A Santa Fe woman says even though she owns her home, red tape from the insurance company is keeping her out and her family has nowhere to stay.
Alma Vigil worked her whole life for the state government and even in retirement, still works full time at a hospital. But her hard work went up in flames during a house fire and now she is just looking for a place to lay her head.
Her small Santa Fe residence represents much of what Vigil worked for her entire life. It is where she took care of her extended family of six, including her own mom and two young grandchildren.
But she was not prepared for what life threw at her the night of Jan. 2. A small fire started near the water heater, then burned through the floor and into her living room.
Christmas presents were ruined and part of the floor and wall were destroyed.
"The worst part is we can't live here--all the utilities were shut off that night," Vigil said.
Her home wasn't destroyed, but it is unlivable until repairs are made. Red Cross put her up at a motel, but that ran out Thursday night.
Vigil does have insurance, but all the red tape means it could take a while to ger her home fixed. She says the insurance company is delaying estimates for repairs.
"I haven't heard from the insurance as far as cost, prices, what contractor to go with," she said.
Vigil said finding a place to rent until repairs are done is not easy with a family of six.
"They want first and last month's rent, plus deposit. And I just don't have that kind of money together," she said.
Vigil said she didn't realize how good she had it until a fire took it all away.
"It's hard when you don't have a home. We have a home, but we can't live in it," she said.
Vigil is hoping someone can help her deal with her insurance company or help her fix her home so she can get back to taking care of the ones she loves.
WASHINGTON, Jan 13 (Reuters) - A top bank regulator said on Tuesday the U.S. government should return to its original plan to buy toxic assets from financial institutions.
John Bovenzi, chief operating officer for the Federal Deposit Insurance Corp, told lawmakers that "a key component" of the second half of the government's $700 billion financial bailout fund should be removing problem assets from the balance sheets of banks and related entities.
"Such a program is necessary to expand banks' balance sheet capacity to undertake new lending as well as to attract private equity investment," Bovenzi said in prepared remarks to the House Financial Services Committee.
The FDIC official's comments echo ones made earlier Tuesday by Federal Reserve Chairman Ben Bernanke. He said the government could consider buying troubled assets, providing asset guarantees, or setting up a so-called bad bank to take over assets in exchange for cash and equity.
Bovenzi told lawmakers the government's financial rescue efforts have not gone far enough and that troubled asset relief is necessary to get banks lending at more normal levels and to attract private capital.
"The FDIC believes that the original intent of the TARP -- to remove problem assets from the balance sheets of banks and related entities -- continues to be vitally important," he said.
Bovenzi laid out conditions for such a toxic asset purchase plan, saying participating banks should be required to develop executive pay programs and develop explicit plans to increase lending.
Banks should also be required to demonstrate "the capacity to raise additional private capital in significant proportion to the relief provided," Bovenzi said.
He said a major benefit of such a toxic asset purchase plan would give the government the power to restructure the troubled home loans it buys up.
But a broader loan modification program is still needed, Bovenzi said.
"Because of the sheer volume of troubled mortgages, as well as the large number which are locked in securitization trusts, it also is vital to institute a specific program aimed at foreclosure prevention," he said.
FDIC Chairman Sheila Bair has proposed preventing about 1.5 million foreclosures under a plan that would reward participating lenders by sharing the cost of defaults on restructured loans.
The FDIC estimated the plan could cost the federal government $24.4 billion out of the TARP. The FDIC proposal has been met with resistance from the Bush administration, which has said the TARP is supposed to be used for investing, not spending programs.
However, president-elect Barack Obama has been more supportive of a broad modification program. Obama on Monday sought the remaining $350 billion of the TARP funds, and pledged bolder action to tackle the rising home foreclosure crisis. (Reporting by Karey Wutkowski; Editing by Neil Stempleman and Jeffrey Benkoe)
Believing that piracy will be a continuing problem in 2009, Chicago-based insurance broker Aon Corp. has hoisted a new policy for charterers, shipowners and cargo owners to cover the losses of earnings from ships detained by the scurvy dogs.
The International Maritime Bureau said 199 incidents were reported to its Piracy Reporting Centre in the first nine months of 2008, including 83 in the third quarter. In the same period of 2007, 198 incidents were reported, up 14 percent from the first nine months of 2006.
But pirates are getting more aggressive.
Thirty-one vessels have been hijacked in the 2008 period, more than double the number in 2007. And 581 crew members have been taken hostage, up from 172 in last year's period.
Physical loss and damages to the ship by pirates have been covered by hull and war clauses, and seafarers' ransom can be dealt with by specific coverage.
But there has been a void in coverage for the financial impact of business interruption or loss of earnings, said Peter Townsend, executive director for marine operations for Aon in London.
"What's not covered is the time delay," he said. "Anything that's time critical, our policy will cover."
Take a hijacked oil tanker. The price of oil might have changed from the time the vessel was captured until it was released, and the policy that Aon arranges will cover the difference in prices.
Rising unemployment and the sinking economy are driving sharp increases in the number of Washington area families seeking state health insurance for their children, and more of these families are qualifying for coverage, records show.
The increases are particularly pronounced in the region's largest and wealthiest jurisdictions as employers cut benefits and eliminate jobs. In Fairfax County, for instance, requests for the state's insurance program for children, Family Access to Medical Insurance Security (FAMIS), were up 16 percent between November 2007 and November 2008. In Alexandria, caseloads increased 20 percent, and in Loudoun, they were up 16.5 percent.
Overall, caseloads in Northern Virginia shot up 18 percent during that period, from 19,299 to 22,692, compared with 7 percent for the rest of the state.
In Maryland's Washington suburbs, caseloads for the state's insurance plan for children have increased about 4 percent, from about 45,000 to 47,000. Not only are caseloads up, but the number of people applying for such coverage has increased substantially too. Last week, the Virginia Department of Medical Assistance Services reported that the number of people applying for
FAMIS increased an average of 24 percent a month in 2008 over 2007, from 5,073 a month to 6,291. This included a 40 percent increase in applications in September and October 2008 over the same two months in 2007. In addition, the number of applications approved increased 10 percent statewide from 2007 to 2008.
In Maryland, where eligibility levels are more generous than in Virginia, officials in Montgomery, Prince George's and Howard counties said they have seen an increase in applications for the Maryland Children's Health Program (MCHP) as well. For instance, the number of people applying for the program in Montgomery County increased almost 16 percent in October 2008 from a year earlier, from 3,977 to 4,599.
The District does not keep separate statistics on the number of children enrolled in its program, officials said.
"These generally seem to be people who, when times were good, didn't need this kind of help, but now with the economic downturn and loss of a job, now they may need it," said Sandy Ovuka, public assistance program manager for the Fairfax County Department of Family Services.
Social services officials and advocates for the poor say the numbers reflect the worsening recession and the larger problem of millions of uninsured Americans. There is a direct correlation between the increase in the number of children seeking state-sponsored coverage and the number of adults who lose their jobs or can no longer afford employer-sponsored coverage, national studies have found.
Although more families are finding that they qualify for coverage for their children, many of the parents still make too much money to qualify for government-sponsored coverage, such as Medicaid, for themselves. The increase in requests for assistance also burdens already stretched state budgets.
Each state runs a children's health insurance program paid for by a combination of local and federal dollars that covers families whose annual income is too high to qualify for Medicaid. Generally known as the State Children's Health Insurance Program (SCHIP), the eligibility requirements are usually much more generous than publicly financed health insurance for adults who are not elderly or disabled. In Virginia, a family of four making less than $42,400 a year -- or 200 percent of the federal poverty level -- is eligible for the insurance, although some states add money to expand the coverage to a broader group. In Maryland, a family of four making up to $63,600 qualifies for some health care aid for their children.
Health insurance has a become a big issue as more and more people are laid off due to the financial crisis, their options being either seeking new individual health insurance or using the COBRA plan, which was created especially for laid-off workers.
The problem with COBRA is that it is largely unaffordable, taking up more than three-quarters of a worker's government unemployment compensation. Currently, the unemployment rate is 7.2%, which is the highest the US has seen in 16 years. This means that millions and millions of people are jobless, thus looking for health insurance. A laid off worker with health problems is very unlikely to find individual health insurance, as companies are afraid to cover them.
The situation in Hawaii is even worse, even though the COBRA plan is the cheapest in Hawaii, most of the unemployed people can’t afford paying for health insurance. This is very hard, as one is constantly thinking and wondering what is to do if he gets seriously sick.
The large majority of Americans get their health insurance from their work place, those who are jobless are thus in a big predicament. About 46 million people have no health insurance and the rest are covered by government insurance. Surveys show about 18 to 26 percent of people eligible for COBRA use the program in any given year, meaning that a low percentage of the people without a job live without a health insurance.
The health care system needs to be reformed, one way or another, and this should be the number one priority.
(CBS) When people lose their jobs, they also lose their health insurance. Finding alternative insurance can be intimidating, and expensive. But in this column, Early Show financial adviser Ray Martin goes through some of the available options.
For starters, he says, do NOT go without insurance, assuming it's going to be prohibitively expensive. The No. 1 reason individuals file for bankruptcy is medical bills that can't be paid thanks to a lack of insurance. But, he stresses, you do have some choices.
According to recent statistics, about 46 million Americans are going without health insurance coverage. With the souring economy and rising unemployment, the number of folks losing job-related health insurance benefits is set to rise significantly. And with more folks looking for jobs, finding a job will take longer, which means more displaced workers can go without health insurance for longer periods of time.
Unfortunately, there is no universal health insurance plan for folks who need temporary health insurance coverage due to loss of coverage when they are between jobs or no longer qualify as a dependent under a spouses or parents plan. However, many insurance companies are developing more individual and "gap" plans in an effort to make some options more affordable to individuals, due to a growing market demand. Sorting through the available options and finding affordable short-term health insurance can be challenging, but it's not impossible.
Here's what to look for:
COBRA Continuation of Coverage
Under a Federal law called COBRA (Consolidated Omnibus Budget Reconciliation Act), displaced workers are provided the right to continue coverage under their employers' group plans after they change or lose jobs. Continuation of coverage can also apply to children who no longer qualify as covered dependents because they are no longer full-time students. This option is available to employees of companies with group health plans that cover 20 or more workers. Some employers with other health plans (such as self-insured plans) may not be required to provide COBRA continuation coverage. The cost of health coverage under COBRA for displaced workers is usually more expensive than health coverage for active employees, since, usually, the employer pays a part of the premium for active employees, while displaced workers are required to pay the entire premium themselves. Since it is the full cost for the coverage, it can be expensive: On average, the monthly premium for an individual policy in 2008 was $392, and for a family plan, about $1,056 a month, according to a recent Kaiser/HRET survey. But typically, that is still less expensive than individual health coverage with the same features and benefits.
Coverage under COBRA can be continued for up to 18 months, and up to 36 months when loss of coverage is due to divorce, disability, etc. When electing COBRA coverage, you must be sure to do so within 60 days of your “qualifying event” (such as loss of your job, divorce, etc.); after that time, the insurance company can decline your eligibility. Once you select COBRA, your coverage is effective with no gaps, so your eligible medical claims during that period of time should all be covered. Because this is the same coverage that the worker had before losing his or her job, the same benefits and features are available, and there are typically no restrictions for preexisting conditions. You can also discontinue participating at any time after permanent coverage is found.
But continuation of health insurance under COBRA is not always available for workers of companies that go out of business: When a company shuts its doors and also terminates its health insurance plan, usually there is no COBRA coverage available. If, however, there is another plan offered by the company, you may be covered under that plan.
Short-Term Medical Insurance
Short-term medical insurance can provide coverage for a limited period of time, and may be a good solution for those between jobs or waiting for other health insurance to start. This form of coverage is offered by a select group of insurance companies and features coverage from one-to-12 months. This can be a good option for those between jobs, when COBRA is not available and you do not have significant pre-existing conditions. For example, the Celtic Insurance Company offers a short-term medical plan for a 45 year-old male that can cost as little as $74 a month. Of course, the cost of this coverage will depend on your age, other health related factors, and the deductible you select (some products feature a selection of deductibles from $250 to $2,500). After the deductible is paid, covered individuals typically pay 20 percent of covered expenses up to an out-of-pocket limit, and then all covered expenses are covered 100 percent up to $2 million. Another provider that offers short-term medical insurance is Golden Rule (a UnitedHealthOne Company). Also, check out www.ehealthcobra.com, a Web site developed by eHealthInsurance that offers quotes and side-by-side comparisons of several short-term and high-deductible medical plans for individuals and families.
Catastrophic Health Insurance
As the name implies, these policies are primarily designed to cover major emergency medical expenses. The cost is relatively low, because insured people must first satisfy a high deductible, ranging from $500 up to $15,000, depending on the plan purchased. These policies are not intended to pay for routine doctor office visits or trips to the emergency room for the flu, nor for preventative care, maternity care or mental health care. However, most catastrophic plans cover hospital stays, X-rays, and surgical expenses. Think of this as affordable medical coverage for the worst that can happen, which primarily provides coverage so your other assets do not get wiped out from the high cost of a true medical emergency. Folks who get this coverage will need to be prepared to pay a deductible if they incur a serious illness or accident. If you have a pre-existing condition such as heart disease, cancer or diabetes, you are generally not eligible for this type of coverage. There are several Web sites that will compare catastrophic plans in your area and provide quotes for you, including gohealthinsurance.com and medhealthinsurance.com.
Association Coverage
Many trade, professional or other associations offer health insurance to their members. If you belong to any groups or associations, call their membership services to find out if they offer this coverage. There can occasionally be a small, additional administrative fee such as two percent of the annual premium that the Association may charge you, but this is still a good way to obtain a group rate for coverage.
Non-Group Coverage
Many health insurance companies offer individual health insurance coverage. This can be very expensive and may not available in your state. Often, application requirements will apply, and preexisting conditions will be excluded from covered health and medical conditions. Some states mandate a “high-risk pool” that guarantees by law that they accept those who apply, under certain conditions. Check with your state's insurance department for more information.
Local Clinics
Some uninsured adults turn to local clinics for low-cost or free medical care for things such as routine visits or check-ups. But this is not a viable alternative for a major illness or accident, as hospitalization is not provided. If you decide to forgo health insurance, it does not mean that you can't still seek care from your family physician or local doctors; you will just need to pay as you go. And don't be afraid to negotiate those fees. This is a much more affordable way to seek care then going to an emergency room, where the cost can be more than 10 times higher.
Medicaid
This is a joint federal-state health insurance program for individuals who meet near poverty-level income and asset qualifications. States usually provide Medicaid for individuals who receive federally-funded cash assistance payments, such as SSI. The set poverty-levels can vary by state so, for more information about Medicaid, contact your state's Medicaid agency, social service or welfare office.
TAMPA (2009-01-09) Some homeowners are upset with the "take-out" or shifting of insurance policies from Citizens. The idea is to lower the state-run insurer's risk exposure. But, consumers believe it's putting them at risk. It's a part of the state's ongoing attempt to stabilize Florida's property insurance market.
During the 2004-2005 hurricane seasons, a total of eight storms cost Florida billions of dollars in property damage. Insurance companies stopped writing new policies and there was a stampede to not renew current policies.
Like tens of thousands, Michael Letcher, a former bank executive and licensed CPA, had his policy canceled.
Letcher's hunt for a company to insure his Lake Worth home led to the creation of his online Home Insurance Buyers Guide. His independent company helps homeowners find, screen and contact insurance companies that are writing new policies in their area.
The state offers a similar site: shop and compare rates.com.
State incentives have helped to increase the number of companies writing property insurance, but Letcher says more is needed.
"These are pretty staggering numbers, if you think about the whole state of Florida there are about 450 licensed homeowner insurance companies," Letcher says. "And of those 450, there are only 41 that are actually writing any new business."
One incentive program offered $250 million in low interest state loans to insurance companies that put up matching funds and committed to writing more policies or face penalties.
That program still exists, but all the money is committed and legislative attempts to expand it were vetoed by the governor.
Another effort to stabilize the property insurance market is the state backed re-insurance that requires companies to pass their savings on to policy holders. State regulators say premiums have gone down on average 16 percent.
And, in the last three years, about 30 new property insurance companies have come into Florida according to Ed Domansky, communications director for the Florida Office of Insurance Regulation which licenses and oversees the rates and financial solvency of insurance companies.
Domansky believes smaller companies are getting a bad rap in part because they're linked to the legislature's "take-out" program designed to reduce the number of policies held by state-run Citizens Insurance.
LAS VEGAS—Authorities didn't believe Thomas William Randolph's claim that an armed intruder shot and killed his wife before he shot and killed the gunman last May.
Las Vegas police homicide Lt. Lewis Roberts said Randolph's deameanor and evidence at the scene didn't add up.
Instead, investigators allege, Randolph hired a handyman to kill his wife and then killed the handyman in a plot to collect more than $400,000 in insurance.
Randolph, 53, was arrested Thursday at his mother's home in Utah, a day after a grand jury in Las Vegas handed up a four-count indictment charging him with murder and conspiracy in the May 8 slayings of his wife, Sharon Clausse Randolph, 57, and the handyman, 38-year-old Michael James Miller.
Randolph was being held Friday at the Davis County jail in Utah pending extradition to Nevada.
Authorities in Las Vegas and a former prosecutor in Utah said suspicions in the Las Vegas case were heightened by Randolph's past, including his acquittal by a jury in the 1986 shooting death of a previous wife, Becky Randolph, in Clearfield, Utah.
"I wish them every success in being able to convict Mr. Randolph, because I wasn't able to," said former Davis County Attorney Mel Wilson, the prosecutor in that case. Randolph maintained that Becky Randolph's death was a suicide. Utah cannot try him again.
Wilson, now a private attorney in Bountiful, Utah, said Las Vegas police detectives contacted him weeks ago about Randolph.
Local insurance hikes will be steepTHIBODAUX – Insurance-rate hikes for Louisiana Citizens policy holders will be much higher in most parts of Lafourche and Terrebonne parishes than the 7 percent statewide average.
Set to go into effect April 1, premium increases for policyholders with Louisiana’s insurer of last resort will be 22 percent for Terrebonne Parish residents north of the Gulf Intracoastal Waterway and 33 percent south of the Intracoastal Waterway.
In Lafourche, Citizens’ customers south of the Intracoastal will see a 32 percent increase. The only local area falling below the state average will be in Lafourche north of the Intracoastal. Policy holders there will see a 6 percent increase.
The 7 percent average increase statewide is the outcome of a settlement between the state Department of Insurance and Citizens, It falls below the hike proposed by Citizens in October.
Projected to produce $15.3 million of additional revenue for Citizens, a state-sponsored insurer, the 7 percent change is part of a plan to ensure its premiums stay above the offerings of private companies.
The intent is to move policyholders away from the state-sponsored program and to a private insurer, according to Insurance Commissioner Jim Donelon.
Citizens primarily provides homeowner coverage for people who can’t find it elsewhere.
The rate hike proposed in October, approved by a 4-3 vote of Citizen0’s board members, meant Lafourche and Terrebonne customers were looking at increases as high as 43 percent in some coastal regions.
But the estimate used to compute the increase wasn’t on par with actuarial standards and was tossed, Donelon said.
The department must choose the higher of two homeowner premium estimates, in accordance with a state’s law intent on encouraging private competitions. One is based on surveying companies about their rates, and the other is based on a formula evaluating risk.
Donelon said he took the market estimate, which was lower, after staff members noted the other estimate included unaudited data.
The April hikes, which will come when policies are renewed, could be just one of two increases this year.
April’s increase is a 2008 rate adjustment, necessary because John Wortman, chief executive of Citizens, wants to avoid risking a delay for the 2009 rate analysis.
Citizens will begin that rate analysis between April and June, so policies renewing in the fall could experience the 2008 and 2009 spike at the same time.
WASHINGTON -(Dow Jones)- Hartford Financial Services Group (HIG) and Lincoln National Corp. (LNC) were granted thrift charters Friday, clearing a hurdle for their insurance affiliates to receive capital infusions under the Troubled Asset Relief Program.
Hartford Financial has a number of life-insurance affiliates, while Lincoln National is the parent of Lincoln National Life Insurance Co.
The Office of Thrift Supervision announced the approval of the thrift charters for Hartford and Lincoln on its Web site.
The life-insurance industry has been lobbying to receive federal rescue aid under TARP, as insurers' investment portfolios have been badly battered by the financial turmoil.
The Treasury told the industry that only companies with a federal regulator are eligible for the program. Some insurers, such as MetLife (MET), have long held thrift charters. The industry, however, is almost exclusively regulated at the state level.
Jan. 9 (Bloomberg) -- American International Group Inc., the insurer rescued by the U.S. government, will probably sell its Canadian life insurance unit in the next few days, with the Desjardins Group among potential bidders, said a consultant who has advised AIG.
The sale “could be today, but I would suggest in the next 10 days or so,” said Byren Innes, a senior vice president with Toronto-based NewLink Group Inc., a management consulting firm. “The sale was expected to close by the end of December, but it’s dragged on a little bit.”
AIG, once the world’s biggest insurer by assets, is selling businesses to repay a $60 billion loan that’s part of the U.S. government’s rescue package. The units on the auction block include a jet-leasing company and life insurance divisions from the U.S. to Japan.
Potential buyers include Desjardins, Canada’s biggest credit union, Innes said today. Montreal-based Desjardins offers individual and group life and health insurance and runs brokerage and lending operations, primarily in the French-speaking province of Quebec. The AIG purchase would add to the firm’s distribution network outside Quebec.
AIG sells products including life and health insurance in Canada, according to its Web site. Peter McCarthy, chief executive officer of the Toronto-based AIG Life Insurance Co. of Canada, didn’t return a call seeking comment.
Desjardins spokeswoman Isabelle Truchon declined to comment, as did David Monfried, an AIG spokesman in New York.
To contact the reporters on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net; Zachary R. Mider in New York at zmider1@bloomberg.net.
Aon Corp., the world's largest insurance broker, said Tuesday it has completed the sale of Auto Insurance Specialists LLC to auto insurer Mercury General Corp.
Aon (nyse: AOC - news - people ) received $120 million in cash for all the issued and outstanding equity interests of AIS Management LLC, which is Auto Insurance Specialists' parent company. Aon may also receive up to $34.7 million over the next two years if certain performance benchmarks are met.
The transaction, which was announced in October, closed on Friday.
Aon shares fell 24 cents to $43.87 in afternoon trading. Mercury General (nyse: MCY - news - people ) shares gained 43 cents to $45.25.
The Insurance Board of Sri Lanka (IBSL) said that sixteen companies have been registered with the IBSL in terms of Regulation of Insurance Industry Act No 43 of 2000. Eleven companies are involved with both Life and General policies three with only General policies and another two with only life policies.
The companies are ABC Insurance Company, Allianz Insurance, Allianz Life Insurance Lanka, Amana Takaful, Asian Alliance Insurance, Ceylinco Insurance, Ceylinco Takaful Company, Co-Operative Insurance Company, Eagle Insurance, Hayleys AIG Insurance, HNB Assurance, Janashakthi Insurance, Life Insurance Corporation, Seemasahitha Sanasa Rakshana Samagama,Sri Lanka Insurance Corporation and Union Assurance.
There are also 54 registered broker companies and a larger number of agents in the country. Four companies have not registered for 2008 and the IBSL has refused to renew the registration of only one company for 2008 who has not fulfilled the requirements as per the regulations.
Director General IBSL L.S.A. Serasinghe told the Daily News Business that the premiums under the relevant companies should be paid only to those registered companies, Insurance broking companies and Insurance agents registered with an insurance company.
Asked whether there are any irregularities in the industry due to the current financial crisis taking place globally, she said, there is no impact on the insurance industry so far and the IBSL will keep the public informed through the media on all activities taking place as an annual event so that people would be well aware about how they should act.
On the question whether the demand for the new insurance policies has declined, she said that it is too early to comment as business activities have not picked up yet in the new year.
ALBANY — Gov. David A. Paterson will propose that private employers be required to offer health insurance to workers’ dependents who are ages 19 to 29, part of what the administration hopes will be a step toward universal health care coverage in New York. Mr. Paterson plans to call for the legislation during his State of the State address on Wednesday afternoon.
“This year, we will take another important step as we move toward increasing access to coverage for all New Yorkers,” Mr. Paterson said in a written statement on Tuesday.
Currently, employers are not required to offer health insurance to dependents who are older than 18 or, if they are in college, 22.
The proposal would amount to a wide expansion of coverage to some 800,000 people 19 to 29 years old who are uninsured. And it ties into a continuing initiative by Mr. Paterson, who is asking the State Legislature to approve deep cuts in spending this year, to enhance the kinds of social safety nets that are overwhelmed during an economic downturn.
According to the governor’s office, 31 percent of New York’s uninsured are ages 19 to 29. Many of them lose coverage once they graduate from college and remain uninsured until they are able to find a job that offers health insurance. But as the job market worsens, the state anticipates that the issue will become more pressing, with more and more young people unemployed and uninsured.
If the Legislature approves the proposal, the state expects that about 10 percent, or 80,000 people, will take advantage of it.
Paterson administration officials said that the plan would not cost the state or businesses anything. The only cost would be to families that chose to pay for the expanded coverage.
Kenneth Adams, president of the Business Council of New York State, a group that represents businesses across New York and was briefed on the plan by the governor’s advisers, called the proposal “compelling” and said that it would be especially critical given the economic climate.
“Out of the gate, a program that gets 80,000 New Yorkers health insurance is a good thing,” Mr. Adams said. “Considering where the economy is right now, and that by definition this is a tough period for this age group to obtain insurance, it is a very important issue.”
Mr. Paterson’s legislation would round out proposals to expand access to health care that he laid out in his budget for the 2009-10 fiscal year, which begins on April 1.
One proposal would simplify the application process for public health insurance programs by eliminating the requirement for face-to-face interviews, among other things. Another proposal would expand eligibility for the state’s Family Health Plus insurance program, which covers people who exceed the limits for Medicaid eligibility.
When the Jackson City Council meets this morning, members should reject the idea of donating an old police cruiser as an incentive for local high school students to stay in school and graduate. It's not that we have anything against providing incentives for students to finish high school. But this particular idea is a bad one for a number of reasons. This idea originated as part of the anti-crime task force report, which urged Jackson-Madison County Schools Superintendent Dr. Nancy Zambito and her staff to come up with incentives to help kids stay in school. The idea was that many habitual criminals are high school dropouts who have trouble finding work.
Under this proposal, the city would donate the 1992 Ford Crown Victoria. Automotive students from South Side would refurbish it, and it would be given away to a graduating senior in a drawing later this year
The proposal projects the wrong image to students. Stay in school, we'll give you an old police car. This particular car has a lot of wear on it - it's got 160,000 rough and tumble police miles. And high performance police cars aren't exactly known for their good gas mileage. Most old police cars are sold for well under $1,000 and for good reason. It's not a very reassuring message to send to students.
Another problem is that it takes control away from parents. Giving a teenager a car is serious business, one parents often worry about and want to be able to control. Then there is a issue of who will pay for car insurance, maintenance and other expenses. The student, maybe, if he or she has a job. Otherwise, those responsibilities could fall to the parents.
If school officials want to encourage students to stay in school there are better ways to do that. Some school systems just pay students for their attendance. Or, perhaps if school officials want to give away a car, they could take the sale proceeds from the police car and solicit additional support from local car dealers and other businesses to purchase a newer, more fuel-efficient car, and also cover some of the insurance and maintenance costs.
Offering incentives to help ensure students graduate from high school is not a bad idea. But this one deserves more thought by school officials. Instead of donating the used police car, the City Council should offer the money from the sale of the car.
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Every driver understands the importance of having insurance for your automobile. Aside from the fact that it’s the law to have auto insurance, practicality dictates it as a necessity considering the cost of car repairs from even the slightest bumps and dents.
Unlike the cars of your father or grandfather, today’s vehicles are far more complex to the point that mere act of replacing a headlight can cost an owner hundreds of dollars. Automobile body structures are designed with crumble zones which upon impact will crush and fold into it and hopefully away from the driver and passengers. This is a good thing for safety and can be an even better thing for the local car mechanic, dealer or auto body repair shop.
Accidents of even the slightest nature can cause damage to the car’s frame, axils and wheels. This kind of damage is not always noticeable and when the auto insurance claims adjuster comes around to do the inspection, chances are it will be just the obvious outer damage that their assessment will take into consideration.
Once the repair shop’s estimates are accepted, the most insurance companies care to shell out will barely cover the cost of reconstruction, but as anyone who has tried to sell a once new car with an accident on its record will tell you, the real value of the auto is severely hampered. No matter how well the repairs are done, the car’s worth is not taken into consideration when it comes to the compensation provided by the auto insurance. This is where the term "Diminished Value" can save the day and get you the money you deserve.
Sources like Autoloss.com report that an estimated 55% of consumers would not buy a car that has been in an accident and 81% wouldn’t consider the purchase unless they were discounted deeply. This kind of negative perception hampers the resale tremendously and unless the insurance company is willing to pony up more cash as compensation, the owners are the ones taking a major hit.
Many Auto Insurance companies have denied the existence of Diminished Value (http://www.autoloss.com/diminished-value.htm) and often discourage their clients from trying to recover these dollars. While auto insurance agents try to convince you they are on your side, the evidence is to the contrary considering every time a claim is filed it means more money out of the insurance company’s pockets.
The best way to protect yourself and your assets from undervalued auto collision estimates is to have an advocate that is truly on your side. Autoloss.com (http://www.autoloss.com) points out that in many cases even if a person demands an evaluation for diminished value (http://www.autoloss.com/appraisal.htm) on their car the insurance company may deny that diminished value has occurred. There have been instances where the auto insurance adjusters have been given scripts that guide them into providing lower value claims. These types of orchestrated procedures make having a specialist in diminished value on your side imperative.
It is every consumer’s right to have the facts and the issue of Diminished Value is one bit of information that is far too valuable to be kept hidden.
For more information about diminished value you can contact Terry Fisher at Autoloss.com and get a free quote online for your diminished value appraisal. Call them Toll-Free at (877) 655-1661.
The New York Times reported on the front page of its Sunday edition that as part of the planned stimulus program, Obama Considers Major Expansion in Aid to Jobless. If the article is true, it is a very bad sign for both the economy and the culture:
One proposal, as described by Democratic advisers, would extend unemployment compensation to part-time workers, an idea that Congressional Republicans have blocked in the past.
Other policy changes would subsidize employers’ expenses for temporarily continuing health insurance coverage to laid-off and retired workers and their dependents, as mandated under a 22-year-old federal law known as Cobra, and allow workers who lose jobs that did not come with insurance benefits to be eligible, for the first time, to apply for Medicaid coverage.
As far as the economy goes, the plan as discussed basically involves paying more people in both cash and benefits to stay unemployed. This is just about the worst possible approach to reinvigorating the economy.
A major recession will require many people to make real adjustments and do difficult things. They will have to relocate to different states, change careers, accept significantly lower pay while they gain experience in their new careers, work short-term at unrewarding jobs while they go to night school to train for better careers, etc.
In the long run, this Schumpeterian process of creative destruction will benefit both the individual and the economy at large. The individual winds up working in a new, more rapidly growing and thus a more opportunity-filled industry while the country sees its resources--in this case labor resources--reallocated to places and careers where they can do the most good.
In the short term, though, this type of transition wreaks havoc on families and individuals--that is why it is called creative destruction. This means that few people will undertake such changes except under extreme necessity. Anything the government does to reduce that necessity--such as paying benefits and giving health insurance--creates a reason for a waitress in Michigan to stay put and hope things get better when the real opportunity for her may be to move to Arizona and work in the elder-care industry.
Beyond economics, extending these types of benefits is extremely corrosive to the culture. As a small business owner, I can’t tell you how many people over the years have approached me looking for work “off the books” because they were receiving unemployment benefits and didn’t want to lose them. These job applicants perceived getting a job as carrying an enormous tax equal to 100% of the unemployment benefits. Add in normal income and payroll taxes plus the cost of commuting and they saw a job as not worth it. These types of benefits tempt otherwise law-abiding citizens to engage in illegal activities.
Traditional unemployment benefits have already been extended by 13 weeks in states with an unemployment rate of at least 6 percent. This will delay the recovery. To add subsidized health insurance and Medicaid for those who never had health insurance plus give money to former part-timers … this is all a way of slowing necessary changes in the economy.
One can appreciate the need to increase aggregate demand; one can empathize with the desire to help unemployed people, but if the goal is a speedy recovery without undermining law-abiding practices, the rule should be simple: Minimize or avoid situations in which we pay people for staying unemployed.
More than other age groups, people over the age of 65 are reluctant to consider changes in their insurance needs, according to a national survey of homeowners by Trusted Choice and the Independent Insurance Agents & Brokers of America.
Overall, nearly 24 percent of Americans have made changes to their auto, home, life, or health insurance coverage in the past year in order to reduce costs; 18 percent have considered such changes in the past few months; and 33 percent would consider insurance cutbacks in 2009. The overwhelming reason for the reductions is the sorry state of the economy.
Compared with those overall responses, however, older consumers were less likely across the board to make reductions. Only 9 percent of respondents ages 65 and older had made insurance reductions in the past year; 12 percent had considered them recently; and only 10 percent said they would consider them in 2009.
According to the 2007 survey of consumer household expenditures by the U.S. Labor Department, average after-tax income of households led by people ages 65 and higher was about $39,180. Of this amount, health insurance spending averaged $2,770, car insurance cost $975, and $329 was spent on life insurance and other types of personal insurance.
There was no breakout for home insurance, but even without that expense, average insurance payments were about $4,700, or more than 10 percent of after-tax income. By comparison, annual household spending on food—including food at home and meals away from home—was only $4,515.
So, while older consumers might be reluctant to reduce their spending on insurance, they should think about whether some wise trims can be made without sacrificing their key insurance safeguards. Here are tips for where to look for auto, home, life, and health insurance savings:
1) Many seniors have older vehicles and do not need expensive low-dollar deductibles for collision and comprehensive coverage. Consider selecting higher deductibles. However, do not scrimp on liability protection or uninsured motorist coverage. More people are dropping their car insurance because of the tough economy, so you need to make sure you're covered should you be in an accident with an uninsured driver.
2) Some insurers have responded to last summer's $4 gasoline by expanding their reduced-driving discounts to better serve people who have cut back on their driving. If you do not drive many miles, you may qualify.
3) When you rent a car, odds are you do not need rental-car insurance and can rely on your existing car insurance policy to protect you. You will, however, be on the hook for the deductible payment should you be in an accident that is your fault.
4) Inflation protection is a must-keep feature of home insurance, but like millions of seniors who have downsized, you may have reduced your possessions. Review whether you still need special riders on jewelry, furs, computers, and other items.
5) Life insurance is designed to help loved ones, providing them money to replace the income lost by your death and helping to conserve assets in your estate should you have enough wealth to trigger estate taxes. As we age, the protective objectives of life insurance diminish and you may not need as large a policy.
6) Substitute generics for brand-name drugs. The U.S. Food and Drug Administration has a tool to identify generic equivalents of brand-name prescription drugs. Use it and see if you can save money.
Florida-based insurance agency Brown & Brown, Inc. has purchased the assets of Gallagher Associates in Blackwood, New Jersey. Advertisement Sponsored by TransUnion
Gallagher Associates, with annualized revenues of approximately $2.0 million, sells property/ casualty insurance in the southern New Jersey, Pennsylvania and Delaware region.
The Gallagher Associates personnel, including John J. "Jack" Gallagher, Jr. and John F. "Jack" Corbett, will continue to operate from the existing location in Blackwood as a freestanding Brown & Brown profit center.
Government insurance programs that safeguard bank deposits should be reformed to ease taxpayers’ undue stake in propping up the nation’s banking system, according to research by a University of Illinois finance professor. George Pennacchi says the Federal Deposit Insurance Corp., created during the Great Depression to halt bank runs, is supposed to protect savings through premiums paid by banks, but is effectively subsidized by the U.S. Treasury, putting tax dollars at too much risk.
“We have a system where when things get bad, taxpayers end up being forced to pay for bank failures, not just the FDIC,” Pennacchi said.
Proof that deposit insurance has grown overly generous has surfaced amid a global economic meltdown, he said, with investment firms such as Goldman Sachs and insurance giant Hartford Financial becoming banks to get access to insured deposits.
“One of the reasons why that’s so, and I think this has been a long-standing problem, is that government has tended to subsidize deposit insurance, sort of through a back door,” Pennacchi said. “The savings and loan crisis is an example. Instead of premiums paid by thrifts covering the losses, about $124 billion came from taxpayers.”
He proposes reforms in a research paper that will be presented this month at an economic conference sponsored by the American Enterprise Institute, a conservative-leaning, Washington-based think tank that seeks to influence public policy.
One reform, Pennacchi said, is veering away from an approach that provides nearly unlimited government financial backing when large institutions such as Bear Sterns are on the brink of failure. The government, he says, deems some banks “too big to fail,” with so many connections to other financial markets that failure could net a disastrous domino effect.
But he says the problem can be addressed without leaving taxpayers on the hook. He proposes a central clearinghouse requiring banks to put up collateral in derivative trading that would cover potential losses if one of the parties fails.
“That would get rid of the too-big-to-fail problem and is done all the time with exchange-traded derivatives,” Pennacchi said. “If you trade on the Chicago Mercantile Exchange, there’s a clearinghouse that requires both parties to put up collateral, so if one of them fails it doesn’t cause a loss for their trading partners.”
He says the FDIC should also reform premiums for deposit insurance that have historically been artificially low, covering only average losses and heightening risks of a taxpayer bailout in the event of widespread bank failures.
A move toward rates charged for similar, private-market insurance, such as credit-default swaps, would likely yield significant premium increases, roughly doubling current rates, Pennacchi said.
“But I think that’s the minimum that needs to be charged to protect taxpayers and prevent the government safety net from expanding even more,” he said.
Pennacchi also advocates either abandoning a dedicated deposit insurance fund, managing the program through the treasury instead, or creating a swap market that would level out banks’ premiums.
He says banks could lock in deposit insurance costs through a premium swap market, rather than paying higher premiums when bank failures rise and receiving rebates on premiums when failures are low. The swap market would be similar to interest rate swaps, transferring risk to investors outside of the banking industry.
“If there’s any reform that would be easy to do it would be to create this premium swap, which would lead to more stability for banks because they wouldn’t face high premiums in bad years when they’re least able to pay,” Pennacchi said.
His research will appear in a book that will be published this year by the American Enterprise Institute. The book will focus on government guarantee programs ranging from the FDIC to crop and terrorism insurance.
MONTGOMERY, AL (WSFA) - As the economy dips further into recession a new study shows that Alabamians are losing their health insurance.
Alabama State University's Center for Leadership and Public Policy says a recent survey finds that fewer Alabamians had health insurance in 2008 than in 2007.
The study, which surveyed 403 random Alabama residents over a six-week period in late 2008, found that 80% of households had insurance in 2008, down from 83% the previous year.
Those who didn't have insurance said the main reasons were 1.) no employment or 2.) they just couldn't afford it.
ASU's study reveals that of those that were insured 50% of households said their employer was the source of their insurance while another 25% said insurance came through a family member's employer. The remaining 25% said they purchased their own insurance.
The drop in coverage is affecting those who are younger and have smaller incomes. ASU's study found that 56% of respondents with no health insurance were under the age of 41 and had incomes of less than $25,000.
The study included a breakdown of uninsured Alabamians by race. Of those who said they were not insured 48% were Caucasian and 42% were African-American.
ASU says it has a confidence level in the study of 95% and a confidence intertal of plus or minus 4.9%.
Louisiana homeowners could receive cash from the unused portion of an expired pot of government money used to lure insurance companies to the state, Insurance Commissioner Jim Donelon said Monday.
Donelon estimated the checks would total $50 or more, though he's not sure when the Department of Insurance will mail them.
The money comes from the remainder of a $100 million fund set up in 2007 as matching grants for private insurance companies that agree to begin writing policies in coastal areas.
The incentive program was aimed at improving homeowners' access to private insurance after the 2005 hurricanes, and to reduce the number of policies written by the state's "last-resort" insurer, Louisiana Citizens Property Insurance Corp.
The insurance department issued $29 million in grants, and state law says the remaining money should be divvied up and given to holders of homeowners policies.
Donelon, speaking to the Press Club of Baton Rouge, also said he plans to back legislation this spring that would help consumers by eliminating a health-insurance loophole that can produce bills from radiologists, pathologists and anesthesiologists. Donelon said a small percentage of those specialists do not fall under health insurance plans, and their care can trigger bills on top of patients' deductibles.
Donelon said he expects the bill to encounter opposition from the insurance and hospital industries.
SAN FRANCISCO--(BUSINESS WIRE)--Civil Service Employees Insurance Group (CSE Insurance), a leader in providing civil service employees with quality protection at affordable rates, today announced the promotion of Kelli L. Schulhofer to Vice President of Sales from Regional Marketing Director.
In her new role, Ms. Schulhofer will be responsible for CSE’s overall agency field force and the company’s distribution network in Arizona, California and Nevada.
“Kelli has played a key role in helping our agents increase their sales production over the years,” said Pierre Bize, President and CEO of CSE Insurance. “Now, as CSE moves into its 60th year of operations, we expect that she will continue the positive momentum by gaining further sales successes and increased visibility for CSE.”
Ms. Schulhofer joined CSE Insurance in 1998 as a Senior Territorial Marketing Representative for the Los Angeles, San Bernardino, Ventura, Santa Barbara, and Bakersfield areas. She was promoted to Regional Marketing Manager for California in 2005, and named Regional Marketing Director for California in 2007. During her ten years with CSE, she has supervised marketing representatives in California, Arizona, and Nevada, and has managed advertising co-op programs and strategic marketing opportunities on behalf of CSE agents.
Prior to CSE, Ms. Schulhofer was Vice President of Insurance Operations for Coast Fed Services in West Hills, CA from 1995 to 1998. She also served as an Underwriter for Auto Insurance Specialists in Woodland Hills, CA from 1990 to 1995, and an Office Manager for Bohannan & Associates, Farmers Insurance Agency, in Van Nuys, CA from 1986 to 1990.
Ms. Schulhofer received a BA degree in Business Administration from Capella University in Minnesota. She has held a Licensed Property & Casualty since 1988, and a Licensed Life, Accident & Health Certificate since 1997 and Certificate in General Insurance since 2004.
A Chicago native, Ms. Schulhofer now resides in Santa Clarita, CA with her husband and two daughters. She has been a Girl Scout leader for seven years, and enjoys snow skiing. She is an avid sports enthusiast with a passion for the Chicago Bears.
About CSE Insurance
Founded by a civil service employee nearly 60 years ago, Civil Service Employees Insurance Group (CSE Insurance) serves the people who serve the people by providing top quality property and casualty insurance for teachers and other educators, firefighters, law enforcement personnel, and other government and civil service employees at affordable rates. Originally focused on promoting the interests and welfare of civil servants, CSE Insurance has also offered its products and services to the general public for two decades.
With a financial strength rating of A- (Excellent) by insurance industry analyst A. M. Best, CSE Insurance offers a wide range of insurance products, including auto, home, liability, boat, and commercial. CSE Insurance products are sold through independent insurance agents in California, Arizona, Nevada, and Utah, and also through www.cseinsurance.com.
Seattle - In the United States there are over 40 million citizens that includes 10 million children who are without health insurance. This is going to be one of the biggest troubles that soon to be official President Barrack Obama is going to have to handle when he takes office in a few weeks.
Not only do so many people in our country not have health insurance, but those who do currently have it may soon not be able to afford it as insurance premiums are continuing to rise. The fact is that the way things are with health care presently may continue to go downhill and get worse before anyone sees it get better due to the state of our economy.
President elect Obama has reached out to the citizens of our country regarding the health care system and thousands answered that call. Obama asked citizens to come together in groups and discuss what they felt needed to be done to improve the health care system in our country and to come up with some possible solutions. Obama’s transition team set up Sunday as the official date to gather all information discussed and any videos that were made and have them uploaded to their site for review.
In Ohio alone, more than 120 meetings were held and the transition team has received more then 600 reports from groups since the uploading began.
Jen Psaki, a transition team spokesperson has said that they have received an overwhelming outcry from our citizens saying that there is a need for change no matter who the person is. There has been many stories received of very sad situations regarding those who cannot afford health care.
This is not the first time that citizen input has been looked for, however last time there was hardly any medical professionals involved. This time around the medical professionals made sure to give their input. They are concerned with the fact that medical students are choosing to go to the higher paying specialties in their education because nowadays it seems that those who are in general practice are not as valued. Due to this decision rates will continue to rise in health care costs.
There are many reasons that health care is so expensive and why people cannot afford it. There are also many decisions that need to be made by President elect Obama and his transition team along with Tom Daschle, the Secretary of the Department of Health and Human Services. Let us hope and pray that the right decisions are made and the health care system improves quickly for all.
President-elect Barack Obama and congressional Democrats are working on a plan that would deliver $300 billion worth of tax cuts to individuals and businesses, according to the Wall Street Journal.
The proposed tax cuts, which would make up about 40 percent of the economic stimulus package, may make it easier to attract Republican support for an economic-stimulus package, as many Republicans have said that economic initiatives should rely more heavily on tax cuts rather than spending, according to the Wall Street Journal.
The size of the proposed tax cuts could reach $775 billion over two years, which is a larger amount than many Democrats and Republicans in Congress had anticipated, according to the Wall Street Journal.
If enacted, the Obama tax-cut proposals could total more in two years than either of President Bush's tax cuts did in their first two years, according to the Associated Press.
Bush's 10-year, $1.35 trillion tax cut of 2001 - considered the largest tax cut - was made up of $174 billion of cuts during its first two full years, according to Congress's Joint Committee on Taxation.
Obama had hoped to have Congress enact the recovery plan in time for him to sign his when he takes office in January, but Robert Gibbs, spokesman for Obama, said that was "very, very unlikely."
"We don't anticipate that Congress will have passed, both houses, an economic recovery agreement by the time the inauguration takes place," Gibbs told the Associated Press.
Obama has insisted bold and quick action is crucial to help America bounce back from this recession.
"Economists from across the political spectrum agree that if we don't act swiftly and boldly, we could see a much deeper economic downturn that could lead to double-digit unemployment and the American dream slipping further and further out of reach," he said in his Saturday radio and YouTube address.
Congressional aides briefed on the plan say it likely will include tax cuts of $500 to $1,000 for middle-class individuals and couples, as well as some $200 billion to help revenue-starved states pay for health care programs for the poor and other operating costs. A large portion of the money would go for infrastructure projects, such as road and bridge repairs as well as energy efficiency projects and health care information technology systems.
The 2009 legislative session is unlikely to lift the state out of its rock-bottom national ranking in healthcare.
Texas has the highest rate of uninsured residents and spends the least per resident on healthcare — $2,141 compared with the national average of $3,508. The state is not impoverished, ranking 21st in per-capita income, and consistently has a lower unemployment rate than the nation.
Healthcare spending is simply not a priority.
But legislators can improve accessibility and affordability by exerting leadership.
Here are 10 suggestions.
Aggressively enroll eligible children in the Medicaid and Children’s Health Insurance Program (CHIP).
According to the Austin-based Center for Public Policy Priorities (CPPP), about half of uninsured children are eligible for these programs.
Extend children’s Medicaid eligibility from six to 12 months.
The 2007 Legislature extended CHIP enrollment to annual eligibility. Medicaid children deserve the same. When California extended Medicaid eligibility re-enrollment to 12 months in 2001, it saved an estimated $17 million when 3,000 fewer children were hospitalized for asthma, pneumonia and gastroenteritis, says a recent study in Medical Care.
Allow Texans to buy their way into the CHIP program.
According to CPPP, there are families who request pay cuts to enable their children to qualify for the program. Parents making up to $63,000 (more than current eligibility, 200 percent of the federal poverty level, or $42,400 for a family of four) should be able to sign up their children and pay a premium for coverage.
Make insurance companies accountable for their rates.
Texas premiums for family coverage increased 40 percent between 2001 and 2005 while income was up only 3.5 percent. But according to the Journal of Insurance Regulation, Texas is only one of 10 states that do not actively review health insurance rates. The Texas Department of Insurance is up for a sunset review, and lawmakers should use the opportunity to strengthen the department’s oversight.
Assist in forming risk pools to protect individuals and small businesses from unaffordable rates.
Other states have implemented reforms for reinsurance — or insurance for insurance companies — to lower rates, made high-risk pools more affordable for those with chronic conditions, and formed health insurance exchanges to assist in creating a larger risk pool and foster competition among insurance companies.
Improve the Texas Advance Directives Act.
A 2007 compromise bill that would have improved the 1999 version for disputes over end-of-life care failed primarily because the session ran out of time. The measure built more time and a swift legal appeal into the process and dictated better communication between the care providers and patient families. It deserved passage.
Keep the funds for trauma care where they belong.
Money designated for hospital trauma centers from the Driver Responsibility Program fines continues to be diverted for other uses. Trauma centers are only getting about half of the fines’ proceeds.
Implement a statewide smoking ban.
Cigarette smoking and obesity are the two most preventable causes of chronic disease and death. Smoking restrictions and excise taxes are the most effective means of decreasing smoking rates. The House passed an exception-laden ban in 2007 that deserved its legislative death.
Build on protections against "balance billing."
This hoary practice bills patients treated by physicians outside their insurer’s network for the portion the insurance company won’t pay. This is especially outrageous in emergency situations where the patient is in no condition to make informed choices. California and Illinois have taken measures to protect residents, and Texas should do the same. Lawmakers in 2007 passed requirements for disclosure of non-network practitioners, but they need to go further.
Increase healthcare access by increasing providers and broadening scope of practice.
The the state demographer reports Texas will need at least 40,000 new doctors by 2025 because of physician retirements and population growth. The Task Force on Access to Health Care in Texas recommends increasing the number of medical school graduates by 25 percent and dentists by 20 percent over the next decade. Physician assistants and nurse practitioners are increasingly important in rural areas, and staff most retail health clinics. Onerous physician oversight requirements handcuff too many opportunities to give basic care.
Insurance agencies are reporting more drivers are letting their car insurance lapse because of the sour economy and that is putting themseleves and others at risk.
According to the insurance research council several hundred thousand drivers dropped their insurance in the past year as the jobless rate climbed.
Online Agency Insurance Dot Com says it's also seeing evidence recently of more uninsured motorists.
Another factor may be that many people faced with huge bills from hurricanes let their insurance lapse, but this could be a costly decision.
The Wall Street Journal More drivers are letting their car insurance lapse because of the sour economy, putting themselves and others at risk.
Several hundred thousand drivers dropped their insurance in the past year as the jobless rate climbed, estimates a study to be released soon by the Insurance Research Council, an industry-funded group.
Online agency Insurance.com says it also is seeing evidence recently of more uninsured motorists. It says that as many as 40 percent of callers following up on online applications had let their previous policies lapse, up from less than 10 percent a couple years ago.
* * Story: What to do after an accident * * Without a net
A slumping economy is putting more uninsured drivers on the road. Here’s how to protect yourself:
• Make sure you have extra coverage that compensates you if you’re hit by an uninsured motorist.
• Set your own liability insurance amount commensurate with your assets. This amount also helps determine the limit of your uninsured motorist coverage.
The trend is bad news for everybody on the road. If you’re hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage — almost half of states require the added coverage — but this may boost your premium.
Even in good times, many Americans drive without insurance. The Insurance Research Council’s previous study, released in 2006, found that nearly 15 percent of drivers nationally were uninsured in 2004, up from about 13 percent in 1999. In some states, including Mississippi, California and Arizona, roughly a quarter of drivers weren’t insured.
Preliminary data from the council’s forthcoming study “indicate that a single percentage point increase in the unemployment rate is associated with a half-point increase in the percentage of uninsured drivers,” said David Corum, council vice president. The nation’s jobless rate was up two percentage points to 6.7 percent in November from a year earlier. The group estimates the number of uninsured motorists based on data from insurance claims.
Possibly adding to the problem is the fact that auto-insurance rates are rising again after a couple of years of flat or declining premiums. Premiums nationally rose 3.8 percent in November from a year ago, according to the Labor Department’s consumer price index.
Agents say a growing number of customers are stripping down their auto-insurance policies, taking the absolute minimum level of liability coverage legally required to drive in their state.
“A good proportion of people on the road are either uninsured or underinsured, and so you have to protect yourself,” said Robert Hartwig, president of the Insurance Information Institute, a nonprofit group. “Your odds of being in an accident with an uninsured driver are substantial.”
Motorists driving without insurance also face risks. In a wreck, they could lose whatever assets they own in a court judgment. Also, driving without insurance is illegal in 48 states and the District of Columbia. The only states that don’t require insurance are New Hampshire and Wisconsin; these states require drivers to show proof of the financial ability to pay damages for liability.
Motorists who allow their policies to lapse for any reason also often must pay an initial 25 percent to 50 percent surcharge for a new policy. Insurance companies charge them more because they consider them irresponsible: Unlicensed and uninsured drivers are disproportionately involved in fatal accidents.
HONOLULU – The Insurance Fraud Investigation Unit of the State Department of Commerce and Consumer Affairs (Fraud Unit) experienced a 61 percent increase in criminal convictions for motor vehicle insurance fraud in 2008 over the previous year.
Fraud Unit convictions increased from 18 in 2006 to 34 in 2007 and 55 in 2008. Convictions for felony charges may result in a prison sentence of up to 10 years and/or a fine of $25,000.
Examples of insurance fraud cases in 2008 include charges involving a Big Island resident, a body shop owner, and a career criminal.
Beverly Medeiros, an Educational Assistant in Pahoa, Hawai‘i was investigated for five separate cases. Medeiros alleged that she was unable to work due to injuries from an auto accident. Medeiros created fictitious employers and utilized a post office box address to intercept all correspondence. Medeiros defrauded three different insurance companies. In January 2008, Medeiros was sentenced to 30 days in jail. Medeiros was also ordered to pay restitution totaling more than $103,000 along with court fees in the amount of $1380.00.
In a separate case, body shop owner Bryan Hong pleaded no contest and was granted a deferral for defrauding an insurance company. In October 2008, Mr. Hong was ordered to pay nearly $4,000 in restitution for work that the company paid for but was not performed. The work consisted of safety and structural repairs to a customer of O’Sung Auto Body. Mr. Hong was further ordered to pay a $1,500 fine and complete a five-year probationary period.
In a typical case of insurance fraud, Noelani Delizo obtained insurance coverage after she was involved in a three-car accident. Delizo then reported a false date of accident in an attempt to have her insurance company pay for the damages. In November 2008, the court ordered Delizo to serve a five-year prison term for attempting to obtain fraudulent insurance benefits. She was also ordered to pay $500 in restitution to the accident victims.
Insurance Fraud affects everyone by inflating the cost of insurance. Insurance fraud is estimated to cost each household in Hawai‘i an additional $200 to $300 in increased premiums every year. Informing insurance companies of suspicious insurance fraud activity may help in lowering premiums for all Hawai‘i’s citizens.
To report insurance fraud or for more information, call the State of Hawai‘i’s Insurance Fraud Hotline at (808) 587-7416.
Christine Hirasa is the Public Information Officer for DCCA. Reach her at mailto:chirasa@dcca.hawaii.gov
ferarri dubai insurance insurance company ferarri ferarri enzo Ferarri insurance The mystery deepened Monday in the case of the puzzling crash last week of a $1-million Ferrari Enzo on Pacific Coast Highway in Malibu. Sheriff's detectives said Monday that they believe a gun's magazine discovered near the wreckage is connected to the crash, and they plan to interview an unnamed person who they believe was in the car with Swedish game machine entrepreneur Stefan Eriksson.
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