Saturday, December 13, 2008

Factors Affecting Rates

Insurance premiums are also called insurance rates. Here are some of the major factors that affect insurance rates and what you can do to lower them:
Increase your deductible. A deductible is the dollar amount you pay before the insurance company pays your claim. By increasing your deductible, you increase your share of the risk to insure you. It may seem counterintuitive -- paying more when you want the insurer to bear the risk of loss but what you really want to insure is the risk of a large, catastrophic loss.
Eliminate or reduce unnecessary coverage. Some auto insurance such as collision or comprehensive coverage is aimed at protecting your vehicle and providing for medical expenses. If you have health insurance coverage and your insured vehicle is not very valuable, you may not need the extra coverage.
Drive a car with low theft loss and accident history. Check with the Insurance Institute for Highway Safety (IIHS/HLDI) for theft loss and accident statistics of your auto. In addition, your insurer is likely to offer a discount if you use a car alarm or other anti-theft device.
Drive safely. Safe driving is an important way to avoid accidents in the first place. Put another way, obtaining auto insurance doesn't give you license to drive recklessly and endanger others. Over time, a safe driving record means fewer claims and lower risk. Insurers will reward you for these good habits. Insurers are likely to offer a discount if your auto uses air bags, seatbelts, safety-harnesses, anti-lock brakes or running lights.
Drive less. Some insurers offer discounts if you limit the number of miles you drive or use alternative transportation to get to work. The fewer miles you drive, the less likely you are to have an accident and file a claim. Insurers often discount your rates if you use alternative transportation for work.
In essence, prudence helps to lower your insurance rates. Examples of financial prudence include paying a higher deductible or obtaining lower coverage limits. Examples of driving prudence include establishing good driving-safety habits, using vehicle-safety equipment and avoiding unnecessary driving.

Health Insurance

For many of us, our health insurance benefits are the most important employee benefit. This may be especially true considering an estimated 47 million Americans -- many of them working Americans -- lack basic health insurance according to an August 2007 report published by the U.S. Census.
Before you have a medical emergency, it's important to know how to understand the basics of your health insurance benefits. Some of the basic features include:
Premiums. You want to know how much your monthly insurance premium is and whether your employer pays a part of it. Monthly premiums can easily reach $100 for single persons and two or three times that amount for families.
Employers often obtain health insurance for their employees with a group policy. By spreading the risk among more insureds, group insurance plans are often able to obtain more affordable premiums.
Deductibles. A deductible is the amount you pay the physician before your insurer pays its share of your medical bill. Generally, the larger your deductible is, the smaller your premium. You may wish to consider increasing your deductible in exchange for a lower premium. Higher deductibles are a common way for insurers to make insureds share in the cost of health care. 
Copayments. A copayment is the amount you pay when you visit a doctor. Like a deductible, a copayment is a means of sharing the costs of health care to discourage excessive use of benefits. Copayments are often in the range of $5 to $25 -- not too much but high enough to discourage frivolous use of your benefits.
Out-of-pocket expenses. Out-of-pocket expenses are the costs you have to pay, in total, before an insurer pays for any remaining amounts. Amounts you pay as deductibles are included in your out-of-pocket expenses, which are kept as a running total. Most health insurance plans also have a yearly maximum for out-of-pocket expenses that you have to pay. Once you have reached your maximum for the period, you're usually done paying for that period.
Coverage of services. When it comes to the coverage of medical services, some employer-sponsored health plans are simply more generous than others in the scope of services that they cover. You should be aware of any procedures or medical disorders that your health insurance plan does and does not cover.
Ancillary care. A good health insurance plan pays for visits to a doctor. However, a more comprehensive plan also provides benefits coverage for such ancillary care as pharmacy and vision. Dental insurance is often offered as a separate benefit but it may also be included in a comprehensive health insurance plan as a policy rider.
Health insurers often contract with a network of doctors to provide health care for insureds. These networks are often managed care networks, which include health maintenance organizations (HMOs). HMOs focus on providing preventive care by encouraging early diagnosis (when treatment is cheaper). HMOs actively use copayments, deductibles and out-of-pocket expense caps to manage health care costs.
With managed care, you select a doctor from a roster of physicians in your area. This physician is called your primary care physician. You use your primary care physician as a gateway for your health care, obtaining a referral from him or her to obtain specialized medical care. This gateway approach is another way that managed-care networks seek to control health care inflation, which has easily outpaced general inflation over the past decade.
Health care critics argue that the gateway process penalizes consumers by slowing down the time it takes to receive timely health care for specialized needs. In spite of these criticisms, HMOs and other managed-care networks have become the dominant system for providing health care in the U.S. 
Another type of health care insurance is fee-for-service health care. Fee-for-service care is more expensive than HMOs since it is a pay-for-what-you-get insurance system. Fee-for-service health care plans use a network of physicians called preferred provider organizations (PPOs). An advantage of fee-for-service health insurance is that you have more latitude in choosing a doctor.
A major issue in health care today is declining reimbursement rates, particularly with respect to Medicare reimbursements. Health insurers often use a contracted reimbursement system to pay physicians and rely on a similar system to be reimbursed by Medicare. For example, an insurer might reimburse a doctor or hospital $10,000 for a kidney dialysis, or $5,000 for a birth given by Caesarean section. However, if Medicare is reimbursing at lower rates, the health insurer eats the difference and is forced to increase insurance rates.
When you receive health insurance, you often have an open-enrollment period. Open enrollment is generally a once-a-year period that lets you modify your insurance coverage. If you give birth to a child or have a change in your marital status, you are allowed another opportunity to modify your health insurance coverage.
If you and a spouse have your own health insurance plans with the other spouse as a beneficiary, you should see how each spouse's plan affects the other. Health insurers use coordination of benefits to determine which insurer pays for which services and to prevent from paying twice for the same procedure or visit.
If you anticipate paying health care costs each year that your employer does not reimburse, you may wish to set up a health care reimbursement account. These accounts let you make before-tax contributions to fund the account during the year, potentially saving you hundreds or thousands of dollars in taxes. Health care reimbursement accounts are also called cafeteria or Section 125 plans after the section of tax code that governs their use.

The Basics

Let's take a look at the basics of auto insurance. In exchange for an auto insurance policy that provides a specific amount of coverage, you pay an insurance company a premium.
How much you pay in premiums is based on a combination of factors, including:
*How much coverage you have
*What kind of coverage you have
*How large a deductible you pay
*Your driving record
*Theft and safety statistics of your auto
*Accident statistics in the area where you live
*How much you drive
*Other drivers on your policy. 
Auto insurers generally bill you every six months or so in order to have premiums reflect their most recent claims expenses. You can usually arrange with your insurer to make extended payments, such as every month, but breaking up your premiums into smaller payments is likely to add to the total cost of the premium.
States often require a minimum amount of insurance coverage for certain categories of auto insurance. For example, most states require some amount of liability insurance. Some states require uninsured and underinsured motorist insurance, while others require medical payments insurance. 
You can often lower your premiums by limiting how much coverage you obtain or eliminating unnecessary coverage. We look at some of the major categories of auto insurance coverage later in this educator.
Insurance is the business of paying for the transfer of risk. Auto insurers will gladly cut you a break on your premiums if you share in the risk. One way to do this is to limit the maximum amount of potential liability the insurer will face.
Another way to share in the risk: Increase your deductible. Paying a higher deductible --- $500 instead of $250, for example -- means you pay more upfront when you file a claim. If you insist on a small deductible, expect to pay a larger premium.
Other ways to lower your premiums include buying a vehicle with a reputation for safety and low theft. You can also drive safely or even drive less. The fewer your opportunities for accidents, the less risky you are from an insurer's point of view.
Auto insurance is regulated by state governments. Each state has its own insurance commission, which regulates rates and handles complaints. An insurer has to have a state license in order to sell insurance in that state. The main umbrella organization of state insurance commissions is the National Association of Insurance Commissioners (NAIC).

Categories of Coverage

Some of the major categories of auto insurance include:
No-fault. No-fault insurance coverage pays for injuries or damages incurred by either you or the other party in an accident. It does not 
matter which party is responsible. No-fault pays for your medical expenses while the insurers figure out which side is at fault. About half of the states 
have a no-fault insurance law.
Liability. Liability insurance is also called bodily injury insurance. Liability insurance reimburses the other 
driver for damages sustained in an accident that is your fault. This coverage includes amounts for bodily injury, property damage and pain-and-suffering 
damages. Liability coverage is usually stated in your policy as a dollar limit. This is the maximum amount the insurer will pay.
Liability limits are generally stated on a per-person and per-accident basis. For example, liability coverage of "15/30/25" means the insurer pays 
$15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $25,000 for property damage per accident. All states require 
some liability coverage, but the minimums may not be enough. Three states that don't require liability coverage are Wisconsin, Tennessee and New 
Hampshire.
Collision. Collision insurance pays for medical expenses and property damage that you sustain in an accident in 
which you are at fault. You may also elect to buy collision insurance coverage when you rent a vehicle.
Comprehensive. Comprehensive insurance provides coverage for theft or loss from accidents other than collision. 
Coverage pays for property damage sustained from such natural events as flood, fire, hail or vandalism. 
Uninsured/underinsured motorist. Uninsured motorist insurance pays you if the other driver does not have insurance. Underinsured motorist 
insurance pays you if the other driver does not have adequate insurance. These types of coverage are not required in all states. They sometimes cover 
only medical expenses or those expenses related to pain and suffering. 
Personal injury protection. Personal injury protection insurance, which is similar to medical payments coverage, pays the medical expenses 
that you incur in an accident. PIP also pays for your expenses in a hit-and-run accident. If you die in the accident, it pays a death benefit. PIP also 
pays for lost wages and other expenses related to the accident. About 15 states require PIP coverage. In other states, it is offered as optional 
coverage.

Term vs. Permanent Life Insurance

The two main categories of life insurance are term and permanent life insurance. 
Term life insurance policies are sold for a fixed number of years that matches your needs. Term life policies are often sold for terms of 10 or 20 years.
You may decide that you and your spouse will have enough income from Social Security and retirement pensions when you retire in 10 years. As a result, you decide you only need a policy in case you die in the next 10 years.
A term life insurance company underwrites your policy, using historical data on insurees with similar risk characteristics to calculate a premium. (Relevant risk characteristics include your health history, age, and gender. You complete a health condition questionnaire and physical exam in order to obtain a certificate of insurability.)
Once you receive a quote for a term life policy, you make level premium payments for the term of the policy. If you die before the end of the term, your beneficiary receives a death benefit. With term life insurance, your policy lapses if you stop paying premiums.
When the policy term ends, you generally have the option to renew, but at a higher premium. A higher premium reflects a greater likelihood of your death during the renewal term. (You're older, after all.) Insurers like to say that your mortality risk is higher, justifying the higher premiums.
Permanent life insurance is different from term life insurance. For one, permanent life insurance provides coverage until you, the policyholder, die. You may cancel, or surrender, a permanent life policy but will likely have to pay a surrender charge. Surrender charges are like paying a back-end load when you sell shares of a mutual fund—it lowers the investment performance of the policy.
A second major distinction of permanent life insurance is that your policy builds up a cash value. Cash value is also called cash surrender value (CSV). This buildup in cash value occurs because you invest a part of your permanent life premiums.
How these premiums are invested is what determines what type of permanent life insurance you have. The most common types are whole life, universal life, and variable life insurance.
For example, you may pay $1,000 in premiums over a 12-month period. If the premiums are invested and increase in value, the future premium necessary to keep your policy active may drop to, say, $500. As a result, your premiums accumulate a cash value of $500 after the first year.
Your cash value is the amount you are entitled to if you cancel your policy. With some types of permanent life insurance, you can use the cash value in your policy to adjust either your death benefit or premiums. Alternatively, if the cash value of your policy declines, your death benefit may also decline.
Cash value is a personal asset. You should include this asset when you prepare a statement of your personal net worth. When you apply for a loan, for example, you should disclose the cash value of an insurance policy as a personal asset. You can also use the cash value of an insurance policy as collateral for a loan request.
The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser.

Small Towns Opt for Terrorism Insurance

Small rural and suburban communities - some with few structures taller than a good-sized maple tree - might be unlikely targets for terrorists, but many of them are protecting their police stations and water towers with terrorism insurance. 
The extra coverage is relatively inexpensive - for a small village it can amount to less than $100 a year - and in many cases it's a standard feature of government insurance pools. But some question whether it is necessary. 
In April, leaders of West Baraboo, a Wisconsin village of 1,200, debated whether to purchase terrorism coverage. 
"If terrorists got this far into the country, there wouldn't be anyone to make the claim anyway," said village clerk Mary Klingenmeyer. But the village board voted 5-2 to pay $87 annually for the coverage. 
"We had quite a few outlying areas laughing at us," Klingenmeyer said. "Maybe we'll have the last laugh." 
James Hamilton, director of pooling programs at the National League of Cities Risk Information Sharing Consortium, said terrorism coverage is a common feature among the league's 34 affiliated state insurance pool programs, which cover nearly 16,000 towns, cities and schools. 
"Even though the chance (of a terrorist attack) may be very minute -- if something were to happen, they don't want to be caught without protection," Hamilton said. The town of Plainfield, Ind., population about 24,000, decided that its proximity to a major highway, an airport and a rail system made coverage worth the extra $1,700 a year, said clerk Wesley Bennett. 
"For $150 a month we felt it was appropriate to get that kind of coverage for the amount of assets we have," Bennett said. 
Wisconsin offers coverage in pool policies 
The state of Wisconsin's Local Government Property Insurance Fund provides terrorism coverage at no extra charge in its pool insurance policies, which cover more than 1,100 Wisconsin public entities, according to Eileen Mallow, Wisconsin's assistant deputy commissioner of insurance. The insured include small villages such as Endeavor, Wis., population 440. West Baraboo is not part of the state pool. According to Klingenmeyer, the town opted to get its insurance through a local agency. 
Mallow said none of the 1,100 pool members have made a terrorism insurance claim. There haven't been any claims in Nebraska and South Dakota either, according to officials who work for pools in those states. 
In 2005, Wisconsin hired a consultant to assess the state's terrorism risk. "We concluded that there is no significant additional risk that we need to charge extra for," Mallow said. 
Jill Dalton, a managing director at Marsh Inc., a global insurance broker, said that 40% of the smaller public entities that Marsh insures purchase terrorism coverage. About 69% of large public entities buy the plans, she said. 
Dalton said the cost of terrorism insurance for a municipality varies, based on factors such as the size of a deductible, a policy's limit and how many policies have been sold in an area. 
Claire Wilkinson, vice president of global issues for the Insurance Information Institute, said a Marsh study last year indicated the median cost of terrorism insurance for a public entity in 2006 was $37 per $1 million of insured value, down from $44 per million in 2004. So a community insuring $80 million of property might pay about $3,000 annually on terror insurance. 
Rates differ based on risk 
Wilkinson said different public entities will pay different rates based on their risk. 
"There are complex issues which go into the rating," she said. "It's not like hurricane risk. Insurers have less experience with terrorism risk and it's very difficult to predict the frequency and severity of attacks." 
Two years ago, Lincolnshire, a suburban Chicago village of about 7,000 people, opted to drop its terrorism coverage. The move saved the village about $6,000, according to Village Manager Robert Irvin. 
A community that suffered losses from a large terrorist attack could qualify for FEMA aid, said Ronald Cuccaro, president and CEO of Adjusters International, a disaster recovery consulting organization. 
Cuccaro said terrorism insurance could help a community that suffered smaller losses in an attack. 
"Let's say there was a small terrorist attack that carried just a few million dollars worth of damage," he said. "That may not be large enough to qualify for a declared disaster." 
Cuccaro said after the 9/11 terrorist attacks, insurance companies began to exclude terrorism protection from their coverage. He said this prompted the Terrorism Risk Insurance Act, which was signed into law in 2002, which he said acts as a federal backstop for insurance companies. 
But insurance doesn't cover everything. Cuccaro said terrorism coverage is specifically defined in policies and generally needs to be an event carried out by a group of people for political purposes. 
"Just because it is exploding doesn't mean it will be covered," he said. 
John Piernot, a retired postal worker who lives in West Baraboo, said he doesn't blame village leaders for making sure the community is covered. But he doesn't feel the village is at great risk. 
"As far as I'm concerned, if the product were offered, I wouldn't buy it," he said. 
Jones reports for The Post-Crescent in Appleton, Wis.

A problem that might make the newly unemployed a little sick

Tracy Coenen
Dec 6th 2008 at 12:00PM

Filed under: Insurance, Health
If your company is closing and you've got medical bills not yet paid by your health insurance, you have reason to worry. The Wall Street Journal is reporting on what happened to the employees of Archway & Mother's Cookie Co., which announced in October that it was closing immediately. The employees quickly went to the doctor, thinking their health insurance would pick up the tab. It did not.

What they did seems logical, and I'd probably want to get my medical needs taken care of quickly too. But in this case the company was self-insured and didn't have enough money to cover all the unpaid medical bills and the company's other debts when it filed for bankruptcy. Workers weren't even eligible to purchase health insurance under Cobra provisions, because when a company terminates the insurance, there is no such option.

There's really nothing the employees can do about their medical costs, as this is just one unforeseen problem lurking amid the economic crisis. I can only offer this advice: If your company announces it is closing or entering bankruptcy, check with human resources about your health insurance coverage before you go to the doctor. Of course, there may be conditions for which you need immediate treatment, insurance or not. But if you've got a medical problem that can wait, it makes sense to find out if you'll still have insurance coverage or if you'll have to look for other options

Health insurance for the daredevil years

Bruce Watson
Oct 30th 2008 at 7:00PM

Filed under: Bargains, Budgets, Insurance, Simplification, Health
My father died when I was 21 and I was hired as a full-time university instructor when I was 28. In the intervening seven years, my health care consisted of one or two visits to a cheap sawbones and a well-thumbed copy of Prescription for Nutritional Healing. Overall, I was fairly lucky: apart from two wisdom-tooth extractions, a case of acid reflux, and a broken hand, I didn't have any problems that vitamins, cigarettes, and a decent exercise regimen couldn't take care of.

While I look back on my twenties as something of a narrowly-averted accident, I also realize that I was in a very large minority. According to Time magazine, 30% of 19-29 year-old Americans don't have health insurance. Luckily, many major insurers, including Humana and WellPoint, have begun offering ultra-cheap insurance plans (Wellpoint's "Thrill-Seeker," "Part-time Daredevil," and "Calculated Risk Taker" plans seem particularly appropriate for this demographic). Beginning at as little as $30 per month, these plans don't really offer much in the way of preventative care, and their deductibles are extremely large; in the case of Humana's cheapest plan, a $30 premium is paired with a $7,500 deductible. 

On the other hand, speaking as someone who definitely dodged the bullet, if I had known about $30 per month insurance, I definitely would have taken it. As it is, I just thank my lucky stars that I didn't need any surgery!

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. While an admitted picker, grinner, lover, and sinner, he's wondering if he can classify himself as a thrill-seeker, part-time daredevil, and calculated risk taker.

Health insurance concept that's worth thanking God for

Sarah Gilbert
Nov 20th 2008 at 7:00PM

Filed under: Insurance, Health
I've been struggling with the decision of whether or not to buy private health insurance now that I'm a freelancer and not an employee with cushy benefits. I have 30-some more days to make the decision before the 60-day magic window closes, and I was just introduced to a concept I'd never encountered: a Christian health cost sharing program called Medi-Share.

The program works like a private insurance company in that members pay a monthly amount and the risk is spread among many. However, the cost is called a "share" and is much less than almost every other private insurer's premium; most families pay around $173 a month. The "catch" is that the organization requires its members to be active members of a church, sign a statement of faith, and (here's the biggy) promise that they don't abuse alcohol or drugs, or smoke (and haven't for the past 12 months).

Sadly, the program won't work for me, as my husband has been flirting with a cigarette habit since he's been in the Army Reserves (darn you military and your tobacco products!). But the concept is brilliant; why shouldn't people only pay for the sins that they, themselves, commit? Our insurance system has the healthiest and most disciplined of us sharing the cost for those who choose to live on Cheetos, Big Macs, and Bud Light. It's hardly a just reward for my miles of biking and long hours making nutritious food for my family that I should have to pay the same amount as a family whose dinner revolves around a drive-through. I don't judge you for your choices: I just don't want to have to pay for them!

I think the healthy-lifestyle medical cost share plan is such a good idea, it should be replicated for those who may not subscribe to the same faith but who commit to some common beliefs about food, exercise, and lifestyle. We can't legislate good health, but we should be able to get rewarded for having it!

Is it worth getting full car insurance on a used car?

Beth Pinsker
Oct 3rd 2008 at 2:00PM

Filed under: Insurance, Transportation, Travel
My husband was washing the dishes last week, and something bad always happens when he does housework. The cops knocked on the door and asked him to come with them. It turns out that a Jeep had lost control going down the street and rammed ours into a parking sign, crushing it from both sides. Nobody was injured, but the other car lost a wheel and a neighbor called the police.

That was a lucky thing for us, because we only had basic liability on our car, which was a 1995 Subaru Legacy wagon. I had not realized this, because my husband takes care of the car (this is not a gender thing, necessarily, but more because he bought the car on his own before we got married and I rarely drive it). If the other driver had vanished, we would not have been covered at all and would have had to take a loss on the car. 

My husband made his choice about the insurance coverage because he did not think the value of the car, especially as the years ticked by, merited the extra payments for comprehensive and collision, which would have covered us for theft, fire, vandalism and accidents. But I was curious to see the actual numbers, and to figure out what we should do on our replacement car, which would be worth a little more at the start. 

What's the actual price difference?
It turns out that the difference between general liability and full coverage is about $60 a month, or $720 for the year. We owned that car for five years, which means we would have paid $3,600, or almost exactly what we got as a payout for our car, plus replacement car seats. So if the other car had run off, we could have broken even. 

On our new car, the difference in payments is about the same $60, and my husband and I have come to the conclusion to go with full coverage, at least at first. I am a big pessimist when it comes to cars. My first car was destroyed in the great state of Texas by a drunk, uninsured driver in a pick-up truck -- I was hit head-on -- and I was lucky to have had full coverage that paid out for my medical bills and lost pay from an extended absence. My replacement car was pummeled for an hour with baseball-sized hail about a month after I brought it home from the lot, requiring more than $1,500 in repair work. I gave up on cars after that (which is the real reason my husband handles all the details). 

The Brooklyn neighborhood where we currently live is hard on cars. We had two break-ins with smashed windows, various dings while parked, and the total loss. There's rarely hail, but lots of snow, ice, rain, dirt and potholes. The chances of something happening to our new used car are pretty good, I think (I hope Geico isn't listening), so my gut is telling me that shelling out a few extra bucks a month will be worth it to us, even if we never file a claim for some of our smaller mishaps.

Auto insurance industry takes the gas money savings from small car owners

Gary E. Sattler
Oct 27th 2008 at 8:00AM

Filed under: Insurance, Transportation
Many drivers of smaller automobiles may be smiling about their fuel cost savings, but their smiles may soon fade when they start to realize that the auto insurance industry is taking a share of the money that they aren't paying for gasoline. Let it not be said that smaller automobiles don't come with a cost trade off. 

An examination of automobile insurance premiums from The Wall Street Journal reveals that the nature of smaller autos makes them justifiably more expensive to insure. For some smaller cars, such as some of the new hybrid models, replacement parts can be difficult to obtain, and labor costs are sometimes higher than for conventional autos. Additionally, hybrid cars can often take longer to repair.
Karen Block, an independent insurance agent in Medford Wisconsin, indicates that the situation is quite basic and easy to understand. She stated: "Smaller cars have statistically higher repair costs." The Wall Street Journal article reports: "A recent study by the Highway Loss Data Institute, an affiliate of the IIHS, found that overall insurance costs for crash damage were higher for 11 of 12 hybrid cars and SUVs than for their gas-only counterparts."

While the owners of smaller cars may be paying higher costs to have their own cars repaired, it should be noted that their premiums for property damage liability may be lower. This is due to the fact that, when compared to larger vehicles in similar collisions, smaller cars tend to do less damage to the things they hit. There is concern however, that this condition may also mean that smaller cars offer their occupants a reduced level of crash protection, which is why I keep myself surrounded by a full sized Chevy pick-up truck, and keep my wife in her well built Jeep SUV.

Stuck in your car lease? Not necessarily.

Tom Barlow
Nov 19th 2008 at 1:00PM

Filed under: Technology, Transportation

If you took out a car lease only to find that, with a change in your circumstances, your can no longer afford your lease , you may want to check out LeaseTrader.com. The ten-year-old firm is in the business of matching drivers in the market for a short-term lease with those looking to get out of an existing one. For its trouble, the company collects a fee, of course. 

The process, which has been OK'd by almost all the car manufacturer's financing departments, works this way:
Person A, the lease holder, posts the vehicle and details of the lease on LeaseTrader 
Person B, who wants to pick up a vehicle on a short-time lease, selects yours 
Person B's credit-worthiness is confirmed 
The vehicle lease is transferred from Person A to Person B. The buyer is not required to pay an down payment to the leasing company. 
Person A pays LeaseTracker $79 for the service and $149 for the transfer 

While the average time between posting and transfer is 3-7 weeks, according to a LeaseTrader exec quoted in Advertising Age, the site is hoping to drop that significantly with a new marketing campaign. LeaseTrader claims that it has seen demand grow threefold as nervous drivers look to shorter term leases in an unstable economy. 

A couple of caveats, however: people who find themselves with burdensome leases are often people who also don't understand how to negotiate favorable deals, so the lease you assume might be on the high side. You may also have to include a wide swath of the U.S. to find enough candidate vehicles; near my home, there were almost none. Extending my search to 1,000 miles found a number of them, but retrieving a vehicle from that distance would cost me something in time, mileage or shipping.

If you're looking for to get out from under your lease, or looking for a nice ride for a short commitment, this seems like an interesting alternative to consider.

Tuesday, December 2, 2008

Motor Vehicle Accident Insurance Claim Guide

Your “Motor Vehicle” can be a truck, car, motorcycle - - you name it! If it’s powered by a motor and has one, two, three, four (or even more) wheels this “Guide” is for you.

The information below is a bare-bones “Guide” for those who have had such a motor vehicle accident. It details the basics of how one should with their property damage and/or personal injury claim.

AFTER IMPACT CHECKLIST

We heartily suggest you make a copy of this "Impact Checklist" to be kept handy within the confines of your motor vehicle. A “Guide” to refer to so you’ll be certain, should an accident take place, that you’ve covered everything.

Other than the fact that one must obtain from the other operator, both their drivers license and motor vehicle registration information, you should also proceed to do the following:

IMMEDIATELY MAKE SPECIAL NOTE OF: Names and addresses of eye witnesses. And later the investigating police officers name and badge number. WEATHER CONDITIONS: Snow, rain, fog, mist, sleet, etc. ROAD SURFACE: Dry, wet, slippery, icy, etc.IMPACT AREA: City, suburban, business, wooded, etc. VISIBILITY: Sunny, cloudy, dusk, night, moonlight, etc. (Was the sun in the other driver’s face)? TRAFFIC CONTROLS: Were there overhead lights? Posted speed limit signs? Stop or warning signs? Hospital or school zone signs? CREATE A DIAGRAM: Driving area: Flat, crowned, straight, curved, macadam, asphalt, concrete, cobblestone, dirt, etc. Indicate the width of street. Show the location of impact, gouge and/or skid marks. CONDITION OF MOTOR VEHICLE THAT STRUCK YOU: Age and general overall condition. Is their state inspection sticker displayed and up to date? Were chains or snow tires needed? AS SOON AS POSSIBLE RETURN TO THE SCENE AND SNAP PHOTOGRAPHS: It’s most important to take pictures of: Skid or gouge mark’s on the road surface plus the damage to both vehicles. PHOTOS OF YOUR BODILY INJURIES: It's crucial to the ultimate value of your claim to snap a multitude of colored photos (up close and from different angles) of your bodily injuries - - especially all black and blue marks or bruises.

INSIGHTS INTO HANDLING YOUR CLAIM (There Are Six Areas You Must Be Familiar With) 1. Out-Of-Pocket Expenses 2. Lost Time From Work - Lost Wages 3. Property Damage Losses 4. What Your Medical Doctor And/Or Chiropractor Reports Should State 5. Medical Payments Coverage 6. What To Do If An Adjuster Refuses To Cooperate

You Should Go Into Detail Regarding These (Below Listed) Six Areas:

(1) OUT-OF-POCKET EXPENSES:These are expenses that can be measured in definite sums of money. They are the foundation of the calculations used to award damages (including that often great and extra amount paid to you for your “Pain and Suffering”) regarding any financial loss flowing directly from the injury you may have sustained.

MEDICAL EXPENSES: Obtain all bills and services rendered. (Prior to their being sent out, you have ever right to ask for and read the crucial Final Reports regarding your physical condition from your Doctor, Chiropractor, “Medical Specialist” and/or Dentist).Medical Expenses Typically Include: Ambulance ~ Emergency Room ~ Hospital or Clinic ~ Laboratory Fees and Services ~ Diagnostic Tests: (X-rays and/or CT Scan) ~ Registered or Practical Nurse Fees ~ Medicine and/or Prescription Medications ~ Prosthetic Appliances or Surgical Apparatus (Canes & crutch, etc.) ~ Physical Therapy ~ Ace Bandages, Gauze & Tape ~ Heating Pads ~ Creams, Ointments, Balms & Salves. As you read them make sure these Medical Reports include the length of time of your “Total Disability” and/or your “Partial Disability”. These are of enormous value because they justify the often HUGE, extra payment made for your “Pain and Suffering” . (Plus this information will also prove your claim for Lost Wages).

NON-MEDICAL DAMAGE EXPENSES. These include: Lost Wages and Earnings ~ Lost Vacation Time and/or Sick Leave ~ Travel Expenses: (Transportation costs incurred getting to and from The Doctor and/or Hospital, etc.) ~ Household Help During Disability ~ Child Care During Recuperation.

(2) LOST TIME FROM WORK - - LOST WAGES - - YOUR "LOSS EARNING CAPACITY": The weeks, hours and/or days you were unable to work (thus the money you may have lost) is added up and documented on company letterhead. You’re often entitled to compensation for “Lost Time and Earnings” even if you have no actual loss of money ! Such as, for example, if your salary is paid by some other insurance coverage you may have or by taking sick leave or some other similar arrangement. It doesn’t matter if you're employed full time, part time, self-employed, own your own business, retired, unemployed, or a housewife not employed outside the home, you should keep a written record of all household help and/or child care needed during your disability period.

All of these constitute an element of your “SPECIAL DAMAGES” mainly "Lost Wages". Insurance companies usually don't view your time away from work (because of an injury) as “Lost Time And Earnings” but as “Lost Earning Capacity”. In most states one is entitled to compensation for lost time and earnings even if they have no loss of money. For example, when your salary is paid for by another insurance coverage you have or by taking sick leave and/or some other similar type of arrangement. There are specific situations to be considered and called to the forefront when it comes to being employed either full-time or part-time. More detailed information (regarding these above stated area’s of your loss) are found in CHAPTER FOUR “Damages” within the book AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM.

(3) PROPERTY DAMAGE LOSSES: “AGREED COST TO REPAIR”: This figure has been negotiated between your damage repair person and the insurance adjuster. Be sure you know (and possess a written copy of) exactly what that figure is.COLLISION: There's usually a deductible. Read your policy. (If you’re not at fault you should eventually be able to get this money back).PROPERTY DAMAGE LIABILITY: Protects you for damages you do to the property of another (i.e. his or her trees, lawn, shrubs, mailbox, etc.) EXCLUSIONS: These are stated in your policy. A good rule of thumb is, “If it’s not excluded, it’s covered”. Read your policy closely to discover your exclusions and how they apply. TOTAL LOSS: A “Total Loss” is when the motor vehicle damage exceeds the value of the vehicle, as stated within all of the up-to-date and “Official” Property Damage books and/or documents. OTHER PROPERTY DAMAGE LOSSES: Clothing, jewelry, watches, eye or sunglasses, etc. You can also collect for your (or any other individuals) personal property which happened to be in the car and was damaged. (Be sure to have written proof of the cost of each item damaged plus the date it was purchased). Never forget: You’re entitled to be reimbursed for any charges you may have incurred for towing, storage and/or substitute motor vehicle rental, or for that matter - - any other alternate transportation.

The above is a very brief review. For more in-depth information read CHAPTER FIVE: PROPERTY DAMAGE found in AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM.

(4) WHAT YOUR MEDICAL DOCTOR AND/OR CHIROPRACTOR REPORT SHOULD STATE: Each “Injury Evaluation Factor” should be clearly stated within each of your final Medical Reports. For example: That your disability is solely the result of the accident. If there were any pre-existing conditions aggravated by your injuries? What treatments were administered and for what duration? What medications were prescribed, in what amounts and for how long? What symptoms or medical problems were such medications meant to relieve? Were there any adverse reactions demonstrated? Ask to read them before they're sent to the adjuster so you're sure it explains the nature, plus the extent and frequency of the pain that an injury, such as yours, will likely cause.

PROGNOSIS: This is the clearly stated information (regarding your personal injury progress) and should include: The part played by a pre-existing condition, if any? Their prediction of any possible future temporary disability/impairments? Does the individual attending you anticipate any further or future treatments? LENGTH OF YOUR “TOTAL” DISABILITY: Why? Because it's so important (when it comes time to settle) this is clearly stated in weeks and days. LENGTH OF YOUR “PARTIAL” DISABILITY: Again (and for the same reason as above) this too should be clearly stated in weeks and days. (Specific details, regarding both “Partial” and “Total” Disability , and the incredible value it provides for you in your claim, are found in CHAPTER SIX: YOUR BODILY INJURY).

(5) MEDICAL PAYMENTS COVERAGE: If you have this coverage in your motor vehicle policy, it will pay (up to the limits stated) for all medical bills arising out of the accident - - regardless of who’s at fault! (You must read your policy carefully because the “Who”, “Why” and/or “How” of this often differs).

A WORD ABOUT HEALTH INSURANCE PLANS: In certain instances, it may be possible to have your medical bills paid and yet avoid any repayment by tapping into your health insurance coverage, or some other plan you may have. (Yes, this means, under certain circumstances, you may be able to collect twice for the same medical bills)!

(6) WHAT TO DO IF THE ADJUSTER REFUSES TO COOPERATE? These Are Your Usual And Routine Choices: a. Threaten that you're going to obtain the services of a lawyer to represent you. b. Go over the adjuster’s head. c. Resolve your loss in Small Claims Court. d. Contact the proper people (working through the State Department of Insurance) implementing the time honored principle of “Good Faith” vs. “Bad Faith”.

Outside Pressures On The Typical Insurance Adjuster

Insurance adjusters are not without outside pressures they must deal with every day of their work life. It would be advantageous for all readers to be aware of the most important of these because they could put money in your bank.

The first of these is your State Department Of Insurance. Every state has a Department, or Commissioner, or Bureau of Insurance that overseas the antics of all Insurance Claims Adjusters and their superiors in that particular state. Each has a Consumer Complaint Division. If the adjuster you’ve been dealing with has refused to make any offer at all, has engaged in what you consider to be unethical conduct, or has made what you believe to be a ridiculously low offer, you have cause for a complaint.

The mere mention of a complaint to the State Department of Insurance may bring the adjuster around to making a better offer. Adjusters would rather not have to deal with a complaint and they positively don’t want copies of them ending up in their personnel file !

Your complaint to the State Insurance Department will accomplish several things. First, his boss will now become aware that there’s a claimant who intends to do whatever it takes to obtain some positive settlement dollars. That will often inspire that person to take a closer look at your case and come up with a better offer. Also, if indeed you write to the Consumer Complaints Division, it will evolve into what’s always a costly effort because a complaint with the State Insurance Department will add an additionallayer of work, supervised by an extra contingent of personnel. When it’s realized this will likely come to pass they’ll try harder to get rid of you and settle your claim.

The vast majority of insurance adjusters dream of one day being promoted to a higher position within the company they work for. They're acutely aware of the fact if their personnel file has correspondence flowing into it from claimants they've handled(plus copies of the letters which have been sent to the insurance commissioner) and those will, somewhere down the line, be read by one of his companies executives. In many instances this will be a man who doesn’t want a “Problem” claims employee spluttering, splashing and crashing about his office area causing headaches and extra work within the framework of that particular executive’s command. The adjuster is fully aware that such complaints will keep him, out on the road forever,and will surely prevent him from moving up the corporate ladder.

OTHER CRUCIAL ISSUES THAT THE ADJUSTER IS AWARE OF

When it comes to the reality of the way things work in the actual, daily, experience of personal injury claim negotiations and settlement, is often vastly different from the stipulations found in the “Formal law”. That is, legal theory, as it’s written and allegedly supposed to work. What this means, simply stated, is: Adjusters can settle a case, whether their decision to do so is based on “The Law”, or not.

In the real world of Personal Injury settlements a “Compromise” (one which often has little and often nothing to do with "The Law") is the order of the day. It’s commonly accepted among those is the business (because that’s what makes their work life so much easier) that in any given case there’s almost always a likelihood of negligence on both sides, rather than just one. What this boils down to in practical terms, is this: Irregardless of the law practically no claim is without merit or totally lacking in value - - especially if the “Value” is simply to “get rid of it”. QUESTION: "How does Dan Baldyga know this to be true?" ANSWER: "Because he was an Insurance Adjuster, Supervisor, Manager and then Trial Assistant for over 30 years. He's been there, and observed that."

Although it’s never expressed to him “officially” every adjuster quickly learns, should your case go to trail, compromise will usually be the order of the day, even in cases of questionable liability . This fact alone gives him plenty of room to make a compromise settlement before your case ends up in his Defense Attorney’s hands where such a move will usually take place anyways! Why will this come to pass? Because the costs of preparing for(and then proceeding into)a courtroom battle will skyrocket.

Being aware of this is always bubbling and boiling in the gray matter between every adjusters ears. If there’s any question whatsoever (regarding who was at fault in the accident you were involved in) don’t ever give up. Keep pounding away! When faced with a determined claimant who’s willing to wait and haggle and refuses to go away, the chances are the adjuster will eventually make an offer.

This comes to pass because the adjuster(especially if your claim has some value) doesn’t want it to end up as a complaint at the State Department Of Insurance. Plus he knows you’ll be made, a settlement offer, somewhere down the line, anyway! So, better he settle it now, before the cost of defending it gets blown out of proportion, later.

In order to continue to look good (especially to those who watch their progress and the way they handle the outside pressure’s that haunt every one of them)insurance adjusters - - who want to climb their corporate ladder to success - - must be very cagey individuals who must work hard to please those they work for. For you to understand this will most assuredly be to your financial advantage.

Copyright (c) 2003 by Daniel G. Baldyga. All Rights Reserved

DISCLAIMER: This insurance claim article, OUTSIDE PRESSURES ON THE TYPICAL INSURANCE ADJUSTER is to help people understand the motor vehicle accident claim process. Dan Baldyga makes no guarantee of any kind whatsoever, NOR does he purport to engage in rendering any professional or legal service, substitute for a lawyer, an insurance adjuster, or claims consultant, or the like. Where such professional help is desired IT IS THE INDIVIDUAL’S RESPONSIBILITY to obtain it.

Six Crucial Insurance Claim Possibilities

There are DOZENS of insurance claim possibilities which will increase the dollars awarded you in the settlement of your personal injury insurance claim. Some of them rarely see the light of day but some do. The six I’ve listed below are crucial for you to be aware of as you prepare to go to war with Adjuster Henry Hard-Nose regarding the value of your loss. They are:

(1) EMOTIONAL REACTIONS TO YOUR INJURY: When it comes to placing a dollar value on the “Emotional Reaction” of an injury one enters into an area where most individuals, even experienced claims adjuster’s and Legal Beagles, are at a loss.

Four often ignored “Characteristic Symptoms” can be: Confusion, Anxiety, Depression and Denial. (“Denial”, that is, regarding the seriousness of your injury and the constant pain you feel. This usually comes to pass when one refuses to complain anything is seriously wrong, convincing themselves it will work itself out).

If any of the above “Emotional Reactions” (which are a direct result of “Characteristic Symptoms“) becomes a reality it would be wise for you to see a shrink. Maybe you won’t immediately identify this as something you need to have checked out but the person you climb into bed with probably will. When she tells you you‘re not functioning (between your ears) all that well, listen up! If that’s what you’re told you should swallow hard and obtain an expert’s opinion. You may consider yourself a muscular "Power To Be Reckoned With" but you’re not Superman so, talk to a specialist, explain what’s happening, and let it all hang out.

Once you’ve been discharged, get that specialist’s written Medical Report and hand it to Hard-Nose, along with the medical bills for your treatment. Is that legit? The answer is absolutely, yes! Can he refuse to accept them and suggest they add no value to your claim? The answer is absolutely, no!

(2) EMOTIONAL DISTRESS: Emotional distress is legitimate "Pain and Suffering" and you should be compensated for it. For example, problems that may develop over the effects of an accident within the area of your work or business, or perhaps interfere with your sex life! Whatever it is that’s causing you problems you should see a specialist. Keep going back to see him for as long as it takes to return to normal. At the end of his treatment, when he's finally discharged you, ask for and obtain his written report. Present that to Adjuster Henry Hard-Nose along with the specialist’s bill for their services.

This is a legitimate expense and it positively gives your personal injury more value !

(3) SECURING COMPENSATION FOR LIFE DISRUPTIONS: If your injuries caused you to miss some special training you had arranged to take advantage of, you'll probably, at some point, want to make that time up. The difficulty you may experience in making up that missed time (or perhaps never again being able to obtain it) has the potential to increase the value of your settlement. To achieve this you must obtain written proof and present it to Adjuster Hard-Nose.

Also to be taken into consideration is a vacation you may have been unable to take, or some recreational event’s in which you could not participate in and/or a missed special event, like a wedding or a reunion, etc. All of these, properly documented, add value to your claim because they are specific examples of the inconvenience and discomfort you've endured as a direct result of your injury.

(4) YOUR AGE: In the evaluation of an individuals "Pain and Suffering", age is always a factor because the older you are the longer the periods of Total or Partial Disability will be. This will affect the course of treatment plus the length of time of the "pain killers" you’ve been ordered to take. For example: Over age 50 disability is about 10% to 15% longer, over age 60 disability is about 20% to 30% longer, over 70 disability can be 35% to 45% longer and over 75 disability can often be 50% and longer.

(5) PRE-EXISTING MEDICAL PROBLEMS: Also pre-existing conditions are factor’s that must be considered: For example: Arthritis, Sugar Diabetes, Pervious Injuries and/or Previous Operations that have left you with on-going problems, etc.

Whatever that pre-existing situation may be you should look to your attending physician for advice. Don't avoid discussing this with him. If any doubt exists you should insist your doctor refer you to a specialist for consultation. If your physician is legit he'll agree. If he doesn't than kiss that goodie-two-shoes "goodbye" and go dig up a specialist on your own. It's your body and there's only one to a customer!

(6) ONE THING YOU SHOULD NEVER FORGET IS THAT THE VISIBLE DAMAGES TO YOUR MOTOR VEHICLE CAN VERY OFTEN PROFOUNDLY AFFECT THE AMOUNT OF MONEY YOU'RE EVENTUALLY PAID.

If your vehicle was badly smashed, that goes a long way proving that your injuries were sever and therefore painful. You must snap photographs of your motor vehicle. Shoot a couple rolls of colored and also black and white (black and white because in some instances colored photographs cannot be entered as evidence in a court of law).Take them from different angles and various distances. Like for example, 30 feet away, then 15, then right up close.

Make two sets. One for you and one for Hard-Nose. Blow them up into 8X10 glossies and present them to him. Both the size of your repair bill and those photographs will go a long way towards proving two important points: First, that you know what you're doing and second, that the injuries you received from that god-awful impact (and the long period of pain, suffering and discomfort you‘ve had to deal with) - - if and when viewed by a judge or jury - - are proof positive of what your injury caused your body to endure.

DISCLAIMER: The only purpose of this article SIX CRUCIAL INSURANCE CLAIM POSSIBILITIES, is to help people understand the motor vehicle accident claim process. Neither Dan Baldyga nor ARTICLE CITY make any guarantee of any kind whatsoever; NOR do they purport to engage in rendering any professional or legal service; NOR to substitute for a lawyer, an insurance adjuster, or claims consultant, or the like. Where such professional help is desired it is the INDIVIDUAL'S RESPONSIBILITY to obtain said services.

Insurance Claim: Collecting Your Lost Wages

A couple months ago you were toolin' on down the avenue, minding your own business, when out of nowhere, this fumbling, stumbling man by the name of Freddie Fuddle flew through a Stop Sign and plowed into you with a gigantic, rip-roaring, screeching broadside. You were wearing your seat belt but it was still a thundering crash that wrenched and whipped you around the inside of your motor vehicle something fierce!

Now, after a long recovery period, Fuddle’s carrier, Granite Mountain Insurance is clamoring to close the case and they've assigned Claims Adjuster I. M. Strong, to handle your case. You and Strong are sitting at your kitchen table talking about your settlement dollars. It turns out he’s got some hang-up’s regarding your lost income. Well, here are some things you need to know:

Lost wages are one of the most important element's of your damages. Listen to me carefully when I say, "You should not think about the days you missed from work as Lost Time and Earnings. It's not Lost Time and Earnings - - it’s Lost Earning Capacity“

You ask, “What‘s Lost Earning Capacity all about? I thought I could only collect for my Lost Income?” The answer to that is, “In many situations you can claim lost income EVEN IF YOU HAVEN'T LOST ONE SINGLE PENNY “. For example, this can happen when your salary is paid because you've elected to apply for the sick leave that‘s due you, or because of an Accident and Health Policy available for you to take advantage of, or some other such arrangement.

In most instances - - even if you were paid while out of work - - you should still get that money routinely identified as Lost Wages. Why? Because that's your Lost Earning Capacity. Your Lost Earning Capacity is what’s called a Compensatory Damage. Don't let Strong swindle you out of that Compensatory Damage. Even if you’ve received an income, in some other way, you're still entitled to it. Strong will do everything he can to take advantage of you, especially when it comes to getting paid for your Lost Earning Capacity. During the course of every settlement negotiation he gets involved in, he‘ll try that tactic on for size, and it’s mind-boggling how often he gets away with it.

The typical statement made at that point, by the unsuspecting claimant is, “Hey, I understand I’m to be paid for my lost wages.”

Strong answers, “You collected $200.00 a week from your Accident and Health Policy didn’t you?”

“Yeah, but my average weekly income last year was $275.00 a week.”

“Okay”, I. M. Strong flashes a well practiced, winning smile, that tells you he’s a fair insurance claim adjuster, when in his black heart, he knows he isn‘t, “We’ll pay you that $75.00 a week difference. Let’s see, you were laid up and unable to work for 5 weeks. 5 times $75.00 is $375.00. Don’t worry my friend, I’ll see to it you’re paid that $375.00.”

“Wow!” you think, “that’s terrific !.” You’re thrilled to death with this great turn of events.But what you don’t know is that the $200.00 a week you’ve received from your Accident and Health Policy has absolutely nothing to do with your lost income.The bottom line is that Smart has just cheated you out of a thousand dollars! And, worse than that, the $275.00 a week income you lost (for a total of $1,375.00) would have (in a court of law) given your case $4,000.00 to $5,000.00 more value in settlement dollars.

DOCUMENTING LOST INCOME: Ask the company you work for to write a letter on their official stationary declaring your gross salary income and the days you lost from work.

GROSS PAY VS. NET PAY: You should collect the "gross" wage's you lost, not the "net".

TOTAL DISABILITY and/or PARTIAL DISABILITY: For every week of Total Disability (a fact which must be stated in your doctors Final Medical Report) you should use your gross weekly income - - even if you were paid! (For every week of Partial Disability your doctor states in that Final Medical Report, you have the right to claim a substantial percentage of your income, during that period, even if you didn't lose any).

Because the following five points give value to your claim be ready to talk with Smart about and, wherever possible, prove:

(1) If your work demands heavy labor and/or lifting. (2) If you lost any vacation time or sick leave. (3) If there was any possible loss of money you could have earned in the future - - either with your company or maybe other income you've got bubbling and boiling on the side. (4) If you had to forgo any bonuses. (5) If you lost an opportunity that would have led to a better job.

If any of the above five points are true than your claim is worth more money!

THE CRUCIAL MEDICAL REPORT: The Granite Mountain Insurance Company and Adjuster I. M. Strong know that the longer your recovery period, the greater your "pain and suffering", therefore the higher the settlement value of your bodily injury claim. Your Chiropractor or Attending Physician must also note this in his Final Medical Report. Tell him to state exactly how long it will be, before you can get back to routine activities like golf, hunting, fishing and/or rockin' and rollin' with your lady friends.

As long as you have problems keep right on going back to see your doctor, again and again, even if it drives the poor bugger nuts! Do this because the fact that your records show a visit to him, four, eight, or twelve weeks after the accident, proves your injury needed constant attention, therefore you were unable to work. Also because, when you visit your doctor and tell him there's no let-up of your pain, discomfort, stiffness or immobility - - those continuing problems must be written into the Medical Report he'll provide for you when you've finished treatment. That's the one you'll hand to Adjuster Smart when the two of you begin to talk turkey. As he reads it you’ll watch him frown, then blanch as that cocky smile disappears from his face. When you see him do that you‘ll know, "ya got him"!

DISCLAIMER: The only purpose of this claim tip is to help people understand the motor vehicle accident claim process. Neither Dan Baldyga nor Article City make any guarantee of any kind whatsoever; NOR do they purport to engage in rendering any professional or legal service; NOR to substitute for a lawyer, an insurance adjuster, or claims consultant, or the like. Where such professional help is desired it is the INDIVIDUAL’S RESPONSIBILITY to obtain said services.

Accident Factoids

Accidents, personal injuries and insurance claims are here to stay. No matter how far into the 21st Century American’s elect to drive (unless by the beginning of the 22nd Century we’re all zipping around in our own personal space ship) motor vehicle accidents will continue to pile up; with no end in sight!

There are more than 200,000,000 licensed drivers in the United States. (As of 2003 we’re close to a yearly 7 million motor vehicle accidents, involving well over 3.5 million injuries).
Car accident crashes cost society an estimated $4,900 per second. That’s about $25,000 in the time it took to read this fact.
Current records show that most American driver’s will have a near motor vehicle accident 1 to 3 times per month and will be in a collision of some type on the average of every 5 to 8 years plus these records also indicate that licensed teenagers are 22 more times likely to get a speeding ticket than those who are 65 years of age or older.
In 1896 there were only four cars registered in all the United States. Two of them collided with each other in St. Louis.
By the year 2025 there will be 33 million people 70 years or older in America. This segment of the population will be growing 2.5 as fast as the total population. They will make up the largest percentage of the “turning left” and “rear end” accidents. Slowly but surely Senior Citizens have developed a higher accident ratio than teenagers. (This will, in time, seriously impact the typical Senior Citizen’s pocketbook). And also, by 2025, the total costs for motor vehicle accidents in the United States will exceed 450 billion dollars.
The world’s most solitary tree is located at an oasis in the Tenere Desert in Central Africa. There’s not one other standing tree within 31 miles. In 1960, it was smashed into by a truck.
Up-to-date statistics clearly reflect that 1 out of every 5 Americans are involved in an alcohol-related car crash at some time in their lives and the day in which motor vehicle accident injuries occur most often is Saturday. Sunday is second.


FIVE CRUCIAL MEDICAL DEVELOPMENTS THAT HAVE SLOWLY BUT SURELY COME TO PASS. THESE WILL SERIOUSLY (AND FOREVER) IMPACT THE VALUE OF PERSONAL INJURY CLAIMS IN THE YEARS TO COME:

Records prove that a motor vehicle accident of as little speed as 5 MPH can produce a “whiplash-type” injury.
The symptoms arising from an injury sustained in a motor vehicle accident do not necessarily present themselves immediately following an accident.
Medical research and clinical experience have accumulated enough information to demonstrate that the delay of an injury symptom is the norm.
Studies have established that the delay of a symptom does not eliminate the possibility of severe injury.
It’s been proven that individuals can continue to be symptomatic for many months (even years!) after a motor vehicle accident. In addition approximately 75% of them remain symptomatic for a minimum of 6 months after the accident. (And current up-to-date statistics reveal that between the first and second year after an accident has occurred over 20% of those injured actually have their symptoms worsen).

Copyright (c) 2003 by Daniel G. Baldyga. All Rights Reserved

DISCLAIMER: The only purpose of this article, MOTOR VEHICLE ACCIDENT FACTOIDS has been created to help people understand the motor vehicle accident claim process

Dan Baldyga makes no guarantee of any kind whatsoever; NOR to substitute for a lawyer, an insurance adjuster, or claims consultant, or the like. Where such professional help is desired it is the INDIVIDUAL’S RESPONSIBILITY to obtain said services.

How To Negotiate A Settlement With An Insurance Claims Adjuster

You and I. M. Strong, the adjuster from Granite Mountain Insurance, are sitting at your kitchen table in an attempt to settle your motor vehicle accident claim.

Strong is all wound up and on the offensive, rambling on and on about how your injuries weren't serious. His typical pitch usually goes something like, "Look, I've been at this a long time. I've talked to people like you, day in and day out, for over twenty years. People who've gone through exactly what happened to you, with the same sort of claim as yours. Sure, you had a period of discomfort but your so-called injuries were routine. Believe me when I tell you they aren't worth much."

You’re stunned. You can't believe what Strong is trying to pull. You say, "I’ve been miserable! There was no way I could get back to work because of the pain in my neck and back."

Strong shift's in his seat and a victorious look (one that says he knows it all) begins to march across his face. At that point he predictably states, "Look, I can tell you, after handling thousands of cases like yours, that the discomfort you may have had, for a couple of days at the most, are relatively minor. They don’t even come close to justifying the three week’s of work you lost and the disability you and your doctor are claiming".

Now you're thunderstruck! He smiles to himself and comes at you from another angle, "I've seen thousands of cases like yours and I've had more than my share of exposure to personal injury claims, examinations, doctor-talk and recovery - - the whole nine yards. I've seen physical trauma at its slightest and its worst. Any judge or jury would know, once they heard about your so-called ‘injuries’ that your physical problems were almost non-existent".

He'll take a minute to let that sink in and then he'll attempt to sway you even more by telling you he can prove your time lost from work was not compatible with the injury involved. He'll hint around about some "independent information" he's supposedly gathered from your neighbors and/or business associates, which indicate you’ve been involved in "very active" physical activities since the accident.

Once he lets that one sink in he'll ramble on about the "independent examination" the doctor hired by Granite Mountain executed, telling you, with outrageous confidence, that his doctors Medical Report states there was little, if anything, wrong with you. Then he’ll surely try this one on for size: “My doctor is a professional .The only people he ever sees are those who’ve been in motor vehicle accidents. That’s what he does all day long, check out personal injury claims like yours. His report clearly states your physical problems were almost non-existent”.

He hums a happy tune to himself as he observes the amazement marching across your face and that drum beat he’s heard so very often begins to pound away within the gray matter between his ears: Boom/Boom/Boom, declaring, “I gotcha!, I gotcha!, I gotcha!, I gotcha!”

If you let Strong get away with that than his attempt at downgrading your disability will have been successful. As a way of "proving" what happened to you wasn’t serious he’ll describe your “so-called injuries” with fancy medical language and then compare them to the more extreme types of personal injury problems or conditions he's dealt with in the past. The implication being yours were obviously minor and have little, if any, value.

At that point he'll read the statements and opinions in your own attending physicians Medical Report in such a way which, if not read properly, he'll insist proves, “You may have been a little sore from a slight injury but it clearly states you certainly didn't have any serious physical problems“. (You can bet every dollar in your wallet that he’s made that statement several thousand times)!

You're quickly discovering that neither Adjuster I. M. Strong nor his supervisors at Granite Mountain Insurance are going to be fair. They're out to take advantage of you. That’s the name of their game and that’s what they get paid to do. Question: Is that really true? Answer: Yes, it’s really true. Take it from Dan, I was on that firing line for 30 years!

From that point on you shut down. You be the listener. Let him babble on. When he's finally done, you say, "Your points about my injuries are very interesting. I'd like to discuss them in detail with my doctor“. Pause and then add, “We'll call this off for now while I go back and consult with him."

Before he answers you should get up, smile, point towards the kitchen door and bid him "Goodbye". If he balks, sneak a peek at your watch, tell him you're late for another appointment and insist your meeting is over. He'll have no choice but to leave.

If you do that here's what you'll have accomplished:

(1) You'll have seized the bargaining "momentum" and control from the adjuster and, if you remain adamant he'll never get them back.

(2) Served notice on him that it's you, not he, who will now call the shots in the negotiation "Power Game" he's been playing.

(3) Impressed the adjuster that the settlement will be done on your terms, not his.

You may ask: Okay, I threw the adjuster out and let him politely but surely know I’m not going to buy into his nonsense. So, when this all gets played out, what have I accomplished?

The answer is: I. M. Strong is aware you‘ve not bought into his pitch and in his secret heart he perceives that reality. For those in the home office (so as to know exactly where they stand) his instructions have always been that everything that passed between the two of you is placed into the report’s he continues to send in, regarding the settlement talk’s he’s been having with you. So, the fact that you’re not buying his story, will go into your file to be read by that adjusters superiors.

Once they do they’ll have no choice but to conclude that you’re no pushover!

You’re going to stick to your guns because you’re right and the Medical Report your attending physician executed for Adjuster Smart is legit. You know that both your “pain and suffering” and the length of recovery from your injuries, has been clearly stated.

Smart has correctly assumed that you’re not accepting his usual pitch, filled with mumbo-jumbo nonsense, yet so often works. It’s beginning to dawn on him if he doesn’t change his tactics you’re going to hand you case over to an attorney and his superiors at Granite Mountain won’t be dancing for joy should that come to pass.

Wait five or six weeks then call Smart and ask him to come back to talk some more. I flat out guarantee you the next time you meet the power will have shifted into your corner and you'll never again hear him attempt to minimize your injuries. That often comes to pass because he’s received this typical six word, one line memo, from his supervisor at the home office, “Settle this one and move on”.

Granite Mountain will have reached the point where they’re satisfied to pay and get rid of you. Why? Because personal injury claims continue to pile up and clog their incoming pipeline. They’ve got a lot of other unsuspecting prey to trap and shoot and it’s clear you're an individual who’s too wise, too tough and too difficult for them to fuss with any longer.

DISCLAIMER: The only purpose of this claim tip is to help people understand the motor vehicle accident claim process. Neither Dan Baldyga nor (name of magazine/newsletter and/or web site) make any guarantee of any kind whosoever; NOR to substitute for a lawyer, an insurance adjuster, or claims consultant, or the like. Where such professional help is desired it is the INDIVIDUAL’S RESPONSIBILITY to obtain said services.

Insurance Adjusters How They Work And How They Think

Here comes the insurance adjuster. Is he overly friendly? If so, watch out! It’s OK to be hospitable. Be good-tempered and cordial - - but beware! Never forget he’s paid to save his company as much money as he can. That’s the name of his game.

DON’T SIGN ANYTHING: Don’t overestimate the good will of the adjuster. They’re trained to investigate accident cases in such a way, if at all possible, to make their insured look good. Many unsuspecting individuals fall prey to the adjuster who seeks to protect his company’s pocketbook at the expense of a legitimate claimant.

If a company calls you and suggests they take your statement over the telephone, tell them you would prefer to meet with an adjuster. Don’t agree to dictate a verbal statement into a tape recorder over the phone, and certainly not when you’re in the presence of an adjuster. Don’t sign a statement when you meet with him. Whatever the circumstance may be, advise whomever you’re dealing with that you’ll be more than willing to provide a signed statement, after your claim has been settled.

HOW TO PROCEED WITH THE ADJUSTER: Be pleasant, but firm. No matter how much in the wrong the person is that hit you, no matter how they acted at the scene of the accident, and no matter what they may have verbalized to or at you, don’t take it out on the adjuster. It’s not the adjuster’s fault if his insured is an idiot.

You must never underestimate the importance of the adjuster’s impressions and conclusions, all of which go into your file. What he feels and reports about you have a great influence on the final disposition of your claim. If he likes you that’s money in the bank. On the other hand, if he gets upset with you he has the ability to twist the facts to make you look bad. Once that’s been done, it will be set in cement, go into your file and, without you’re ever being aware of it and haunt you to the last dollar of your settlement.

THE ADJUSTERS CLAIM LOAD: The job performance of insurance adjusters is judged not only on how little of the company’s money they spend in settlements, but also on how quickly they settle the claims assigned to them. They’re constantly under pressure to settle your claim; to get rid of it and move on. The adjuster will never tell you, but the weight of their caseload comes down on your side of the scale. It’s an advantage people are never aware of.

THE ADJUSTERS SETTLEMENT AUTHORITY: The Adjuster’s authority to settle claims on their own is restricted on how much experience they have. For a less experienced adjuster, perhaps $5,000 to $10,000, but for a more experienced adjuster, their settlement authority may go as high as $20,000. When bigger bucks are involved they usually have to be given permission to settle the case from their immediate supervisor.

THE BOTTOM LINE: Don’t let a sweet talking insurance adjuster manipulate you into feeling good about your relationship with him and the eventual outcome of your claim. In the vast majority of instances that’s not the way you should play the game because if provided with the opportunity, they’ll almost always take advantage of you. That’s a fact of life. Know and understand that they’re only doing their job. Their assignment is to save money for the company who signs their paychecks - - no matter what it takes.

If you have a legitimate claim stay cool and understand what you’re up against. Don’t be impossible to deal with, but remain steady. Remember that the adjuster wants to look good to his company. He doesn’t want your claim to end up in court, plus he wants to reduce his caseload. Be patient. At the end of the day, after the dust has settled, he’ll be forced to do the right thing.

DISCLAIMER: The only purpose of this claim tip is to help people understand the motor vehicle accident claim process. Neither Dan Baldyga nor (name of magazine/newsletter and/or web site) make any guarantee of any kind whatsoever; NOR to substitute for a lawyer, an insurance adjuster, or claims consultant, or the like. Where such professional help is desired it is the INDIVIDUAL'S RESPONSIBILITY to obtain said services.

Disaster Decision - Do You Need Insurance?

The expenses involved with owning a home can be overwhelming at times - routine maintenance, repairs, seasonal preparations, improvements. Not to mention taxes, fees, and all those monthly bills. Some homeowners, in trying to reduce their expenses, wonder if they really need disaster insurance.

Disaster insurance is typically defined as additional homeowner's insurance to cover events like hurricanes, tornadoes, earthquakes, and floods. Home insurance policies typically cover hurricanes and tornadoes (review your policy to be certain in covers damage from such events). But often damage from floods and earthquakes isn't covered. This extra insurance, if desired, must be purchased in addition to your standard homeowner policy, and it can be expensive, depending on where you live.

Because disaster insurance can be expensive, it's a type of coverage some homeowners opt not to buy. But in some cases they are required to buy. For example, mortgaged homes in the US that are located in designated flood hazard areas are required to buy flood insurance through the US National Flood Insurance Program. Of course, once those mortgages are paid, there is no longer a requirement to buy such insurance.

But homeowners in those areas should carefully consider whether they really want to take the risk that their home and everything in it could be swept away, leaving them with nothing but an empty lot. Homeowners that aren't in designated flood hazard areas should still know that floods can cause plumbing problems, like sewer and septic backups. These often aren't covered in a standard homeowner's policy, and they may want to consider an endorsement for coverage.

In the US, many tend to think that only the area along the west coast is subject to earthquakes. This isn't true however, and 39 US states have some potential for earthquakes. Coverage for seismic events can be very expensive in California and other western states, but homeowners in other states should evaluate the cost vs. the earthquake risk for the area where they live.

What Are The Auto Liability Insurance State Minimums For My State?

As you shop online for the best auto insurance deals you may begin to ask yourself what exactly is required by law when it comes to auto insurance. Fortunately this article outlines the auto liability insurance state minimums that you are required to have in order to legally drive in the United States. No matter what state you drive in all of them have financial responsibility laws and require motorists to purchase minimum amounts of auto liability insurance except for Tennessee, Wisconsin and New Hampshire.

Many websites and advocates of insurance (to include myself) recommend having a minimum of $100,000 for bodily injury protection per person and at least $300,000 for property damage costs and physical injury costs. The main reason for this is due to the increased amount of money needed to rectify an accident is usually more then what the states declare as the minimum amount of insurance coverage needed.

I have compiled the following information from the American Insurance Association, the Property Casualty Insurers Association, and the Insurance Information Institute. It shows the auto liability insurance state minimums as required by each state. In order to understand the numbers you must know what the mean. The first two numbers are for bodily injury liability and the third number represents the minimum amount of property damage liability.

As an example my home state of Missouri shows the following - Missouri 25/50/10. This means Missouri requires as a minimum coverage up to $50,000 for all persons injured in an accident, subject to a limit of $25,000 for one individual, and $10,000 coverage for property damage.

Alabama 20/40/10 Alaska 50/100/25 Arizona 15/30/10 Arkansas 25/50/25 
California 15/30/5 Colorado 25/50/15 Connecticut 20/40/10 Delaware 15/30/5 
D.C. 25/50/10 Florida 10/20/10 Georgia 25/50/25 Hawaii 20/40/10 
Idaho 25/50/15 Illinois 20/40/15 Indiana 25/50/10 Iowa 20/40/15 
Kansas 25/50/10 Kentucky 25/50/10 Louisiana 10/20/10 Maine 50/100/25 
Maryland 20/40/15 Massachusetts 20/40/5 Michigan 20/40/10 Minnesota 30/60/10 
Mississippi 10/20/05 Missouri 25/50/10 Montana 25/50/10 Nebraska 25/50/25 
Nevada 15/30/10 New Hampshire 25/50/25 New Jersey 15/30/5 New Mexico 25/50/10 New York 25/50/10 North Carolina 30/60/25 North Dakota 25/50/25 Ohio 12.5/25/7.5 
Oklahoma 10/20/10 Oregon 25/50/10 Pennsylvania 15/30/5 Rhode Island 25/50/25 
South Carolina 15/30/10 South Dakota 25/50/25 Tennessee 25/50/10 Texas 20/40/15 
Utah 25/50/15 Vermont 25/50/10 Virginia 25/50/20 Washington 25/50/10 
West Virginia 20/40/10 Wisconsin 25/50/10 Wyoming 25/50/20

Remember these figures only represent auto insurance liability state minimums. Many experts agree that more insurance is needed in order to fully protect yourself in the event you’re involved in an automobile accident.

Insurance Credit Scoring: An Ethical Issue

The issue at hand is the use of a consumer’s credit score as an underwriting tool for auto insurance rates. What is a credit score or FICO score? A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrower’s credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable.

Isn’t it interesting that the score most important in our financial lives, our consumer credit score does not even contain full disclosure? As stated above the Federal Trade Commission has ruled that it is ok for Fair Isaac & Co not to disclose the algorithms used in this process, but what about consumer rights.

While it is important to understand what a FICO score is, it is not the main issue of this paper, insurance rates are. So where is the connection? All the public knows is that Fair Isaac tells us there is a high correlation between people with bad credit and high risk drivers. This notion is insane and from what I can see from this black box approach, there is no real causation between the two.

This type of reasoning is similar to convicting a person of something before they have even committed a crime. For instance, let’s say I do a study and that study shows there is a high correlation between criminals and people with bad credit. Is this to say that just because you have bad credit you are more likely to commit a crime and therefore you should be profiled or perhaps locked up because you are a risk to society?

This system is discriminating against minorities, disabled and in my case college students among others. Fair Isaac & Co claims that they cannot show the sophisticated algorithms they use to calculate these correlations and scores because they fear that they would be giving up valuable proprietary information that was very costly to develop and maintain. What about the cost to consumer’s who may be paying higher rates or in worse cases even denied insurance based on these practices.

The Equal Credit Opportunity Act forbids creditors from considering race, sex, marital status, national origin, and religion, but if we don’t even know how these companies are calculating these scores, how in the world could we possibly know whether or not they are discriminating. This smoke and mirror approach is what many government agencies do to subtly discriminate and extort money from the American.

What about extortion? As I reflect on this topic extortion comes to mind. Webster defines extortion as to “obtain by force or compulsion.” By using such unfounded tactics consumers are forced into paying the higher rates. First of all, 90% of all insurance companies use this procedure; secondly in the interest of society legislation requires all Americans with cars to have car insurance. Living in a country where it is virtually impossible to live without a car doesn’t this present some force to pay the rates? Also, lets say you cannot afford to buy a car with cash, in which case you could obtain liability insurance alone and save quite a lot of money; but instead you take out a loan, the bank will require you to obtain full coverage auto insurance to cover them until you pay off the loan. While this case may not represent an extreme case of extortion it does give reason to ponder the connection.

Insurance companies tout themselves as representing peace of mind, protection and security, but at what cost. Over the past 10 years, I have spent roughly 20,000 dollars in car insurance, what have I claimed? Easily less than half and I totaled a car. Is insurance just a form of legalized gambling protected by government? The McCarran-Ferguson Act of 1944 exempts the insurance industry from antitrust laws, so here we are again without a choice; collusion is the rule not competition. Where are the ethics of lawmakers? Many states are screaming about this controversial issue and some states such as California have had some success, but with protection from top government what can consumers do?

I have personally written the Governor of Pennsylvania about the subject, one of my main questions was;

“I am a concerned citizen. Recently I noticed my car insurance rates increasing at a substantial rate. I investigated the situation only to find out that my credit rating was making the difference, not my driving record.”

The response I received from the Department of Insurance follows:

This letter is in reponse to your complaint filed with the Pennsylvania Insurance Dpartment through Governor Edward G. Rendell's correspondence office regarding the use of credit as an underwriting tool for automobile insurance in Pennsylvania.

I have read through your concerns and it appears that you are questioning the underwriting of automobile insurance. Specifically, the use of credit in determining eligibility. Many different factors go into the underwriting of an insurance policy, such as type of vehicle, drivers, location, etc. and most recently credit history. Pennsylvania law does not prohibit an insurance company fromusing credit as an underwriting tool so long as it is done within the first 60 days of writing a policy. Under the law, an insurance company is granted a 60 day window from the inception of a policy to determine whether or not the policy fits into the company's guidelines.

In your letter, you stated credit scoring in part of the rating structure and presumable must be approved by the Insurance Department. Actually, credit scoring is part of a company's underwriting guidelines and the Dapartment only regulates underwriting guideline to the extent they are not discriminatory.

Also, Federal law under the Fair Credit Reporting Act allows credit information to be used for underwriting financial and insurance transactions.

Sincerely yours,

Debra L. Roadcap

Consumer Service Investigator

The response I received is hardly what I would call an answer, of course Federal Law preempts state law and the Fair Credit Reporting Act allows for use of such information, but the real question is why? An answer to this question has still not been received. I believe this is a highly unethical practice in which insurance companies are being given free rule to take advantage of low-income families, single mothers, disabled, minorities and others. If the government wants to do the right thing they should judge consumers on what they have done individually, not what scientist’s hypothesis they might do based on the history of others.

Choosing Buy-To-Let Property Insurance

Risk is an area often overlooked by landlords, but failing to protect the main assets of your business, which often have borrowings secured against them could lead to ruin.

Landlords often fail to understand the types of insurance risks that they are exposed to and are unaware that insurance coverage for buy-to-let investments is very different to the standard household insurance policies that cover owner-occupied dwellings.

Therefore, landlords are advised to seek the services of specialist insurance companies catering for the buy-to-let market.

Essentially there are five broad categories of landlords insurance:

-- Landlords buildings insurance

-- Landlords contents insurance

-- Emergency assistance

-- Legal expenses insurance

-- Rent guarantee insurance

Landlords buildings insurance

These are the core policies and will generally provide coverage for a number of perils including fire, flooding, burst pipes, malicious damage and owner's liability.

It is worth checking the policies of each insurer as the perils covered may vary. Other issues to be aware of are the amount of money the insurance company will pay out in the event of damage occurring, types of tenants (student tenants are perceived to be higher risk) and consent to let from your mortgage lender, as failure to gain consent will render your insurance void in the event of a claim.

Landlords contents insurance

Many landlords insurance specialists will offer the option of limited or full contents insurance.

Limited contents policies are designed for properties that are let unfurnished or part furnished. A typical policy would provide cover of up to £5,000 for items such as curtains, carpets, white goods and light fixtures. Most policies will also provide employers and landlords liability cover in relation to these products.

Liability cover is important, as the number of personal injury claims relating to contents has risen at an astonishing rate since the 1990s, with awards in excess of £100,000 not uncommon.

Full contents policies are for fully furnished properties or for limited contents that would cost more than £5,000 to replace. When applying for full contents insurance, ensure you value the contents for the cost to replace them, opposed to the actual value that you think they are worth.

Emergency assistance

Cover is provided for general property emergencies, such as failing electricity supplies and cooking facilities, plumbing problems, leaking roofs and guttering, and damage to doors and windows.

Typical policies will provide parts and labour up to a specified cost, along with a 24-hour call out helpline number.

This sort of insurance is most suited to landlords who do not live near their property and have not contracted their managing agent to provide such a service.

It should also be noted that these policies only cover emergency call-outs and are not a general repair service required through lack of routine maintenance.

Legal expenses insurance

Problems can always occur with tenants and in many cases it is a change of personal circumstances such as job loss, accident or illness that will affect the tenants ability to pay rent or look after the property correctly.

Resolving such situations will usually involve expensive legal costs, sometimes running into thousands of pounds and legal expenses insurance is generally recommended.

Rent guarantee insurance

These policies guarantee that rent is received regardless of the tenants personal circumstances or ability to pay. These policies are most useful for landlords who have a mortgage on the property and are relying on the rental yield to service the loan. Policies will often guarantee rental payment for periods of six or twelve months.

Regulation

It is always advisable to shop around for insurance and understand what each policy provides. Always ensure that the insurance provider is a member of the General Insurance Standards Council (GISC) and is fully regulated by the Financial Services Authority (FSA).

Please note that this article is for information and guidance purposes only. With all financial matters you should seek professional advice with respect to your own specific circumstances.

Insurance Claim Handling Online - TPA Adjuster System

Claims management and administration software systems enable insurance claims adjusters, supervisors, and managers to process incidents and administer claims more efficiently and at a lower cost than traditional paper file and transport methods. Some areas that are made more efficient, thus lowering costs, are otherwise insufficient tracking and handling of medical provider billing (especially with medical bill repricing) and proper compensation scheduling. For larger claim adjuster organizations, tying claims data across multiple locations is a must. A complete claims management system will address these issues and more.

Claims Management System by Quick Internet Software Solutions (QISS), a comprehensive CMS, is a leading claims management software system that reduces cost and work and is Web-based to facilitate cross-location claims administration. For all claim types, medical bills are entered either via online screens by in-house repricing professionals, or they are digitally imported over the Web from third party repricing firms via electronic data interchange (EDI).

This data is then available for explanations of review, federal and state government forms, and check printing. Compensation payments are either manually cut or scheduled to ensure timely imbursement right from within the system. Home-screen diaries maintain notes for personnel working a claim and customizable, real-time reporting capabilities including Claim Loss Runs and summaries are two standard features in this claim manager. Going a step beyond, in the application service provider (ASP) model, QISS houses and maintains all claim system server hardware and software freeing the adjuster firm from IT firm concerns and ensuring that the latest security protections are taken. Because this insurance software is completely Internet-based, all the adjusters, underwriters, or clients need to use it is a free Web browser already on most computers.

Insurance and The Engineer

The world is no longer right when the two words, Engineer and Insurance are used together, side by side in a conversation. Individually they are words that justify their use, with their own explanations and own meanings as those that compile dictionaries see fit! They each serve their own purpose until such a time as when they are used in the same sentence or even on the same page. Engineer and Insurance cannot be used together anymore, yes there was a time when this topic had no base but here and today it can be seen that the words are not in any sense synonymous with each other.

The dictionary tells us that, insurance is “a thing providing protection against a possible event” or “money paid to insure against something or by an insurance company in the event of damage, injury, etc”. Well, that tells us something although it is a bit confusing.

The dictionary tells us that an Engineer is “a person qualified in Engineering” and also it says that an Engineer is “a person who controls an Engine or a Machine”. And there we have it. It is sad that one cannot now look up “Insurance Engineer” or Engineering Insurance” to gain some valuable insight into what is involved and to shed some light on this matter.

What sadly and inadvertently sparked this subject was by what an Engineering Superintendent once said to a Ships Engineer whilst they supped beer in a bar one night. The Engineer was naturally complaining about the lack of spares that are made available to the ships he was on. NB: This is a frequent grumble of Engineers and probably does have value and meaning the world over, no company liking to part with expensive spares if they can help it. Anyway, the Superintendent, true to form agreed with the ships Engineer and blamed everything on the paper pushing bosses upstairs, current ships budgets and the economy, thus he followed all the usual avenues that Superintendents typically use in this regard. The superintendent unfortunately took one too many sips of his beer and forgetting that he had long since crossed the fence from Ships’ staff to Office staff, let slip a snippet of conversation that he had either been party to or that his big ears had accidentally sounded out.

The statement was relayed like this: “It is not our policy to purchase spares for our vessels, we would rather wait until the equipment fails and then claim it back on Insurance”.

Stunned is the word that comes to mind. Shock, disbelief and outrage could follow close second. The Engineer and the Superintendent naturally turned to other topics like discussing fellow Engineers and their faults before finally retiring to their respective beds and forgetting all about what had been discussed. Except for the Engineer who for some reason or other could never quite rid the Superintendents “slip” from his mind. And can anyone blame him?

Engineers struggle to perform their duties within parameters given and in often harsh and unforgiving environments but given the essential shore back up they invariably perform their duties well and to a high degree of end performance and safety standards. The dictionary states quite clearly that Engineers are qualified persons looking after machinery. Machinery needs both adequate spares and Engineers to provide a safe working environment and to keep the machinery and equipment in satisfactory working order. A machine that is awaiting a future Insurance Claim is not a safe working machine and the Engineer has failed in his duty to keep the Machine or Engine functioning. From an Insurance point of view an Engineer and required spares are the “things” that provide protection against a possible event.

Due to modern systems of communication and the fact that spares are readily available in most ports of the world it is not common practice to build up large stocks of spares on vessels. It is largely entrusted and accepted by Engineers and Office staff alike that when the Engineer orders spares he does so because he needs them. He orders spares through the company whilst retaining the knowledge that they should arrive at the next port of call or at the latest within one month or so. The Engineer furthermore orders them because he predicts a use for them. By placing such an order he is, without his being fully aware of doing so, enacting Insurance on the Machinery that he has ordered spares for. He is providing protection against a probable event, which in this case is his Insurance to keep the machine or engine in a functional and safe working condition – as prescribed by the duties of an Engineer.

To recap in simplified form: The Engineer insures his machinery by replacing worn or used parts as he sees necessary to maintain a certain piece of equipment in a satisfactory working and safe condition.

The Company in this regard have failed in their duty to the Engineer, by not supplying the necessary spares as the Engineer deems necessary to fulfill his duties.

Insurance contributions or money paid to an Insurer is a costly business when considering the size and scale of what is involved. To wait for failure and thus save money on spares and to have the cost attributed to failure, with the subsequent repair of the equipment paid for by the Insurance Company, must seem “great” to the Ship Owner/Manager. There he is having his money returned to him by those who take most out of his budget and into the bargain the Insurance Company pay for all damages invoked by the failure, stoppage times and subsequent replacement of the failed equipment.

An Engineer who is working on a vessel where spares will not be sent out upon request becomes a useless Engineer. Now preferably called a Caretaker with no skills or interest in insuring his property simply due to a lack of usable items to effect such. An Engineer is (was) Insurance against equipment failure as long as he has at his disposal the spares necessary – without these he negates any Insurance that goes with the title of Engineer. He is qualified to maintain and look after engines and equipment, but he only becomes Insured (the ‘thing’) if he has the necessary backup from ashore. Take that back-up away and we are left with a qualified yet uninsured Engineer. He cannot perform his duties satisfactorily, he cannot give insurance that his machines will perform well and safely under his care, he cannot fulfill his duties in any shape or form whatsoever and thus is a liability to all concerned.

An Engineer has thus become through no fault of his own an Insurance liability to all concerned and that is why we cannot use Engineer and Insurance in the same sentence – it hurts and badly.