Insurance policy

How to Shop Around for the Lowest Auto Insurance Rate

2011-07-16T14:23:00.000-07:00

How to shop Around for the Lowest Auto Insurance Rate

One of the ways to save money in your budget is to shop around for the lowest auto insurance rate. When you get the best price on auto insurance coverage, you are able to save money every month, or every six months, depending on your policy. However, you need to make sure you are shopping effectively. Here are some things to keep in mind as you compare your auto insurance options:

Actual Coverage

Sometimes, you see that one company is offering a price quote that is much lower than another. Whether you are looking for an online insurance quote, or are calling around to different agents, you might find a startling difference in price. Before you get too excited about a low rate, you should be sure that you are comparing apples to apples.

Make sure you understand what is actually covered so you can compare policies that are truly similar. This means that they should have similar coverage amounts for the same items. You don’t want to compare a policy with comprehensive coverage to one that has liability coverage only if that is something you are looking for.

You should also look at the other items that might be covered, including windshield replacement, car rental and towing. Sometimes a policy seems cheaper because it doesn’t have these coverages, and you are comparing it a policy that does.

Discounts

Don’t forget to find out about discounts for things like having good grades (usually for teenagers and college students on your policy), having more than one vehicle and having other types of insurance, like homeowners/renters and life, with the same company. Ask about discounts for remaining claim-free, as well as discounts for having good credit.

Compare the possibilities between different policies. In some cases, a policy that looks slightly more expensive on the surface turns out to be less expensive, due to discounts or bonus programs. You can also look for companies that offer a partial premium refund when you are claim-free for a certain period of time.

Service

Of course, if you are not happy with the service provided by the insurance company, no amount of money saved might be worth it. You should do a little background research on the top companies you are interested in. Check the Better Business Bureau for unresolved complaints. Most insurance companies are going to have complaints against them, but you can find out a lot by the types of complaints there are. You can also tell something about a company by the help you receive as you shop around.

Look for a company that provides reasonably good customer service, as well. You want to find a company that offers a 24-hour claim line so that you can speak with someone anytime you need. You should also find out about the claims process so that you understand it. Even if you get quotes online, try to talk to an agent so that you can gauge how friendly and helpful the company is. If you are going to forge a long-term relationship, it might be worth it to pay a little bit more for superior service.

2010 U.S. Auto Thefts Lowest in 43 Years

2011-07-16T14:19:00.000-07:00

2010 U.S Auto Thefts lowest in 43 years

A report released this week by the National Insurance Crime Bureau (NICB) revealed U.S. vehicle thefts dropped to the lowest level since 1967. The decline in thefts represented the seventh straight year that thieves were deterred from or failed to steal vehicles.

257 Urban Areas Report Fewer Thefts

The NICB released preliminary figures this week that showed thefts probably declined 7.2 percent last year from 794,616 in 2009. According to the non-profit trade group, 257 urban areas reported fewer thefts in 2010.

Declines in specific cities include:

1.9 percent decline in New York City area (including northern New Jersey and Long Island) to 29,189
14.5 percent decline in Dallas to 21,963
State College, Pa. had the lowest rate with 46 thefts–or 30 per 100,000 people

Other areas with decreases in thefts included Detroit, Los Angeles and Miami.

Enhanced Security Devices, Bait Cars and Insurance Discounts Decrease Auto Theft

While the decrease in auto thefts is encouraging, it is not a surprise to experts. The NICB and other insurance groups say there are a number of reasons for the declines:

Better security devices: More cars come with built-in security devices installed by manufacturers, including tracking devices and ignition disablers that make them more difficult to steal successfully.
Insurance companies offer discounts: Drivers are now being encouraged to use anti-theft devices by auto insurance companies that offer discounts. This has resulted in an increase in drivers installing their own security features.
Increase in bait programs: The NICB says law enforcement in different states are also using more “bait programs” in which officers leave cars unlocked with the keys in the ignition to tempt thieves. These programs have reported helped to reduce thefts significantly.

The adjustments made by automakers, insurance companies and law enforcement collectively have had a huge impact on thefts in the U.S. But experts say that in addition to their efforts, the easiest way to protect your car from theft is to simply lock your doors.

Nation’s Most Dangerous Roads for Car Accidents

2011-07-16T14:12:00.000-07:00

Nation's Most Dangerous Roads for Car Accident

The chances of getting into a car accident on any road in the United States are high for all drivers. According to the National Highway Traffic Safety Administration, the average American has a 30 percent chance of being involved in a serious auto accident in their lifetime. But it becomes even more difficult to avoid a serious accident when traveling roads that have a history of accidents.

If you are excited about traveling this summer, you probably want to have a safe trip that doesn’t require a call to your auto insurance company. To increase your chances of a pleasant journey, make note of roadways noted by MSN that will require your full attention while driving as they are considered among the top 10 dangerous roadsand highways in the United States.

1. Colorado 550 from Ouray to Silverton

This two-lane stretch of highway in southern Colorado is known for being extremely dangerous due to its S-curves that wind through three San Juan Mountains passes. But what makes the stretch even more dangerous is wildlife migration and deer hunting in late fall that push thousands of animals to move across the highway. Did we mention this highway also passes through an avalanche zone?

One thing is for sure. If you’re traveling through this stretch, it’s important to keep your eyes on the road and carry good comprehensive insurance.

2. New York, I-95, Cross-Bronx Expressway

According to MSN, the Cross Bronx is known as one of the worst traffic bottlenecks in the nation. A study was conducted by researchers at INRIX in 2008 that found the 1-95 corridor flowing in and out of New York City to be more dangerous because tractor-trailers drive at rapid speeds down this stretch—tire-to-tire with cars. The danger comes from tons of potholes, a lack of shoulders and speed-crazed drivers.

3. Nevada I-15

The stretch of 1-15 between Nevada and California is known to be among the most dangerous in the United States. In a nine-year time frame, 173 people lost their lives, mostly by going too fast on a road that is already challenging to navigate.

It consists of 125 miles of desert terrain and a particularly intimidating climb through a 4,000-foot pass southeast of Las Vegas. Some people enjoy speeding through this area for thrills, causing accidents that can, of course, be life threatening.

4. Louisiana, Interstate 10

Interstate 10 in Louisiana crosses the southern part of the state and passes through New Orleans. Because much of this stretch was washed away by Hurricanes Katrina and Rita, some of the road has never been fully repaired, which is why, as you’re driving, it’s good to take heed to the pavement buckling as the soil shifts, as well as tons of potholes.

5. Atlanta I-285 at I-85 Interchange (Spaghetti Junction)

This web of highway in Atlanta makes the list of most dangerous roads in America because of the confusion it creates. I-285 and I-85 create a junction that is a five-level interchange with multiple ramps and smaller roads that feed into it.

Because of the confusion caused by this junction, The American Highway Users Alliance gave it a grade of F, indicating that its stop-and-go traffic causes 133,000 hours of traffic delays each year. But the time factor becomes a smaller issue in the winter when rain and freezing temperatures make this interchange resemble a skating rink—and cause tons of accidents.

6. Maine Highway 1

The two lane stretch of Maine Highway 1 is indeed one of the most dangerous roads to travel in the U.S., largely due to the heavy moose population in the northern reaches of the state and their tendency to roam the road.

Currently, Maine has the highest fatality rate on rural roads of any state in the country, partially thanks to the moose who are hard to see at night because they’re eyes aren’t reflected in headlights. Also, in the summer time, the roadside blueberry stands and other attractions seem to catch tourists’ eyes while driving, causing more accidents than the norm.

7. Los Angeles 101 to 1-405 Interchange

Freeways 101 and 405 in Los Angeles, which link the east side of the city to the downtown area is known as a dangerous stretch because drivers spend so much time riding bumper-to-bumper.

Stats show that an average of 318,000 drivers use this juncture every day, which means you are bound to be stuck in traffic for a while. This is indeed a formula for dangerous conditions as drivers get road rage and others may pay little attention and find themselves in fender benders.

8. San Diego, I-5

Because of Mexico, which is right beneath SoCal, allows U.S. minors to drink at the age of 18, you’ll find a lot of college students driving this stretch for a little weekend fun and returning inebriated.

Believe it or not, 10,000 to 15,000 people are arrested committing DUIs in San Diego County each year. Seeing that 32 percent of fatal car crashes are the result of individuals driving under the influence, it’s smart to drive with caution down this stretch, especially on the weekends.

9. Chicago Circle Interchange

This highway interchange was built in downtown Chicago in the 1950s as a way to link 1-94, 1-90 and 1-290. At the time, there weren’t nearly as many vehicles on the road, so it provided a pleasant way for commuters to navigate through the city.

But several decades later, the city’s population increased considerably, making the single-lane, circular on-ramps no longer conducive to 25 mile-per-hour traffic. The average traffic delays, thanks to this interchange, are 90 minutes, leaving many drivers frustrated and the danger of accidents high.

10. Providence, Rhode Island (I-95 at the I-195 Interchange)

This interchange, similar to Chicago’s, was built in the 1950s; however, it was created as a way to help drivers follow routes that already existed in and around the Providence area. Safety was compromised in the creation of this interchange due to short on- and off-ramps and sharp curves that contribute to frequent accidents and traffic jams. As a result, it is considered one of America’s worst bottlenecks.

Unfortunately, many of the roads and highways that are considered the most dangerous routes are difficult to avoid for most drivers in the area. So if you must take these routes in your commute, be sure to carry liability insurance, as well as comprehensive and collision insurance so that you’re financially prepared for the hazardous conditions you could face.

Stacey Bumpus started writing as a youngster, creating little fun newsletters to distribute to her elementary school friends. But it wasn’t until she completed her bachelors and masters degrees in communication that she realized her fun pastime could become a career.

After spending years in corporate communications, she discovered that freelancing was her cup of tea and fell in love with finding the latest financial news. Now, providing news and tips about taxes, mortgages, banking and even logging her efforts to save toward retirement, she’s not only fulfilling her childhood passion, but also helping others manage their finances responsibly.

General Motors to Offer Select New Customers Free Auto Insurance

2011-07-16T14:10:00.001-07:00

General Motors to offer Select New Customers Free Auto Insurance

Auto manufacturer General Motors announced this week that it will be starting a pilot program that offers car buyers one year of free auto insurance. Currently, the new incentive program, offered through MetLife Auto and Home, will only be provided to customers in the Pacific Northwest.

Customers Must Purchase New Model-Year Vehicles

In its announcement, General Motors stated customers who purchase a new 2010, 2011 or 2012 model-year vehicle from one of its dealers in Oregon and Washington will also receive a yearlong insurance policy from the manufacturer.

According to MetLife, the policy will cover the vehicle and anyone who drives it with the owner’s permission, starting on the date of purchase. The insurance will last for an entire year as long as the buyer still owns the car during that time.

G.M. noted the insurance can be bundled with other deals as well, including incentives to lower the cost of the vehicle. The insurance incentive program is set to expire on Sept. 6.

Sales Have Been Slow in the Pacific Northwest

General Motors stated that its reason for offering this unique incentive program is that auto sales have not rebound in the Pacific Northwest as they have in the Midwest and other areas. In Portland and Seattle in particular, buyers are said to be more loyal to foreign brands.

G.M. says it hopes the incentive will appeal to family households, especially those with teenagers who are beginning to drive and may have to pay higher insurance costs with a separate company. Also, the fact that a car totaled in the first year or first 15,000 miles (whichever comes first) would be repaired or replaced by MetLife without deducting for depreciation could be particularly appealing.

So far, the automaker doesn’t plan to offer the deal anywhere outside of the Pacific Northwest. However, it plans to see how it resonates with customers who take advantage of it. If it is successful, the program may be introduced nationwide.

Worst Cities for Towing Increase Costs Associated with Auto Insurance

2011-07-16T14:09:00.000-07:00

worst Cities for towing Increase Cost Associated with Auto Insurance

A new survey released by the Property Casualty Insurers Association of America (PCI) revealed that five cities are worse than others when it comes to aggressive towing practices. it was also revealed that these aggressive towing practices are often associated with drivers paying more in expenses related to auto insurance.

Cities with Worst Towing Practices

According to the PCI, a number of cities are notoriously worse than others when it comes to their towing practices. The survey found that the worst cities in the nation are:

Chicago, Ill.
Philadelphia, Pa.
New York, NY
Atlanta, Ga.
Houston, Texas

The PCI also listed the five worst states for aggressive towing, which included Illinois, Pennsylvania, New York, New Jersey and California.

Effect on Auto Insurance

Some of the issues arising from aggressive towing practices, according to the survey, include the following:

High towing and storage charges and miscellaneous charges like “helper fees” and “wait time fees”
Inconsistent and difficult release processes
Lack of transparency and communication from towing companies
Failed access to vehicle for adjustors

According to the PCI, these unsatisfactory practices by towing companies are not only causing frustration and confusion, but are also increasing out-of-pocket expenses for policy holders as well as charges for insurers, in turn affecting the auto insurance costs consumers pay.

Because the towing companies are often charging monstrous amounts for towing and storage costs (ex. an insurer’s bill for a vehicle in Iowa that was towed seven miles with no storage time was $892, according to the survey) and insurance companies sometimes foot the bill, the costs are trickling down to the policyholder.

The National Insurance Crime Bureau report that claims of inflated towing and storage bills increased by 57 percent since 2009. Unfortunately, it’s difficult to research the reputation of a towing company when in need of immediate help, which is why it’s good to conduct research ahead of time in hopes of working with a reasonable company when you need them most.

Medicare and Medicaid Fraud Conducted by Criminals Posing as Pharmacies

2011-07-16T13:55:00.000-07:00

Medicare and Medicaid Fraud Conducted by criminals posing as pharmacies

Criminal enterprises are stealing millions from the health care system as they pose as pharmacies. federal officials say these so-called “phantom pharmacies” are billing Medicare, Medicaid and private insurance companies for fake prescriptions.

Pharmacy Scams Getting Out of Control

According to the Department of Health and Human Services (HHS), the scams are growing by the day. Shimon Richmond, a field agent with the HHS told CNN Money that the scams are “a huge issue for the department.”

While the department isn’t clear exactly how much money is being drained from the health care system as a result of the phantom pharmacy schemes, it says taxpayers and the health insurance industry as a whole are losing more than $60 billion a year.

Unfortunately, this increase in fraud is also contributing to rising health care costs, says the HHS.

How the Scam Works

According to experts, here’s how the scheme typically works:

Criminals use a legitimate address to establish a fake pharmacy business.
Using stolen doctor ID and patient insurance ID numbers, the scam artists will write fraudulent prescriptions for expensive drugs that were never prescribed or dispensed.
They submit the fake prescriptions for reimbursements to insurance companies like Medicare or Medicaid for large returns. A fake pharmacy can rake in anywhere from $2,000 to $8,000 in a single claim.

The HHS is pursuing hundreds of phantom pharmacy cases, but is having a tough time cracking down because the pharmacies operate quickly and quietly. The entire span of their operation could run in as little as 60 days before disappearing and popping up again somewhere else under a new address.

Regulators also say that because Medicare requires pharmacies to be reimbursed quickly, fake claims are often paid out before they’re validated. They say there are just not enough law enforcement officials to stop it all.

With the scam artists being extremely clever–and often receiving the help of trained health-care professionals who want in on the money–the HHS says its fight against phantom pharmacies is likely to be an uphill battle for years.

Man Robs Bank for $1 to Receive Medical Care in Jail

2011-07-16T13:52:00.000-07:00

Man Robs Bank for 1$ to Receive Medical Care In jail

A man so desperate for medical care that he was willing to rob a bank to go to jail is finally getting his wish this week: A doctor’s appointment. The 59-year old North Carolina convenience store clerk said his bank robbery of a mere $1 was his attempt to get the medical treatment he hadn’t been able to receive via the traditional route.

Man Desperate for Medical Treatment

James Richard Verone was not like most bank robbers who hide their faces, tote assault weapons and rush tellers to fill bags with money in hopes of making a quick escape. Verone casually walked into a Gaston, N.C. bank unarmed, handed the cashier a note demanding $1 then sat down and waited for police to show up.

His robbery attempt came with only one goal: Jail time for medical treatment.

After losing the job he’d held for 17 years as a Coca Cola deliveryman during the financial crisis and eventually taking a part-time position at the convenience store, he realized his medical problems–which included back and foot issues, carpal tunnel syndrome and arthritis–prevented him from doing his work effectively.

Then he noticed a protrusion on his chest that brought with it pain he said he couldn’t tolerate. Having no health insurance, he was unable to get the help he needed, so he decided to take matters into his own hands.

Verone Says Treatment in Jail Is Easier to Come By

On June 9, Verone mailed a letter to the Gaston Gazette, telling the newspaper of his plans to rob the bank. He listed his forwarding address as the Gaston County Jail. Then he hailed a cab to take him to RBC Bank where he handed the teller his $1 demand on paper and waited for the police to arrive.

He was indeed taken to jail and charged with larceny instead of bank robbery since he only attempted to “steal” $1. But the initial punishment landed him enough time to make an appointment with the jail doctor for Friday.

Verone’s original bond was set for $100,000 then was reduced to $2,000, but he doesn’t plan to pay it. He hopes to stay in jail for a few years and even plans to tell the judge that he will commit the crime again if his punishment isn’t severe enough. He explained that choosing jail was just the best of a bunch of bad options and he has no regrets.

He hopes before his sentence is complete that he will receive back and foot surgery and get the protrusion on his chest treated. When he is eventually released, he wants to collect Social Security and move to the beach.

Obama Administration Plans Undercover Survey on American Doctors

2011-07-16T13:50:00.000-07:00

Obama Administration plans undercover Survey on American Doctors

The Obama administration has announced its plans to conduct a survey on American doctors in the near future. The survey will be the government’s attempt to confirm reports of the difficulties people have when trying to obtain health care.

Survey to Address Issues in Health Care

According to the Obama administration, the survey will use undercover contractors who will pose as patients, unknown to physicians at various medical facilities. Some of the goals of this survey include:

Addressing the critical shortage of primary doctors, including experts in internal medicine and family practice.
Finding out if doctors accept patients with private health insurance and turn away those with government coverage, as noted in a recent study.

Ultimately, the Department of Health and Human Services–which proposed the poll to the White House–says it wants to use the survey to ensure that more than 30 million Americans who will acquire coverage under health care reform will have access to primary care doctors.

Doctors Against Secret Surveyors

Doctors have expressed displeasure with the idea of the secret survey, stating that the approach connotes a Big Brother tactic. However, federal health officials have assured the doctors that the result of the survey would be confidential.

The government estimates that the survey will initially cost $347,370 and is likely to go up over time. Hopefully, however, the answers gained will pay for themselves if health officials are able to ensure more Americans have access to quality health care.

Georgia to Allow Out-of-State Health Insurance Policies Starting July 1

2011-07-16T13:48:00.001-07:00

Georgia to allow Out of state Health Insurance Policies Starting July1

A new law in Georgia will allow state-licensed health insurance companies to sell policies offered across the nation that provide less coverage than the state requires. The new law is set to take effect on July 1 and is said to be among the first of its kind to be offered in the United States.

Policies Only for Individuals, Not Employer Groups

Under the new law, individuals in the state will have access to a larger number of policy options since they will be able to purchase from additional states. However, individuals who are currently insured by their employers fall into the category of group coverage and won’t have access to the policies.

Independent policyholders currently comprise only about 4 percent of the market in Georgia, according to the Kaiser Family Foundation. Because they are underserved, state lawmakers want to open up opportunities to this group.

It’s unclear how many insurance companies operating in the state will eventually offer plans. Currently, none are able to because the state insurance commissioner’s office has to write and adopt regulations that will govern the policies–a process that could take several months to complete.

Critics Say Law Could Open the Door for Watered-Down Policies

The debate of whether or not to offer health insurance across state lines has existed for many years. Most recently, Republican lawmakers proposed to have this provision added to health care reform prior to the law’s passage in March 2010. Their proposal was turned down.

Now that the law has been passed in Georgia, experts say it could drive prices down by introducing new competition and allowing roughly 20 percent of residents in the state to find a policy they can afford.

But critics of the law complain that taking this route could open doors for watered-down policies that don’t cover important services like mammograms, diabetes care or even regular checkups for young children that are required under Georgia policies.

The bill’s sponsor, state Rep. Matt Ramsey, says he is working to build in consumer protections that will address these concerns, including requiring out-of-state plans to carry a benefits chart outlining exactly what Georgians are getting for their money.

In addition, he says those who purchase the plans will still have access to the state’s dispute resolution process and Georgia courts, giving them the protections they need if they decide to take on an out-of-state plan.

Wal-Mart to Offer Free Legal Support to Medicaid Patients

2011-07-16T13:45:00.000-07:00

Wal-Mart to Offer free Legal Support to Medicaid patients

The nation’s largest retailer, Wal-Mart, recently announced it will provide free legal support for Medicaidpatients and their families. This is the first time in the company’s history that it will be interacting with the government’s public health insurance system in this way.

Wal-Mart Partners with Arkansas Children’s Hospital

Wal-Mart has announced it will be partnering with the Arkansas Children’s Hospital to provide legal support to Medicaid patients free of charge. In the arrangement, Wal-Mart’s lawyers will take on the government and other entities to help sick children gain access to programs, equipment and services that they may have been denied under the program.

Jeff Gearhart, Wal-Mart’s general counsel, recently announced the company’s in-house team of 142 lawyers will help patients with a variety of issues associated with Medicaid. For instance, he noted lawyers might tackle Medicaid’s administrative and bureaucratic hurdles–the red tape patients encounter when visiting a hospital for care.

He explained lawyers will also be trained to help families navigate Medicaid in basic ways like filling out the right forms, as well as for more complex matters like procuring insurance for expensive treatments or medical devices like specialized wheelchairs.

Because the bulk of the cases attorneys will work on will be resolvable through due diligence and rarely require litigation, Gearhart said the company can work for a few hours of pro bono legal time.

Services Could Expand Medicaid Options for Families

Currently, the program is only being offered via the pilot project with the Arkansas Children’s Hospital. Gearhart said if the pilot is success, the company could expand the partnership nationwide so that it works with other hospitals, companies and law firms in a similar way.

This could be of great benefit to the large number of Medicaid patients who reportedly don’t have access to the same treatment options as patients with private coverage.

A report released in June by researchers in Illinois found that medical specialists were more likely to deny treatment to patients on Medicaid than those with private insurance largely due to the low reimbursement rates and delayed payments. The same was revealed a month earlier in a study conducted on dentists.

Wal-Mart has expressed hope that issues like this can be resolved through its free legal support while simultaneously providing patients with the knowledge necessary to make the most of their Medicaid coverage.

69 Percent of Single Parents Lack Life Insurance

2011-07-16T13:43:00.001-07:00

69 percent of single parents Lack Life Insurance

Obtaining life insurance is a huge challenge for 69 percent of single parents, according to a new study conducted by Genworth Financial. The study found that unmarried parents, especially those with children living in the home full-time, are the largest group of people without life coverage.

Single Parents Struggle to Buy Coverage

Parents who are unmarried or divorced struggle the most to secure life insurance for their families. According to the survey, in addition to the high number of single parents struggling to buy coverage with children in the home full-time, 59 percent of single parents with children in and out of the house are without life insurance.

This is compared to 45 percent of married parents with children in the home that carry coverage and 49 percent of the entire U.S. adult population that covers some type of life insurance coverage.

The survey found that the number of uninsured households tends to increase as the number of children increases. This is especially true for single parents earning lower incomes. For families with five or more children, the likelihood of being uninsured drastically increases.

Securing Coverage Harder for Unmarried Male Parents

Genworth Financial found that of those surveyed, 79 percent of unmarried men who are not homeowners, have children in the household earning up to $250,000 per year are without a life insurance policy. This is compared with 66 percent of women who earn less than $50,000 per year.

The reason that many men, and single parents as a whole, don’t secure coverage is because they are too busy and sometimes too afraid to make the purchase. Also, some say many individuals are not educated enough about life insurance and therefore, lack the confidence to buy their own.

If you are interested in getting insured but feel uneducated in this area, start by learning the difference betweenterm and permanent life insurance. By understanding these types of coverages, you could determine which route is best for you then start shopping for companies that meet your needs at an affordable price.

69 Percent of Single Parents Lack Life Insurance

2011-07-16T13:42:00.003-07:00

69 percent of single parents Lack Life Insurance

Single Parents Struggle to Buy Coverage

This is compared to 45 percent of married parents with children in the home that carry coverage and 49 percent of the entire U.S. adult population that covers some type of life insurance coverage.

Securing Coverage Harder for Unmarried Male Parents

22 States Reach Life Insurance Agreement with Boston Insurer

2011-07-16T13:41:00.000-07:00

22 States Reach Life Insurance Agreement with Boston Insurer

John Hancock Life Insurance Co. has reached an agreement with nearly two dozen states to settle a dispute over how the Boston insurer pays life insurance policies and annuities. The move comes after 35 states and the District of Columbia audited the company, alleging that it abuses its policies and contracts, not paying properly after a person dies.

John Hancock Mismanaged Beneficiary Funds

The insurance company is required under its contracts to properly pay beneficiaries after a policyholder dies. If the insurance company cannot find the beneficiaries, states like California have an unclaimed property program that has businesses send lost or abandoned financial accounts to after three years of inactivity to safeguard them from being spent or lost.

According to reports, the company didn’t send beneficiaries money and didn’t shift the funds to the unclaimed property program.

In one case, John Hancock reportedly used the cash value of a life insurance policy to pay an individual’s premium over a seven-year period. The person died in 1999, yet the beneficiaries never were sent any payments and benefits were never sent to the controller’s office.

Company Vows to Improve Claims Practices

To settle the dispute, Jonathan Chiel, executive vice president and general counsel for John Hancock, says the company will now improve its claims practices.

Under the agreement, the company is now required to do a better job of identifying deceased policyholders and also notifying their family that they have money waiting for them. In California alone, the values of more than 6,400 accounts dating back to 1992 will be restored.

According to the California controller’s office, John Hancock was one of many insurance companies audited. It was just the first to be held accountable for its actions.

The other states involved in the settlement were Kentucky, Texas, Georgia, Idaho, Oregon, Illinois, New Jersey, Louisiana, Pennsylvania, New Hampshire, Maine, Massachusetts, Tennessee, Maryland, South Dakota, Michigan, Utah, Mississippi, Montana, North Dakota, Wisconsin, and the District of Columbia.

Texas Seeks Oversight of Life Settlements

2011-07-16T13:39:00.000-07:00

Texas seeks Oversight of life Settlements

Securities regulators in Texas are pushing for greater state oversight of the life settlement industry. This push comes after regulators began their effort to shut down at least six companies that buy these policies from seniors.

Investors Losing Money by the Millions

Individuals who have invested money into life settlements, (life insurance policies companies purchase from senior citizen policyholders based on their life expectancies in an effort to become their beneficiaries and collect the full sum of their payout upon their deaths) are losing it by the millions, according to the Texas State Securities Board.

Those offering to set up settlement opportunities for retirees are advertising returns of 20 percent or more per year so that they will invest millions into their policies, regulators say. The more money placed into the policies, the larger the amount of cash payout is promised to retirees when the policy is settled.

Unfortunately, Texas regulators say that despite 2,200 retirees putting $220 million into policies over the past two years for life settlement cash outs, many have lost some or all of their money. This is largely due to underestimated life expectancies and other issues.

Regulators Seek Oversight of the Settlement Industry

A major lack of meaningful oversight is said to be blamed for retirees being taken advantage of by the companies that have yet to be named. It’s for this reason that the state is looking for the ability to govern the industry like other states that officially recognized life settlements as investments subject to regulation.

State Insurance Commissioner Mike Geeslin has urged lawmakers to consider tighter regulation of the business, noting in a statement that “Even though the settlement industry is relatively young, it has produced a substantial amount of harm to Texas investors.”

The only problem for regulators is that there is less than one month left in the regular session of the Legislature and, so far, no legislation has been introduced in either of the state’s legislative chambers. With little time to spare, the likelihood of regulators gaining control of the industry soon is very slim.

Should I Get Term or Permanent Life Insurance?

2011-07-16T13:36:00.000-07:00

should i get Term or permanent life Insurance?

Deciding what type of life insurance to purchase can be challenging to those who want to make sure they buy the very best coverage for their family. The two main types of coverage to purchase are term and permanent. Which is the best choice for you? Since making the right choice depends on your circumstances, let’s take a closer look at how you might decide.

The Difference between Term and Permanent Insurance

First let’s take a look the two types of coverage. Term life insurance is a predetermined sum of money people pay to cover their death if occurs during the specified period of time. For instance, if you buy a 10-year term policy, the payments you make cover you as long as you died within the next 10 years.

While you may be able to purchase additional life insurance riders like Accidental Death or the Disability Waiver of Premium, the term policy in and of itself typically doesn’t come with additional benefits. At the end of a term policy, it is necessary to purchase another one to be covered.

Permanent life insurance is coverage meant to financially protect loved ones upon your death, no matter when you die. This means, if you purchase the coverage at the age of 30 and die at 85, as long as you keep up with payments, you will never have to purchase a new policy.

One element of permanent life coverage that makes it unique to the term policy is its savings component. Because you are likely to spend 30 or more years paying into permanent life insurance, making it more of an investment, the policy is treated as such.

Permanent premium payments go toward death benefits, investments (money market securities, bonds, mutual funds or even applied to a fixed interest rate) and cash payouts that can be used as money left over for your family upon your death, or even extra cash you take prior to your death.

There are three standard types of permanent coverage:

Traditional Whole Life: Guarantees annual premiums, cash values and death benefits.
Variable Life: Few premium and benefit guarantees but more potential for cash-value increases because investments are riskier.
Universal Life: A flexible coverage option that allows premiums to vary from year to year.

It’s good to note that because permanent coverage offers so many more features than term coverage, it typically comes with a higher premium.

Deciding the Type of Coverage to Choose

To help you decide which type of coverage might work best for you, let’s look at life circumstances and desires that might sway your decision in one direction over the other.

California to Investigate 10 Largest Life Insurance Providers

2011-07-16T13:32:00.000-07:00

california to investigate 10 largest life insurance provider

Dave Jones, California’s Insurance Commissioner, has stepped up his effort to investigate top life insurance companies. The top 10 companies in the industry, the commissioner says, have been accused of not properly paying death benefits to family members after policyholders have died, which is illegal.

Companies Accused of Not Paying Benefits

Similar to an investigation against John Hancock Life Insurance Co., Jones wants to take a look at the top 10 life insurance companies under the accusation that these companies are not ensuring the beneficiaries of deceased policyholders get paid.

The fact that these companies allegedly have not been contacting beneficiaries for payout is heightened by the fact that the companies are said to make an active effort to find deceased annuity customers so that they can stop making annuity payments.

In addition to John Hancock, the states facing investigations are MetLife, Prudential, Nationwide, New York Life, Lincoln National, Sun Life Financial, The Hartford, Pacific Life and Aegon Group.

Jones intends to push for so-called market conduct examinations in 35 states, which will probe violations of the law by these companies. If insurers are found guilty of illegal claims-paying practices, they could face fines, restitution and possible license suspensions.

Evidence of Wrong-Doing Already Revealed

Jones says he has already found evidence that MetLife failed to pay money to beneficiaries for two decades and also failed to submit money to the state’s lost or abandoned fund, which was created to ensure no money is wrongfully spent by insurance companies if they are unable to find beneficiaries over a three-year period.

Florida Insurance Commissioner Kevin McCarty said in state hearing that he estimates life insurers may owe beneficiaries and the 50 states more than $1 billion in unclaimed assets. The money is sitting in insurers’ retained asset accounts, which are beneficial to companies as they grow interest on those assets.

Regulators believe the 10 companies noted are trying to hold on to the money to increase their income instead of paying out to the proper parties. Jones and other regulators expect other carriers will be included in the probes in the coming months.

Life Insurance Company Sues Twitter Imposter

2011-07-16T13:29:00.001-07:00

life Insurance company sues Twitter Imposter

Coventry First is suing an anonymous critic who posted fake tweets, making the company appear to cheer for the death of policyholders. The Fort Washington, Pa.-based secondary life insurance firm filed a lawsuit on Tuesday in Philadelphia federal court, accusing the critic of unfair competition and trademark infringement.

Anonymous Critic Sends Damaging Tweets

Coventry First, which is considered a leading player in the secondary life insurance market–a market in which investors pay individuals for the right to collect on their policies–says the anonymous critic has set up the Twitter account @coventryfirst and is breaking the law by sending damaging tweets.

The tweets consist of messages like “horrible weekend … no plane crashes” and “natural disasters are good for business!” implying that the company takes pleasure in the deaths of policyholders.

The secondary life insurance (also known as life settlement) market has come under fire in recent years because of the very nature of the market–profiting on the death of another person.

The anonymous critic is jumping in on the debate with its implications that the company is not only profiting on the deaths of the policyholders it buys from, but is actually looking forward to their deaths.

Coventry Seeks Monetary Damages

The life insurer has sought a court order for monetary damages as well as the destruction of the Twitter page. In addition, the company has issued a subpoena asking Twitter to reveal the identity of the account holder.

However, the chances of shutting down the account appear uncertain due to courts’ obligations to balance overall free speech values against the rights of brand owners in trademark law.

In this case, the fact that the account was not used for commercial purposes could hinder the company’s ability to prove an infringement has occurred.

Also, the company would be responsible for proving that the fake account led to confusion in the mind of consumers–that is, consumers assumed the fake account really belonged to the insurer–which could prove difficult.

NY Attorney General Subpoenas 9 Life Insurers

2011-07-16T13:27:00.000-07:00

Ny Attorney General subpoenas 9 life insurer

New York Attorney General Eric Schneiderman sent out subpoenas to nine leading life insurance companies last month. A source close to the matter told Reuters on Tuesday that the subpoenas sent addressed the companies’ practices in identifying and paying out policies to deceased customers.

Companies Not Identifying Deceased Policyholders

In a probe similar to that conducted by California Insurance Commissioner Dave Jones in May, Schneiderman is investigating nine major insurance companies that are being accused of not doing enough to locate beneficiaries of policyholders after they’ve died.

His office is seeking information about unclaimed policy proceeds that should have either gone to the beneficiaries or been turned over to the state. The belief is that companies failed to seek beneficiaries on purpose to instead hold the money in retained asset accounts that grow interest over time.

The companies sent subpoenas include AXA SA, Genworth Financial Inc., Manulife Financial Corp., TIAA-CREF, Guardian Life Insurance Co. of America and Massachusetts Mutual Life Insurance Co. Three of the companies included, MetLife Inc., Prudential Financial Inc. and New York Life Insurance Co., have also been subpoenaed by Jones, said the source who wanted to remain anonymous.

Insurers Deny Wrongdoing but Plan to Cooperate

A spokesman for Guardian told Reuters that the company is reviewing the subpoena and intends to “cooperate fully with the Attorney General.”

TIAA-CREF also plans to cooperate but told Reuters, “We believe our processes are compliant with all relevant regulations and serve the best interests of our participants.”

A Genworth spokesman told The Wall Street Journal that it also believes it has “compliant and robust practices to determine when claim payments are due and owing, and to adhere to state unclaimed property requirements and regulations.”

The New York State Insurance Department announced on Tuesday that all life insurers licensed to do business in the state will have to start using an official government death list to identify when policyholders have died. It will also list when death benefits are due to their beneficiaries

Cutting Medicare and Medicaid to Solve Debt Ceiling Issue Will Only Shift Health Care Costs

2011-07-16T13:23:00.000-07:00

Cutting Medicare and Medicaid to Solve Debt Ceiling Issue Will Only Shift Health Care Costs

Health care experts say that the Medicare and Medicaid budget cuts that have been proposed by lawmaker

to resolve the debt ceiling issue would only shift health costs, not eliminate them, according to a new Wall Street Journal story. So far, abut $350 billion in cuts have been proposed to the two programs over the next 10 years, but most think these government savings would actually become new costs for others.

Lawmaker Proposes Medicare and Medicaid Cuts

Lawmakers have been in debates over the past few weeks on how to avoid default after national debt reached its $14.3 trillion ceiling on May 16. Some have proposed raising taxes while others want budget cuts.

This week, House Majority Leader Eric Cantor (R-Va.) presented a list of proposed cuts, which include lower federal payments to hospitals with many poor patients, as well as state Medicaid programs, new patient co-payments for clinical lab work and reduced payments to nursing homes and rural hospitals.

These cuts would be in addition to the $500 billion in cuts to the Medicare program that were already approved to allow the passage of the 2009 health care bill.

Proposed Cuts Will Be Shifted to Other Entities

Both Democratic and Republican health care analysts who have reviewed the cuts agree that they would not really save money. Instead they would shift financial burden to other entities like public hospitals, the states and individuals.

For instance, up to $53 billion in savings over the next 10 years would come from cutting Medigap, which is Medicare supplement insurance. The cuts would result in higher out-of-pocket costs for seniors.

Another proposal has been to save $14 billion to $26 billion by cutting back on reimbursing unpaid debts. While this would save the government money, it would shift the burden to hospitals.

Experts say the better alternative to making these cuts would be to devise a strategy that would restrain costs. For instance, Medicare could offer different tiers of coverage similar to private health insurance. This way, more could be acquired from seniors willing to pay more for higher-quality coverage.

Experts say states, hospitals and individuals are not in a position to burden the shifted costs. They hope lawmakers will work out other ways to resolve the debt issue by the Aug. 2 deadline.

insurance policies

2011-07-16T12:56:00.001-07:00

Just because you eat veggies and hit the gym regularly doesn't mean you're immune to an illness, or won't have an accident.

Everyone requires medical help at some point and if you don't have insurance, the resulting bill is going to be painful. Deliver a baby -- without complications --and expect to fork over an average of $10,000, says Matt Tassey, former chairman of the Life and Health Insurance Foundation for Education (LIFE). Get diagnosed with cancer and the expenses can go into the million-dollar range, says Lorne Zalesin, CEO of MyInsuranceExpert.com, which offers free quotes for individual health-insurance policies.

If your employer doesn't offer coverage in a group plan, look into an individual policy. Just be aware that private health insurance typically requires holders to pay higher premiums than they would with a group plan. And coverage may be more limited. To find the right individual plan, visit your state's insurance department web site, which often lists area insurance providers, and web sites like eHealthInsurance.com and MyInsuranceExpert.com for free quotes.

Visit our worksheet for more on choosing the best health plan.

Disability Insurance

Few people like to imagine the worst-case scenario, but Scott Simmonds, a Saco, Maine-based insurance consultant, makes a practice of it. He knows that one major accident could keep a person out of work for months or even years. Even worse: those without disability insurance could face bankruptcy. (Even though Simmonds doesn't sell disability insurance, he still recommends it.)

Disability insurance replaces a portion of up to 60% or 70% of lost income if the policyholder can't work due to an illness or injury. Often times, companies pay for employees disability insurance, or offer it as a voluntary benefit that employees pay for. Individuals can also buy their own policy, although the premiums will cost around 15% more, says Simmonds.

Shop around carefully. These policies are very complicated, can include many caveats, such as what qualifies as a disability, and can be hard to land on your own. Also, costs will vary based on an individual's income and type of coverage. If your employer doesn t offer adequate coverage, contact independent insurance agents who can provide you with a range of policies, says Simmonds.

For more on disability insurance, read our story.

Auto Insurance

What good is a shiny, new sports car if a fender bender will put you in the poor house?

States require different minimum amounts of auto insurance, but it's not enough to take care of things when they really count. Every driver should invest a little extra in comprehensive and collision coverage, especially if their car is less than 10 years old, says Claire Wilkinson, vice president of global issues at the Insurance Information Institute. (For cars older than that, the cost of coverage can be more expensive than the car's value.) Comprehensive coverage protects a car from vandalism, natural disasters like a storm or a tree falling on it, and most other damages -- excluding collisions. That's where collision insurance comes in. It helps pay for repairs to or replacement of a car if it's involved in an accident with another vehicle.

Read our story here for more tips on determining the type of auto insurance you may need.

The Multi Trip Insurance.

2011-07-13T13:52:00.001-07:00

It could be quite challenging if you travel annually and have to make insurance plans for every trip. Vacation, retreats, religious or academic are some of the many reasons why people travel. With all the uncertainties lined up, having one insurance package to cater to all your insurance needs will be great.

The Annual Insurance Plan meets all yourinsurance needs adequately. There is an assurance of sufficient cover and all year protection to the insured person within the period. The cover includes accidental health and evacuation in terms of a mishap and medical expenses. Should the insured person lose his life in the process, some money will be due his beneficiaries. The amazing thing is that the plan is yearly and covers all trips within the year.

This Insurance policy is also ideal because it ischeaper than purchasing a new insurance package every time one has to travel. That means, with the one policy purchased will handle all trips for that year. Seeking and buying a fresh insurance policy each time one has to travel could be laborious and cumbersome. The rigours of signing papers, filling forms; it is most convenient to just buy one package for the whole year.

The Annual Holiday Insurance consists of two packages; the Annual Multi Trip Insurance and the Multi TripTravel Insurance. The Annual Multi Trip Insurance presents so many health benefits to people travelling a lot on a yearly basis. The benefits include trip cancellation, luggage loss, medical coverage costs and swift health attention in the case of a crisis. This package can keep the insured person rest assured in the eventuality of any unforeseen mishap. This package takes care of dependants as well.

For those making many trips annually, the Multi Trip Insurance package is best for you. The insured person is guaranteed of coverage through his multi trips. If you need trip cancellation funds, then this is for you. Restrictions are thus; length of trip and having a health insurance back home.

It makes insurance easier and cheaper as one does not have to buy insurance policy per trip. Those who travel annually and professionals now have a better option to buying policies per trip.

Check out more information on annual travel insurance and multi trip travel insurance by visiting the links online.

Individual Health Insurance

2011-07-13T13:51:00.001-07:00

The National Health Service (NHS) delivers low-cost or often free medical care to residents in the UK. Eye tests, medical prescriptions, dental treatment and spectacles demand a fee, but youngsters, individuals receiving unemployment positive aspects and pregnant females are exempt from the charges. All UK residents can take advantage of the services of NHS general practitioners and consultation from medical facilities situated in several parts of the country. The rules, procedures and documentation required for access to UK hospitals and general info on healthcare are freely available from the NHS website. Private health cover is necessary for visitors and expatriates.

Individual health insurance is often purchased independently by a single individual, a parent, dependant children or a family. The regulations by which the insurance companies market and sell individual policies varies according to company policy. Individual health insurance can be bought from licensed health insurance salespeople. The alternative is contacting independent brokers who sell insurance plans from many companies and can help you find the most suitable health insurance for yourself. Agents also provide other services like helping clients to process claims. The agent receives a commission from the company on the individual health insurance plan that was sold to you. Hence, you do not have to pay a direct fee to the agent.

Individual health insurance is typically offered by an employer. Options like maternity coverage and substance-abuse treatment may not be included in individual plans. However, if you desire it, you can pay extra for the additional services.

Cost is one problem numerous individual health insurance consumers have an concern with; deductibles (the amount paid just before insurance positive aspects begin) and cost-sharing (the fees paid directly to medical providers at time of service) are normally greater. This will be the reason why advantages in individual policies are usually straightforward.

To buy medical insurance, applicants need to complete a medical questionnaire. In contrast to group health care insurance, a business can decide not to cover people with serious medical conditions like cancer. Insurance companies are permitted to look over a person’s medical history for pre-existing conditions and can choose not to cover specific conditions for an underlined period of time. This is known as ‘exclusionary waiting’.

An applicant must thoroughly read the terms and conditions of any policy he or she is thinking of taking out. It may be the case that money may be saved by taking out a policy for reduced cover if it is decided that it is not needed.

Looking to find the best deal on health insurance quotes, then visit www.healthquotes.co.uk to compare UK health providers such as Simplyhealth

Term life insurance

2011-06-17T11:33:00.000-07:00

Term Life Basics

¹ 30 year term is not available in Washington

² Policies are convertible until the earlier of the end of the initial term period or the policy anniversary at attained age 70. For issue age 65 and over, the policy is convertible for 5 years.

³ Withdrawals and loans from life insurance reduce the policy cash value and death benefit. Loans are subject to interest, which if not paid, increases the loan amount. Cash value accumulation may not be guaranteed. Investments in variable life insurance are subject to market risk including loss of principal.

⁴ If you receive benefits under this rider, the policy can only be converted to whole life.

⁵ Term Conversion Plus is available in most states. Additional terms and conditions apply. Contact a Financial Representative for full details.

Like most insurance policies and annuity contracts, MetLife's policies and contracts contain withdrawal charges, limitations, exclusions, holding periods, termination provisions, and terms for keeping them in force. Contact your Financial Representative for complete costs and details.

Guarantee Advantage Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-34-07 and in New York, only by Metropolitan Life Insurance Company on Policy Form Series 1E-34-07-NY. Equity Advantage Variable Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-46-06 and in New York only by Metropolitan Life Insurance Company on Policy Form Series 1E-46-06-NY-1. MetLife Promise Whole Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-12-10 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-12-10-NY. Guaranteed Level Term is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-21-04 and in New York, only by First MetLife Investors Insurance Company on Policy Form Series 5E-21-04-NY. All are MetLife companies. All guarantees are based on the claims-paying ability and financial strength of the issuing insurance company. Variable products are distributed by MetLife Investors Distribution Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614. Variable products are offered through MetLife Securities, Inc. and New England Securities Corporation; both at 1095 Avenue of the Americas, New York, NY 10036 (member FINRA/SIPC). March 2011

Term Life Insurance provides a cost-effective solution for your temporary life insurance needs and gives you the flexibility to change your policy should your temporary needs turn into permanent goals.

Term Life Insurance is right for you if you want:

An affordable way to get maximum coverage
To cover specific financial responsibilities like a mortgage or college expenses
To supplement your Permanent Life Insurance during periods when coverage needs are higher, such as family-growing, mortgage-paying years

Some things to consider about Term Life Insurance:

There is no cash value accumulation
Continuing your coverage after the initial level premium-paying term expires can be very expensive

Many Grads May Not Get Health Insurance Coverage from Mom and Dad: eHealthInsurance Survey

2011-06-17T11:27:00.000-07:00

Many Grads May Not Get Health Insurance Coverage from Mom and Dad: HEALTH INSURANCE Survey

According to a national survey of college students, graduates and parents conducted in April, 2011 by global insights firm Kelton Research and sponsored by insurance-policy.blogspot,com(NASDAQ: EHTH), nearly four in ten (38%) of parents do not plan to keep their adult children on their health insurance plan until age 26, despite the fact that the 2010 health care reform law now allows them to do so.

Additionally, more than four in ten (43%) parents of college students or grads under age 26 said they would only keep their adult children on their health insurance plan if it cost them nothing to do so.

A provision of the 2010 Patient Protection and Affordable Care Act allowing adult children to retain eligibility for coverage under their parents’ health insurance plans until they turn 26 could potentially benefit young college graduates who may not get a job with employer-sponsored health benefits after graduation. However, staying on a parent’s health insurance plan is not an option for some graduates, and may not be the best choice for many others.

Many parents do not have health insurance coverage and those who do are not required by the law to keep their adult children on their plan. It may be impractical to stay on a parent’s health insurance plan for new graduates living in other states or areas outside their parents’ insurance plan’s provider network. Parents who do want to keep new grads on their health insurance plan may be required to pay additional premium costs.

The eHealthInsurance survey reveals this to be an unpopular option with many parents who may want to encourage their new grads towards financial independence. More than half of parents surveyed (56%) expect to provide their child with financial assistance for only a year or less, or not at all, after graduation. However, nearly two thirds of current college students (63%) think it’s only fair for parents to help them cover their health insurance costs for a year or more after graduation.

The following survey highlights provide additional insights into how college students, recent graduates and parents feel about finances, health insurance and the job market as the next wave of college students are set to graduate this spring. Full results of the Students and Grads Survey and the Parents Survey are available at the eHealthInsurance Media Center.

FINANCIAL INDEPENDENCE – Many of the students and grads surveyed expect, or expected, to be financially independent shortly after graduation (though they may expect help with health insurance for longer). Though somewhat less optimistic, parents largely share the same expectations.

A majority of students (65%) and recent grads (70%) expect to receive either no financial support from their parents or financial assistance for less than a year after graduation
More than one in two parents (56%) expect to provide their grads with no financial assistance at all or financial assistance for only one year or less after graduation

THE VALUE OF HEALTH INSURANCE – Health insurance is universally valued, but surveyed students and grads may be willing to go to greater lengths and make more sacrifices to obtain coverage than their parents are.

Nearly all students (97%), recent grads (97%) and parents (97%) agree that it is important to have health insurance
Most students (94%) and grads (93%) would willingly make sacrifices or give up at least one small indulgence like a weekly night out at the movies or dinner, or their daily coffee, if it meant they could afford health insurance
Almost two in three students (63%) and grads (66%) think it’s fair for parents to help their children cover health insurance costs for a year or more after graduation
- Over half of parents (58%) agree
  - And yet more than four in ten parents (43%) with adult children under age 26 would only be willing to keep their children under their own health insurance plan if it cost them nothing
  - More than one in two (57%) current students think it’s more important for grads to take a job they don’t like but which offers benefits like health insurance or a retirement account
  - By comparison, fewer than half of parents (46%) feel the same way

CURRENT HEALTH INSURANCE STATUS – Many of the surveyed students get help from Mom and Dad when it comes to health insurance. Compared to 2010 survey responses, more grads are now covered by plans paid for by their parents, but this still only accounts for a minority of respondents.

Over one in two current students (52%) are presently covered under health insurance plans paid for by their parents
Only three in ten recent grads (31%) are currently covered by a health insurance policy that is paid for by their parents
- By comparison, last year’s survey indicated that significantly fewer grads (14%) were covered by plans paid for by their parents

COST EXPECTATIONS FOR INDIVIDUAL HEALTH INSURANCE – When it comes to purchasing health insurance coverage on their own, grads and students surveyed expect they’ll have to pay somewhat more than they consider fair.

Students expect to pay more ($204 on average) for a private health insurance plan of their own than recent grads ($171 on average)
- And yet both are willing to pay more than may be necessary; according to a survey of plans purchased through eHealthInsurance, monthly health insurance premiums for individual coverage of 19-26-year-olds was $113, as of February, 2010¹
- Both students and recent grads think a fair price would be somewhat more affordable ($155 for students and $126 for grads)
- A fair price in parents’ minds, however, would be $148 on average per month

THE JOB MARKET AND HEALTH INSURANCE - A majority of both the students and grads surveyed expect to receive health insurance coverage as a benefit of employment. However, the survey documents a division between expectations and reality, and recent grads have a more pragmatic approach to health coverage.

Asked to identify “non-negotiable” employment benefits from a list, more students (38%) and grads (39%) said they would pass on a job that didn’t offer health insurance than any other benefit
More than three in four students (80%) and about as many recent grads (73%) expect(ed) their first job after college to provide them with health insurance
- However, only 31% of grads report currently having employer-based health insurance
- More recent grads (74%) than current students (54%) think it’s better to live at home with Mom and Dad for the first year after college if it means having health insurance, rather than live on their own and go uninsured

HEALTH CARE REFORM KNOWLEDGE – The survey shows some gaps in the students’ and grads’ knowledge about health care reform.

Clear majorities of both students (65%) and grads (59%) consider themselves informed about health care reform
However, although most students (53%) and grads (63%) know that, as a result of healthcare reform, they are now eligible to stay on their parents’ health insurance plans until age 26,
- Over two in ten current students (21%) and 19% of grads think that subsidies are available in 2011 to help people purchase health insurance –
- And a similar number of grads (23%) and students (16%) think that college graduates are required to purchase coverage on their own in 2011
  - IN FACT, these provisions of the health care reform law don’t take effect until 2014
  - Only two in ten students (20%) and grads (20%) know that new health insurance plans now provide better access to preventive care

Methodology of the Surveys:

The eHealth College Student and Grads Survey was conducted by Kelton Research between April 21st and April 29th, 2011, using an email invitation and an online survey. Kelton Research surveyed a sample of 255 full-time college students ages 18-30 and 251 recent college graduates ages 18-30 who are in the workforce or seeking employment.

The eHealth Parent Survey was conducted by Kelton Research between April 21st and April 29th, 2011, using an email invitation and an online survey. Kelton Research surveyed a sample of 500 parents of full-time college students or recent graduates who are in the workforce or seeking employment.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results.

For the sample of college students, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 6.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. For the sample of recent college graduates, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 6.2 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

In the eHealth Parent Survey, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 4.4 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

Notes

¹ The 2010 plan data referred to in this survey is derived from a national sample of over 90,000 individual major medical policies purchased through eHealthInsurance by individuals aged 19-26 that were active in February 2010. The premium data is derived from information received from health insurance carriers relating to the actual premiums being paid by policy holders in the month of February 2010. Actual premiums may differ from premiums quoted on the eHealthInsurance website because they represent the premium being paid after underwriting and for policies that were purchased prior to the date of analysis.

Banking, insurance stocks help KSE gain 13 points

2011-05-28T06:35:00.000-07:00

Despite selling of index mover Oil & Gas Development Company, across the board buying particularly in insurance sector helped the Karachi bourse successfully cross the immediate resistance level of 9,900 points on Friday.

The KSE 100-share Index slightly moved up by 13.32 points or 0.13 per cent and closed at 9,902.62 points. Its junior partner the 30-Index increased by 31.43 points or 0.31 per cent and concluded at 10,295.24 points.

Despite of the fact that the international oil prices further rose to $78 a barrel reportedly, the oil giant Oil & Gas Development Company fell in red, alone losing over 25 points on the key benchmark 100-Index. Two other exploration fellows, the Pak Petroleum and Pak Oilfields along with giant oil marketing company the Pakistan State Oil also declined into the red region. The telecom sector was also subject to profit booking and settled in negative column.

On the contrary, the banking and insurance sectors performed in green territory ahead of their expected good financial results.

Ahsan Mehanti at Shahzad Chamdia Securities said that positive activity witnessed on strong result announcement expectations in banks and insurance sector scrips ahead.

Investors remained bullish on continuing foreign investment in Pakistan capital market. While further increase in international oil prices to $78 a barrel, indications for last tranche release of funds under Kerry Lugar bill of US and expectation of early introduction of financing (leverage) product played a catalyst role in positive activity at KSE.

Furqan Punjani at Topline Securities said that weekend affect along with selling pressure in regional markets induced investors to close their position, allowing index to post a meager surge. Market during the session tried to test 10,000 points but failed to do so. Banks and insurance remained in limelight because of coming corporate results along with continued activity in tier two stocks.

The day turnover again surged to 171.97 million shares from 140.54 million shares changed hands yesterday. Turnover in futures market fell to 3.63 million shares as compared to 5.37 million shares yesterday. Market capitalisation was up five billion rupees at Rs2,847 billion.

Hasnain Asghar Ali at Aziz Fidahusiens said that excitement linked to stock dividend, public offer ahead of mergers and sale of strategic holdings kept the banking sector stocks moving up.

Insurance giant entered the band wagon with a bang after a prolonged silence, as the stocks are yet to announce their annual results. While short covering triggered due to cautious accumulation by corporate participants in the other stocks of the group allowed various trading opportunities to day traders, he added. Out of total 397 active stocks, 203 stocks advanced, 175 stocks declined, while the value of remaining 19 stocks closed unchanged.

Highest volumes were witnessed in AH Securities at 19.54 million closing at Rs51.17 with a gain of Rs1.60, followed by Mybank at 14.96 million closing at Rs5.79 with a gain of 19 paisa, National Bank at 7.94 million closing at Rs83.75 with a gain of Rs1.54, JS Company at 7.67 million closing at Rs28.25 with a gain of 10 paisa, and Bank of Punjab at 7.66 million closing at Rs20.13 with a gain of four paisa.

End.