Secretary of Health and Human Services Kathleen Sebelius said some states are already regulating premiums well, others can do a better job. “Some states have full and rigorous rate review and [the right of] prior approval, so before a company raises a rate it goes through intense actuarial analysis. . . . In others the company doesn’t even have to file [with state authorities],” she told the Washington Post.

The states that already regulate premiums closely will be using the grant money differently than states who don’t. For example, Maryland already has a system in place for regulating insurance premiums. Officials there say they’ll use the $1 million to hire consultants to investigate what additional data needs to be requested from insurers. Some states say they plan to start requiring insurance companies to get pre-approval before any rate increases are implemented. Delaware Insurance Commissioner Karen Weldin Stewart thanked the Obama administration for the money. “This important grant will help my department and I not only protect Delawareans from redundant rate increases, but will also allow me to pave a critical path toward modernizing our approaches in reaching the goal of affordable, accessible and first rate care for all,” Stewart told the Dover Post .

Starting in 2014 states will have the ability to punish insurance providers that raise rates unreasonably. They’ll be able to exclude those companies from subsidized state-run insurance programs. Five states opted out of the first round of grant money. They are Alaska, Georgia, Iowa, Minnesota and Wyoming.

While insurance companies argue that rate increases are a direct response to rising medical costs, Sebelius believes there needs to be better oversight of the industry. “Just having transparency . . . in itself is going to change the dynamics of what is happening in terms of the massive rate increases in this country,” Sebelius told the Washington Post.

States Get $1 Million To Keep Tabs On Insurers is a post from: Peppercoin Insurance

Accident Forgiveness: In the past, every time you got in an accident your insurance premiums soared and you ended up paying way more. But now many insurance companies are offering accident forgiveness. If you’re in an accident that is your fault, accident forgiveness will protect your driving record and prevent your rates from skyrocketing.

Deductible Rewards: Many insurance companies have realized how annoying it is to be a great driver, but not get any incentive for it. Now with deductible rewards the insurance company will take a certain amount of money off of your Collision deductible every year you go without having an accident.

Safe Driving Bonus: When you don’t get into accidents, the insurance company doesn’t have to spend any money on you. Now some companies are giving you a piece of your money back as a reward for being a safe driver. Every six months to a year they’ll cut you a check if you haven’t had any issues. The amount of the check is usually equal to a small percentage of your premium.

New Car Replacement: This term is just like it sounds. Since cars lose their value so quickly, drivers who totaled their new cars ended up with a bad deal. They’d get the money equal to what their car was worth, which worked out to be a bad deal. Now some auto insurance providers are promising to give you a new car if yours is totaled within the first three years– not just the depreciated value.

Auto Insurance Terms Defined is a post from: Peppercoin Insurance

Now, if insurance companies want to raise rates, they have to apply for approval first. “Before, health insurance companies could raise premiums as much as they wanted, and all we could do is check long afterward if, in fact, they were overcharging,” David Neustadt, spokesman for the New York State Insurance Department, told DOTmed News. “The current rates are increasing at a much faster rate than before [the file and use law].” This way governing bodies can make sure any increases are justified, and not just created by insurance companies so they can increase bottom lines.

The law will impact any rate increases set to take effect on or after October 1, 2011. “I applaud New York on its bold move to hold insurance companies accountable and prevent the kind of unreasonable rate increases that have made health insurance unaffordable for many American families,” said U.S. Health and Human Services Secretary Kathleen Sebelius in a statement, according to dotmed.com. “This is the kind of action that, together with the Affordable Care Act, is shifting power back to consumers.”

New York Stops Unauthorized Health Insurance Premium Increases is a post from: Peppercoin Insurance

According to reports, Sebelius wanted to hear from the executives as to why there was a recent jump in premium rates in several states. “I asked them to explain why these crushing burdens are being placed on middle-class families and what we can do to lower costs,” Sebelius said in a report on Insurance Networking News. “I also asked the CEOs to post the actuarial justification for these stunning rate increases online in an easy-to-understand manner, so that consumers can see why premiums are skyrocketing to the point that some people in the individual market can no longer afford coverage. I hope they will act quickly and make this information available to all of us. If insurance companies are going to raise rates, the least they can do is tell us why.”

The report says that Aetna CEO Ron Williams defended the increases, saying they were reflective of costs that insurance companies were paying to drug makers, hospitals and other health-care companies that were forcing increases to the cost of medical care. “The rate is really reflective of our other parts of the health-care delivery system,” said  Williams in a Wall Street Journal report. They said that trying to lower premiums without addressing those costs was destined to fail.

NAIC’s President says the hikes are another example of why all states need to be allowed to regulate their own insurance premiums. “State regulators are best positioned to perform rate review and many of us do so with great success,” said Jane L. Cline, NAIC President and West Virginia Insurance Commissioner. “Some, however, have not been given the authority by their state legislatures to review and deny unjustified increases. We believe that a federal backstop could help encourage these legislatures to provide that authority.”

Sebelius asked the CEOs to post information online that explains their breakdown of revenue including how much goes towards administrative costs, how much is spent on marketing and what goes towards actual care. She said making that information easy to access by consumers would increase transparency about what is happening in the health care industry and why rates are increasing.

White House Wants Answers On Increased Insurance Premiums is a post from: Peppercoin Insurance

While health insurance is a must, it can be hard to reconcile these two points. If you are already self-employed then it is likely that you have already faced these challenges, but what if you are newly self-employed?

Before You Become Self-Employed

Presumably you hold a job and have health insurance at your current job before you make the leap to self-employment. If you know that self-employment is in your future then you will want to plan ahead for this life change. The more time you have the more planning you can do so take full advantage of this time before you make the change.

You will want to take any opportunity you have to change to your employer’s cheapest health plan, as long as it will still work for you, before you depart from the company. While you will need an open enrolment period to accomplish this feat, if you have then chance then you should go for it. It will make life a little less expensive in the next step.

Hold On To Your Health Insurance

Even when you leave your job, you can hold on to your health insurance through COBRA. This act allows you to keep the insurance that you have now for as many as 18 months at groups rates provided the company you were at meets certain criteria and you were not fired for reasons such as incompetence or gross negligence.

This will help you to hold onto your coverage but the price of maintaining coverage while you are self-employed will be steep. Know this ahead of time. It has been estimated that individuals who get their insurance through an employer end up paying around 28% of their health insurance costs. Now you will be paying it all.

Marriage Benefits

If you have a working spouse then your insurance concerns may be nonexistent. You can just get on your spouse’s plan. This will be the next most cost effective option after getting insurance through your own employer.

Find New Coverage

If you do not have a spouse who can have you on their health insurance plan then you will need to make other arrangements. Your time with COBRA is not a time to rest easy. This is your chance to investigate the options that you have for personal health insurance. You want to scramble to compare plans, rates, and coverage because your COBRA period will be over sooner than you think.

You will have to find a policy that offers the coverage that you need at a price you can afford. You can always consider lowering insurance premiums by raising your deductible. You need to make sure that you will be able to pay this higher deductible but if you can then this is an easy way to get your hands on affordable health insurance payments.

This is the best path to health insurance for the newly self-employed. You want to plan ahead, use COBRA to ease your transition, and use the time that you are given to secure new health insurance coverage. Being your own boss means that you are the one taking care of the details and health insurance is one of the first that you need to take care of.

The Best Path To Health Insurance For The Newly Self-Employed is a post from: Peppercoin Insurance

In general the proposed rules give insurance companies much more leeway when it comes to handling what it suspects are fraud cases. For example, one proposal is to make it easier for insurance companies to dispute health care charges that exceed appropriate free schedules. In another proposal the insurance company would be allowed to suspend medical payments related to the insurance claim if fraud on the part of the medical clinic is suspected.

The New York State Insurance Department has been working hard to find ways to reduce auto insurance fraud because consumers pay higher rates than would be required if fraud was lessened or eliminated. Currently New York Drivers are paying the second highest auto insurance rates in the United States. The cost of fraud cases is passed on to consumers through insurance premiums and is often called a fraud and waste tax.

No fault automobile insurance coverage allows a victim of a car accident to file claims with his or her own insurance company to collect medical payments and lost wages. It does not matter who caused the accident and thus the no-fault designation. But some of the costs of the no fault claims is related to court cases involving disputed medical claims.

The proposed regulations would make changes to the medical forms so insurance companies are better able to determine legitimate claims. This could speed up the settlement of legitimate claims. Some of the proposed regulation changes benefit the insured directly. For example, auto insurers would have to schedule medical exams for the insured so the exams are conveniently located and at reasonable times.

Another proposal is to increase the maximum attorney fee so the insured can be adequately represented. A minimum attorney fee would be eliminated in an effort to promote consolidation of claim cases.

Fighting waste and fraud with regulatory changes in the New York auto insurance industry is important if consumers want to see their insurance premiums contained over the coming years. The New York State Insurance Department has a fraud division that specializes in investigating fraud cases. Some of the fraud cases are instigated by organized groups that involve medical clinics and even attorneys and they operate throughout the state.

The changes to Regulation 68 are still in the draft stage and comments from the public are welcomes. It is expected that most changes as proposed will be adopted along with others being suggested. The consumer is likely to benefit once that happens as auto insurance costs are contained in the state of New York.

New York Making No Fault Auto Insurance Changes To Reduce Fraud is a post from: Peppercoin Insurance

For example, the fraud division handled 2,600 auto insurance fraud cases. Consumers should be concerned about this because fraud can lead to higher insurance expenses that are passed on through increased rates for all customers.

The State of Maryland has told consumers they don’t need to be concerned about the rising number of auto insurance fraud cases because the fraud division is investigating all reports. Of the 2,600 fraud cases, 1,300 of them were referrals.

In other words, they were reports of fraud sent to the fraud division. Because all reports of fraud are investigated the potential impact on insurance premiums is minimized since money will be recovered in many cases as a result of state investigations.

Auto insurance fraud can take many forms. For example, trying to charge an insurance company for auto damages that were not incurred as a result of a covered accident is fraud. Another type of fraud is called a “give up”. A give up is when an insured drive reports a vehicle is stolen when in truth it was not.

Why is the number of auto insurance fraud cases rising? The reason in Maryland and in other states seems to be the ongoing recession. According to Henneman, people committing auto insurance fraud are doing so to obtain money. With the economy in such poor condition and unemployment rising, many consumers are having cash problems. They pay their premiums for years and some begin to tell themselves it is time for the insurance company to return some benefits.

This kind of thinking leads to insurance fraud. For example, there have been cases of people setting old autos on fire and then filing a claim

Maryland has a progressive fraud reporting system which is why the state reassures consumers worried about higher premium they have little to worry about. Insurance companies can enter information about suspected fraud into a national online database. The information is then sent to the appropriate state for investigation. Being able to input information into a database speeds up the investigation process considerably.

There are 46 states that currently use the national secure database system for suspected fraud reporting. The Maryland Insurance Administration also participates in the Washington Area Vehicle Enforcement program and the Baltimore Regional Auto Theft Task Force.

When the recession started, law enforcement officials across the nation told the public that they expected to see an increase in many crime categories. When money is tight and unemployment is high, people get desperate. As the old saying goes: desperate people do desperate things.

The 2,600 auto insurance fraud case number is an estimate because cases are still being investigated. Some may turn out to be legitimate.

Fraudulent Maryland Auto Insurance Reports On The Rise is a post from: Peppercoin Insurance

Renter’s insurance functions in the same way that homeowner’s insurance does, because the main element of protection is for the renter’s personal possessions against damages or theft. If you are unfamiliar with renter’s insurance, you should find out which insurance agencies offer renter’s insurance policies and what kind of protection they are offering.

The different policies offer differing levels of protection for all the policyholder’s personal property. These items covered may include furniture, clothing, appliances, electronics, or other personal items. Protection against losses incurred by vandalism, theft, fire, or natural disaster is included in the coverage.
Compensation for the losses may be awarded in these situations. There is also coverage to protect other people against injuries sustained accidentally while they are on the rental property.

Coverage that is more complete can be found in the renter’s insurance policies in order to provide needed protection in other areas. It should be obvious that in order to receive this added coverage you will be charged more for the insurance premiums. It is a wise move to obtain protection for you and the others who may be on your property.

There are four main types of renter’s insurance to be familiar with; they are personal property coverage, personal liability coverage, improvements coverage, and fire legal liability coverage.

With personal property coverage, the main area of protection you are wishing to cover is your personal processions. If any of these articles should be damaged or stolen, a claim can be filed to receive compensation for the lost items. This compensation will be based upon a percentage of the total estimated value. The renter is responsible for reporting what the value of his processions is and adding them to an itemized list that the insurance provider will keep.

Personal liability coverage is for the protection of the renter and anyone who may visit the premises. If a person who is visiting you or just happens to be on your property is injured in some manner, you will not be held liable for the injuries. You will not be responsible for legal or medical costs. These types of policies may offer about $100,000 in protection.

Improvements coverage will offer a renter protection from lawsuits when the property is damaged on the rental property. This coverage will provide the funds to repair or make improvements in the rental property.

Fire legal liability offers protection against legal liability in case there is a fire on the premises, so the owner of the property cannot hold the renter responsible or liable for damages caused by the fire.

There is not one particular type of renter’s insurance that is best for every renting circumstance. If you are considering the purchase of renter’s insurance, you are the one who knows exactly what you need in the area of insurance protection. There is a definite advantage to being protected against liability when you consider all the possibilities of damage or loss or injury. If renter’s insurance is something you can afford, it is a wise investment to make.

Recent additions:

• Obtaining Homeowner’s Insurance At A Reasonable Cost
• New Auto Insurance Policies for Teenagers
• Motorcycle Insurance
• Credit History And Auto Insurance
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• How To Buy And Use Your Auto Insurance Policy

Why Should You Have Renter’s Insurance is a post from: Peppercoin Insurance

The life insurance companies have to follow certain criteria in determining the amount of the premiums that they can actually charge their customers. The attention is focused on the level of risk with may be associated with the lifestyle of their customers. The insurance company will evaluate your relative health and lifestyle and look for some reasons to suggest that you may die sooner or within the limits of your policy. If your lifestyle is in any way considered to be at a higher risk of these events then the company will be able to charge a higher premium for your coverage. The insurance companies will determine that a prospective customer’s lifestyle, age, and health are all potential causes to charge higher premium amounts.

Generally, the cost of life insurance has been decreasing over the past ten years. According to many independent reports, this is true for both men and women who do not smoke. In this same ten year span the lower costs are said to be the consequences of a longer lifetime for both men and women. Women do have a longer life expectancy than men have, so they will pay a smaller premium for life insurance. Premiums do increase as a person ages, so the sooner life insurance is obtained the less your coverage costs.

Certain health issues such as high blood pressure, obesity, high cholesterol, and diabetes can all affect the cost of life insurance. Smoking and obesity are both the conditions which can cause an increase in premium costs. A 35-year old male smoker can expect to pay about 26 to 30 dollars more for his life insurance, and an obese person may have to pay about 50% more for coverage. These conditions mean a higher level of risk for the insurance company because they can reduce life expectancy.

Your family’s medical history as well as your own health condition can help determine the cost of life insurance premiums. A condition such as heart disease, cancer, or diabetes an cause an increase in the cost of insurance coverage; it doesn’t matter whether you have the condition or if a family member has it.

If you have a risky occupation, such as a high-rise window washer or a racecar driver or if you engage in hobbies that pose a risk to your well-being such as mountain climbing or motor cycle racing, your premium will be higher. With a low risk lifestyle the most important factor in determining the premium cost is your health condition. When you apply for coverage, it is very important to be honest about your lifestyle and health because false information will invalidate your policy.

Recent additions:

• What You Should Know About Term Life Insurance
• Variable Life Insurance
• Universal Life Insurance
• Student Health Insurance – How To Find The Best Quote
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• What Type of Life Insurance Should You Buy?

Causes Of Higher Life Insurance Premiums is a post from: Peppercoin Insurance

It important to be insured against a wide range of possible risks should you have any kind of claim on your auto policy. Of course, in the real world the amount of insurance cover that you have for your vehicle will be planned on how much you feel you can afford to pay for the monthly or annual premiums.

You need to select an appropriate level of cover for yourself and your vehicle, what this means is that you do not in reality need collision auto insurance if you car is only valued at $3000. Although it would be good to have your car paid for if it were to be heavily damaged, would be wise if insuring the vehicle would cost you $2000 every year?

It would probably be wiser to insure this type of car for your states minimum legal auto insurance requirements. The money that you save could be them be put against any possible damage, or loss of the vehicle in the form of ‘self insurance’. One drawback is that regardless of the value of your vehicle it is still capable of inflicting the same amount of damage to another vehicle, or people as an expensive car.

Liability coverage will offer you some protection against these possibilities’, such as bodily injury or replacement of another person’s car. Unfortunately, the limitations of Liability coverage tend to be low and may well not cover the other person’s actual losses. An online agent would be in a position to give you the best detailed possibilities for this type of cover as well as any variable coverage options that may be suitable for your needs.

You should only consider taking out auto insurance only from a reputable insurance company. Taking on insurance from company that is not solid is a bad deal, even if they offer the very lowest premium available. Remember what you pay is only half the deal, what you get back should you need to make a claim is the other important factor.

Do not be blinded by simply searching for the cheapest quote, you need to combine this with a company that has a best reputation that you can afford. Again, an online broker will be able to assist you with this tricky decision.

Any good auto insurance company should have substantial corporate assets in the US; many insurers now come from outside the country, which is fine, as long as they have a large amount of funds in America ready to cover any claims.

They should also be registered with your states own insurance commission and obviously should also be licensed to sell insurance in your state. You also need to ask your agent about the company’s reputation for handling claims, speed of settlement, financial backing and general customer service. It is no good discovering that they fall down in these areas after you come to make a claim, remember the premium is only half the deal.

Recent auto insurance articles:

• Understanding Your Auto Insurance Policy
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Auto Insurance Premiums Are Only Half The Deal is a post from: Peppercoin Insurance