Aswaat Insurance Information

Archive for the ‘State Insurance’ Category

State insurance carriers offer hail insurance, life insurance (http://www.equote.com/li/nomedicallifeinsurance.html), workmen’s compensation insurance, unemployment insurance, disability insurance, second-injury funds, and Torrens title insurance. Of course, in the beginning not every state had all these funds. In fact, only Wisconsin had a life fund at first; and very few states had hail insurance, title insurance, or disability funds.

Hail insurance funds were established in North Dakota, South Dakota, Montana, Oklahoma, Colorado, and Nebraska to indemnify subscribers for losses to their tillable acreage resulting from hailstorms. However, only North Dakota, Montana, and Colorado had operating plans for some time. The oldest of these funds is the North Dakota fund, established in 1911.

The law relating to this fund underwent several changes since then and represented an interesting practice in state insurance. The fund was under the direction of the insurance commissioner and was operated by an appointed manager. The insurance was actively solicited by the district tax assessors. In addition, the county auditor stood by to accept applications between June 1 and July 15.

The amount of insurance written for each applicant was limited to either $5.00 or $8.00 an acre, to be stated at the time the insurance is written. Premiums were paid in the form of an indemnity tax which was levied at the next tax period after losses were experienced. The size of the tax depended upon losses and expenses for the period. The maximum overall tax was limited to 10%, although this maximum would vary from district to district.

At the inception of the plan a surplus fund was established from a special tax on all tillable land to assure its solvency. Loss adjustments were handled by officials of the fund, and loss payments were made by means of tax warrants on the state treasury. It should be obvious that the cost of operating such a fund was low and that the insurance it provided was inexpensive.

An affordable life insurance (http://www.equote.com/info/life-insurance-info.html) fund entirely controlled and operated by the state of Wisconsin was established after the state legislature in 1911 authorized the commissioner of insurance to issue life insurance on residents of the state. The state assumed no liability other than the fund itself.

The first policy was issued in October, 1913. Administration of the Wisconsin state fund was in the hands of the state treasurer. The conduct of the business was left to the insurance commissioner of the state. The State Board of Health assisted in medical selection. The treasurer of the state was the treasurer of the fund. The secretary of state audited the accounts submitted to him by the audit board, all other members of which were officials.

The fund had no agents and did not engage in the type of advertising undertaken by the Savings Bank Council on behalf of savings bank low cost life insurance. There was no management or occupancy expenses, only some clerical salaries. Applications were taken through designated state, county, and city officials and state banks, by which they were forwarded to the commissioner.

At least partly as a result of what amounts to a government subsidy (state payment of management and occupancy expenses from other funds), the rates of the fund were generally lower than those of commercial old-line participating companies. Despite generally favorable rates, progress of the fund was slight, apparently from the lack of either sales effort or advertising (which is simply a form of sales effort).

Auto insurance is one industry which always remains full of activity due to several various reasons. Most of the potential auto insurance buyers do not get correct and timely information about the suitable coverage they need, the extent of risk that must be covered by them, cost of coverages, claim processing, customer service, etc. For this very reason, the internet has provided a way to help consumers complete a car insurance comparison to ensure that they are receiving reliable protection from a reputable company at an affordable price. Individual’s need to also take the time to understand the limits which are required by their particular state in order to be properly protected and abide by the state’s laws. Like any other state, Michigan requires that each owner and driver of an automobile must carry the proper liability coverage and it must be maintained at all times while their vehicle is being operated.

 

Minimum Liability:

Michigan auto insurance laws require No-fault insurance and it is against state law to operate a car without no-fault insurance. The minimum limits of a satisfactory policy issued has three parts:

 

Minimum BI/PD coverage limits for the state of Michigan

Up to $20,000 for a person who is injured or killed in an accident. Up to $40,000 for more than one person are hurt or killed. Up to $10,000 for property damage.

 

These limits are often described as 20/40/10.

However, in case of legal proceedings, courts sometimes award more than these minimum limit amounts. In such case, the insured would be responsible for paying the amount not covered by the limit on the policy. To protect themselves against these situations, consumers should compare additional coverage in order to ensure that they have adequate protection. If within a person’s budget, they can choose higher limits to protect against incurring financial hardship in the event that they are involved in a collision in which they are found to be at fault and their policy’s payout has been exhausted.

Obtaining and comparing auto insurance quotes for higher amounts of liability may surprise many, as they may find that the difference of being covered more extensively may not be as expensive as they thought. Similarly, there are some optional insurance coverages one may wish to consider. These optional coverages are not mandatory but can prove to be quite beneficial. Such options include collision and comprehensive coverage, which unlike basic liability, will compensate the insured if they suffers a loss and not just the other party.

The advantage of utilizing the internet for the purpose of receiving prices for premiums is that within minutes, web surfers can receive multiple rates from a variety of insurers. This gives them the opportunity to compare not only prices but the companies as well. Although price is important, the integrity of an insurer should be considered as well. There are agencies that rate carriers that anyone can access to help determine who they would like to do business with. The internet also provides a way for potential customers to make a comparison of different types of coverage which may benefit them. Quotes can be provided to inquirers free of charge and with absolutely no obligation. The option to purchase is also made available so that customers can become insured instantly and receive instant proof of insurance.

Washington State Insurance Commissioner Mike Kreidler is standing up to the insurance industry when it comes to defending his decision to vote “Yes” on Referendum 67. Insurance companies have pumped in nearly $10 Million to defeat the pro-consumer measure up for a vote this November.

The major argument advanced by the insurance industry’s opposition to Referendum 67 is that everyone’s insurance rates will skyrocket. Not true says Kreidler:

“If (insurance companies) act in good faith, there are no costs associated with Referendum 67,” said Kreidler.

“[Passing Referendum 67] is a way of making sure that you have some way of being able to stand toe to toe with insurance companies that can well afford to delay and go to court and have strong legal recourse available to them that go well beyond the average person.”

The Office of Insurance Commissioner fielded more than 2,700 complaints last year.

Kreidler states, “What I presume that I see are like the tip of the iceberg,” he said. “A large share of the referrals to our office come from the insurance company’s own agents … It’s agents who are unhappy or telling their clients that ‘I don’t think what they are doing to you is fair. Why don’t you call the Insurance Commissioner’s Office?’ “

Kreidler also said it’s common for opponents of consumer-protection laws to advance unfounded claims before an election. “I remember the same arguments two years ago when medical malpractice came up as an issue. The people of the state of Washington rejected the ballot issue and, of course, the prediction at the time was that the rates would continue to go up. Well, they didn’t pass it, and the rates have gone down,” he said.

Kreidler says that if rates do go up, it won’t be because of the legislation. It’ll be because insurance companies choose to increase the rates. “The assumption here is that (the companies) will be paying out more in claims, but the other assumption is that maybe they should have been paying out more to begin with, if these were reasonable claims that they were artificially denying,” Kreidler said.

What should the public do this November? Well, if citizens want to create a level playing field with the powerful insurance industry, they should vote “Yes” on Referendum 67. There’s no question that the industry has gotten fat off of denying and delaying the payment of legitimate claims for years. That’s why more than a dozen insurance companies are spending more than $10 Million to defeat the measure.

Are we so gullible to believe that the industry is spending millions out of the goodness of its heart merely to protect the public from having to paying a few hundred dollars more in insurance? Ha. If the state Insurance Commissioner calls the industry’s position bogus, that’s good enough for me.