After reading a tragic story Wednesday on CNN.com, I was reminded of the importance preparation plays in avoiding unnecessary death at home.

According to CNN.com, a 6-year-old girl who lived in Pennsylvania with her family escaped a house fire the previous day—only to run back inside to get her mother, whom she mistakenly thought was still there.

Unbeknownst to the girl, her mother jumped to safety from a second-floor window. The child perished inside while searching for her.

The thought of that little girl inside her home calling out her mother's name just broke my heart!

Since I just purchased a new home of my own, it also reminded me that I needed to establish a fire escape route and prepare my family should, God forbid, we ever face such an awful crisis ourselves.

If you've never thought about what your family would do in case of a home fire, the Insurance Information Institute (I.I.I.) recommends these simple steps to protection:

• Install smoke detectors and familiarize your family with the sound of the alarm.


• Plan an escape route from your home. If possible, every room should have two escape routes.


• Remember that smoke and heat rise. When you encounter smoke, crawl on the floor where the air is cleaner.

Don't let your children or loved ones end up like the little girl in the story above. Prepare yourself, them and your home for fire.

You may never need it—but then again, you just may.

Posted by Penny Hagerman at 04:10 PM | Permalink
 

According to CNN.com, scientists in Venezuela have found the secret to flatulence-free beans.

It turns out that two bacteria, Lactobacillus casei and Lactobacillus plantarum, can be added to beans to cause "minimal distress" to people who eat them.

You don't want to know how scientists made this discovery, so I'll let you read the article for yourself.

I realize that legumes are an important part of many cultures, and as such, this is probably a cool discovery to some folks. However, I can't help but think that scientists are better off spending time and money on curing diseases and such. But I love Mexican food, so maybe I shouldn't complain.

[Hat tip: Fellow InsureMe blogger, Penny Hagerman :) ]

Posted by Megan Mahan at 03:43 PM | Permalink
 

Traditionally, warmer weather tends to give this country the travel bug, and now there are some new tools available to make finding and booking flights easier.

Yahoo! has made some upgrades to their service and you can now use the search field to find the cheapest flights from all over the web.

Check out my search. I'm thinking about flying back to the Midwest for my grandmother's 80th birthday party next month, I just entered, "flight Denver to Chicago" into the search field and got this:

It's here that you can change travel dates to your exact specifications.

After selecting my dates, I hit the "Search Fares" button and received a comprehensive list of airfares from all over the web. You can edit your flight preferences, including departure and return flight options.

What can I say? I sort of fell in love with it. I'll probably still receive alerts from AirfareWatchdog.com, but the new Yahoo! FareChase is awesome. No more hopping from travel site to travel site.

Big hat tip to James Omdahl at the InsureMe Affiliate Blog for the enlightenment.

Posted by Megan Mahan at 04:10 PM | Permalink
 

The weather in springtime always amazes me...and it seems to change on a whim...one day sunny and bright, the next day cloudy and cool. And when those dark clouds move overhead, I always wonder if they're bringing hail, too.

I grew up in Oklahoma, home to the National Weather Service, and I've faced many springtime storms in my time, including tornadoes, flooding and hail. So turbulent weather this time of year is something I'm used to.

It wasn't 'til I bought my first home that I understood how these storms can ravage rooftops—and preceed an onslaught of home insurance claims.

What do you think is the most common homeowners claim filed after a brutal spring storm? You got it—hail damage. In fact, many people are just waiting for a hailstorm to come along so they can file that claim and get a new roof—a strategy that doesn't always pay off.

The Wichita Eagle, a local Kansas newspaper, came out with a story today about what to do following a hailstorm.

Here are the writer's recommendations, in a nutshell:

• Look for pieces and granules of roof shingles on the ground. This is a good indication of rooftop hail damage.
• Check your deck. If hail has marred or indented the wood on your deck, you probably have roof damage, too.
• Examine your gutters. If the undersides are dented, the damage is probably more extensive than meets the eye.
• Climb a ladder and take a closer look. If the attached shingles are dented or cracked, it's time to call your insurance agent.

If you think you might have hail damage, only a professional roofer or your insurance agent can tell for sure. But be forewarned: your insurer will most likely only reimburse you enough to restore your roof to its pre-storm condition.

On that note, here's to spring rain (no hail, thank you very much!) and May flowers.

Posted by Penny Hagerman at 02:37 PM | Permalink | Comments (2)
 

If you haven't heard, the mumps are wreaking havoc in the Midwest...and they could be heading to a town near you.

Turns out someone brought the virus to the Midwest after traveling to the UK during a one of their recent outbreak periods and, well, the mumps is now running amok.

Because I worked at the University of Iowa's student health center during college, I know more than any normal person should about immunizations. Here's the scoop:

Around 1986 or so, pre-schools and kindergartens started to relax their inoculation requirements and as a result, some kids received only a measles, mumps and rubella (MMR) shot as an infant and didn't receive the booster shot before starting school—making some people more susceptible to the current mumps outbreak than others. The good news, however, is that aside from the sore and swollen saliva glands and jaw area, it's a fairly mild viral infection and today doesn't pose much of a serious threat.

If you think you or your child missed their second dose of the MMR, you can get the vaccine at your physician's office; many clinics in the Midwest are currently holding massive MMR clinics, which might be a cheaper and easier alternative for you. And if you're scared of needles, you're in luck—the MMR is one of the safest and most painless vaccines you can get.

With the first confirmed case of mumps reported in Colorado today, I may schedule an appointment myself. I'm a small girl and big jowls would probably be more than my head could handle.

Posted by Megan Mahan at 05:09 PM | Permalink
 

Recently, The Today Show has been presenting segments on medical tourism—people who travel to other countries for discounted dental and surgical work. What kind of discounts are people getting? Anywhere from one-eighth to one-tenth the cost of what medical procedures would cost in the states.

Friday's show reported on the thousands of people traveling to Mexico for dental work. This wasn't news to me; over a year ago my grandfather drove across the border from Sun City, Arizona for a root canal and got what he says was "the best dental work" he's ever had.

The going price for a root canal in Mexico: about $250...compared to about $1,800 in the states.

There are a couple basic reasons for the price disparity:

• The cost of labor is cheaper
• Rental space (for dental practices) is cheaper
• Lab work (including x-rays) is cheaper

The Mexican city of Algodones is now home to over 300 dentists—in a four-block radius. Now, over 15,000 tourists a day are crossing the border to get dental work done there.

More and more tourists are also traveling to India, Thailand, Costa Rica, South Africa and Brazil for major surgery—taking care of their cardiac, orthopedic, neurological and plastic surgery needs at a fraction of what they'd pay in the United States.

But what about the quality of work? Do you get what you pay for?

I was somewhat surprised to learn that all of these countries are home to experienced medical specialists with the latest technologies and some of the facilities in these areas look more like the Ritz Carlton than a surgical ward.

But before you jump on the medical tourism bandwagon, you'll need to consider the following:

Where you receive medical treatment. When it comes to traveling abroad for treatment, you're on you're own. This means doing a lot of research to make sure you'll be in good hands.

Your recuperation time. Major surgeries mean major recuperation time. You'll need to stay abroad to complete your follow-up care.

Travel time. While driving across the border to have a cavity filled may not wreak havoc on your body, a 12-hour plane ride might if you've just had surgery.

Your insurance. Your insurance isn't likely to cover any of your medical expenses in another country, especially when it comes to elective surgery and dental work. They may not cover your expenses if you have complications after returning to the states, either.

When it comes to receiving medical treatment in other countries, one thing is clear: you need to do your homework. Weighing the risks may offset the money-saving benefits for some Americans, but as for my grandfather, I think he'll be seeing more of Algodones in the future.

Posted by Megan Mahan at 10:23 AM | Permalink | Comments (5)
 

Because we're all mildly interested in the soaring gas prices, I thought I'd throw in this link from GasBuddy.com, which shows gas prices across the country by county. Looks like my old neighborhood in Iowa is currently paying $2.74 in Black Hawk County, down just $.04 from what I'm paying here in Denver.

Good times, eh?

Thanks to AutoBlog.com for the link.

Posted by Megan Mahan at 02:19 PM | Permalink
 

I should preface this post by telling you that I'm a bit of a hypochondriac. I haven't had this confirmed by a psychiatrist or anything, but germs and maladies sincerely freak me out. So as you can well imagine, the prospect of the bird flu hitting the U.S can easily turn me into a ball of stress if I think about it too long.

It must have other people freaked out too, because I've seen an increase in blog posts and articles about the prospect of avian flu insurance. And now, a small Canadian insurance company plans to offer the coverage as soon as this summer.

The Toronto Globe and Mail reports that Mint Canadian Specialty Underwriters will sell bird flu insurance policies to businesses to help companies "cope with an outbreak of any infectious disease". The insurer also sells similar policies for other pandemics, including the mumps (which as recently made a comeback in the Midwest.)

The policy would allow businesses to collect a daily allowance to cover rent, payroll or any other business expense. The company plans to start offering the coverage in June.

Now, hypochondria and all, I'm a little skeptical of this and other types of avian flu insurance in North America.

Here's why.

While I'm all for preventative measures, bird flu insurance seems to be jumping the gun a little bit. Insurance companies in China and Vietnam (to name a couple) are offering various types of bird flu coverage, which makes sense to me as they've had enough outbreaks to warrant coverage.

But offering bird flu insurance in North America before we've even been hit seems to affirm the fact that yes, it's coming, and we should all be terrified. And living in fear, frankly, isn't living. I'm also not sure I like the idea of insurance companies profiting off of that fear—especially if the pandemic never reaches us here in the states.

I have similar unfavorable thoughts about ABC's upcoming made-for-TV movie Fatal Contact: Bird Flu in America, but maybe I'm being hypercritical.

What do you think? Would you purchase bird flu insurance if your insurance agent could sell it to you? Or do you think this coverage precipitates a fearful environment in the US? I'm interested to hear your comments.

[Thanks to the Insurance Coverage Law Blog (again) for the link.]

Posted by Megan Mahan at 12:23 PM | Permalink
 

Unfortunate news out of Georgia today: two insurance agents in Gainesville, Ga. have been charged with fraud after they kept roughly $56,000 from clients rather than turning the premium dollars over to their contracted insurance companies.

One of the agents, who kept approximately $20,000 in premium dollars, was also allegedly selling insurance policies without a valid insurance license.

The story, courtesy of the Insurance Journal, points to one of the most avoidable forms of insurance fraud. And, lucky for us consumers, there are plenty of resources available to help us avoid being scammed by shady agents.

Your state Department of Insurance (DOI) is a great resource that tends to be overlooked by consumers. The DOI keeps track of insurance companies and agents in your state, particularly when it comes to correct licensure. You can call the DOI or visit them online to make sure your agent is licensed to sell insurance policies.

Other consumer resources include insurance rating companies like AM Best and Weiss Ratings, which allow you go online and check the customer service rating and financial solidity of most insurers. The customer service rating will reflect things such as consumer complaints and larger legal issues like fraud—which may dissuade you from buying a policy from the insurer.

Remember, both of these resources are available online, so be sure to take advantage of these easy-to-use sites. Making sure you're dealing with a reputable insurance company and licensed agent may seem like a hassle but it can save you heartache and financial stress down the line.

[Additional resources]:

• State DOI's listed by phone number and website


• The National Insurance Crime Bureau (NICB)


• The Insurance Information Institute

Posted by Megan Mahan at 02:02 PM | Permalink
 

If you're one of those people who just can't drive without your cell phone glued to your ear, your makeup in hand, or a sandwich in your mouth, now there's even more reason to consider avoiding those dangerous behaviors.

A new study by the National Highway Traffic Safety Administration (NHTSA) and the Virginia Tech Transportation Institute has revealed some surprising statistics that lend credence to what we already know about these distracting behaviors—they're even more dangerous than we originally thought.

According to an article in CNN.com today , "Almost 80 percent of crashes and 65 percent of near-crashes happen within three seconds of some form of driver distraction."

Among the study's specific findings:

• Reaching for a moving object multiplies the risk of a crash or near-crash by nine times.


• Dialing a handheld device triples the risk of accident (cell phones are the most common distraction).


• Drowsy drivers are four times more likely to have a crash or near-crash as drivers who are more alert.


• Drivers between 18 and 20 are four times as likely to have attention-related crashes and near-crashes as those over 35.


• "Rubbernecking" near a crash doubles a driver's chances of having an accident.

Next time you're tempted to reach for your cell phone or discipline your kids while driving, you might want to think twice. Pulling over or waiting til you get where you're going could save your life—and keep everyone on the road safer.

Posted by Penny Hagerman at 11:56 AM | Permalink
 

If you're like me, you go through a lot of gas just driving to work and back every day. But did you know that the number of miles you drive not only affects your gas consumption—it also affects what your auto insurance costs?

We're all looking for alternatives to spending big bucks at the gas pumps these days. But short of buying a hybrid vehicle or driving at a snail's pace, the best way to lower your insurance rates is to reduce the number of miles you drive by taking a city bus, subway or other transit system to work daily, or even carpooling with coworkers.

Says who?

The Insurance Information Institute, a leading consumer insurance source. On its Web site, the I.I.I. says:

"Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work."

WCCO-TV, a Minneapolis-St. Paul news station, agrees. In its story today by reporter Terri Gruca, one consumer that reporter interviewed said he saves about 15 percent off his yearly auto insurance premium by not driving to work.

Overall, experts agree that driving fewer miles can translate into savings of 10 percent or more. That may not sound like much, but it sure adds up when you consider what we're paying for gas!

If you put a lot of miles on your car, I'd suggest checking out alternative forms of transportation. You may spend a little time doing it, but the results could definitely be worthwhile.

Posted by Penny Hagerman at 04:32 PM | Permalink
 

As some of you may have seen on the news, last week a series of tornadoes ripped through town of my college alma mater, Iowa City, Iowa. The University of Iowa bore the brunt of the storms and is now heavily engaged in clean up and repair.

Among the many community resources, the university's web site has some great information about salvaging your storm-damaged items. We're talking anything from artwork, photographs, books, clothing...it's all great information. Did you know you can save wet books by placing paper towels between the pages and sticking the book in the freezer? Amazing.

Take a look and stick a copy of this page in with your homeowner's insurance policy and home inventory for safe keeping.

Posted by Megan Mahan at 05:04 PM | Permalink
 

With summer fast approaching, I thought it would be a good time to revisit some tips for keeping your home burglary-free while you're enjoying some much needed time away.

According to the Insurance Information Institute (I.I.I.), the best way to keep burglars away from your home is to make it appear like you are in fact home.

In addition to putting timers on your internal and external house lights, you can:

• Have a trusted friend or neighbor pick up your mail and newspaper while you're gone. If you'll be gone for a long period of time, call the post office or go online to have them hold your mail until you return.


• Keep second-story blinds and drapes open.


• Arrange for someone to mow your lawn and keep the bushes trimmed while you're away.


• Have a neighbor park a car in your driveway or in front of your house.

While creating the illusion that you're home will help keep burglars and vandals away, you should also take extra precautions to keep intruders from entering your home.

You can foil burglars by:

• Making sure all windows and doors in your home are locked.


• Removing valuables from first-floor living rooms, as they may attract burglars who are surveying your home from outside.


• Keeping shrubs and bushes trimmed, eliminating any potential hiding spots.


• Installing motion lights in front of your house and in back.


• Installing electronic burglar alarms to alert authorities of a break-in while you're gone.

Of course, you'll want to review your home insurance policy to make sure it covers damage and loss to your valuables in the event of a burglary. If you have questions about what your policy covers, make sure you call your agent before you leave for your relaxing vacation—you really won't want any unpleasant surprises when you get home. And while you shouldn't be overly paranoid about leaving your home in the summer, some simple preparation can really go a long way.

Posted by Megan Mahan at 01:28 PM | Permalink
 

I filled up my VW yesterday for $2.69 a gallon. Then I sat in the front seat and cried.

I realize I prepared myself for the gas hike but it's making me miserable just like everyone else. So in addition to the auto insurance saving tips (cheaper insurance will help you absorb the cost of gas) I posted for you all last week, I thought I'd post some tips to stretch your gas tank and keep that forty (or fifty) dollar fill-up at bay.

Here's how:

Avoid idling [like the plague]. Experts agree that after 30 seconds of idling, it's actually cheaper to turn off the car and restart it when you're ready to drive again. I'm not suggesting you set an egg timer for 30 seconds at a stop light, but you get the point.

Retire the lead foot. Edmund's reported that accelerating and braking more slowly can increase your miles per gallon by over 35 percent in an SUV and over 27 miles in a two-door car.

Avoid carrying your life in your car. Let me tell you, I currently have most of my life in my car (I'm getting ready to move) and I've seen a major difference in my gas mileage. So you know, if you're carrying around a vintage collection of bowling balls in your trunk, you might want to find them a home to improve your fuel economy.

Don't be Mr. or Ms. Lane Changer. Studies have shown that changing lanes doesn't get you to your destination any faster. So pick a lane, set the cruise control and enjoy your drive. Traffic driving you crazy? Music helps. I've been listening to some great French jazz on my way to work lately...email me if you need some recommendations.

Keep these tips in mind as commuting to and from work or school and doing your usual running around town—together, we'll make it through this tough time.

Posted by Megan Mahan at 08:55 AM | Permalink
 

If you live in North Carolina, you might want to listen up. In case you haven't already heard it, I've got some great news from a local Charlotte news station you'll most likely want to hear.

No, the state didn't lower your income tax rates (wouldn't that be nice about this time of year?). But it's doing the next best thing—lowering your car insurance rates.

According to the Associated Press, as picked up by Charlotte News 14, Insurance Commissioner Jim Long announced on Tuesday that beginning November 15, North Carolinians will experience a 2.9 percent drop in their auto insurance rates.

What precipitated the sudden change?

Every year in February, the North Carolina Rate Bureau, which represents the 170 companies selling auto insurance in the state, proposes auto insurance rates for that particular year. The state department of insurance reviews the rates requested and negotiates a fair price on behalf of consumers.

This year, instead of granting the requested 7.4 percent rate increase, state insurance representatives instituted a 2.9 percent decrease.

But wait...this isn't the only decrease in auto insurance the state will institute this year. In May, an initial 2.5 percent decrease goes into effect, putting even more money back in the pockets of N.C. residents.

Apparently, the cost of auto insurance is on its way down in North Carolina. If you live and drive there, I recommend you don't ask why. Just whisper a "thanks"—and pocket the surplus!

Get the whole scoop from the N.C. Department of Insurance here.

Posted by Penny Hagerman at 04:30 PM | Permalink
 

Gas prices have jumped even higher since last month's post about the price hike...but I doubt this is news to you.

In light of the pressure at the pump, MSN Money has highlighted some money saving tips with their article, 10 Ways to Find Cheap Gas. And, while this article has some great tips for consumers, it does leave out one major money-saving muscle: finding cheaper car insurance.

For many, finding affordable auto insurance has been the secret weapon to saving at the pump. Why? By saving on car insurance, savvy consumers are enjoying less financial stress when it comes to elevated gas and oil prices. And surprisingly, saving on car insurance is pretty easy.

Here's how:

Shop around. I know it sounds like a pain, but with the advent of the Internet, you no longer have to flip through the phone book to compare multiple quotes—services like InsureMe do it for you. Plus, CNN Money recently reported that insurance rates varied up to $500 between insurers every six months!

Ask about discounts. The Insurance Information Institute (I.I.I.) reports that you could save up to $1,200 per year with discounts alone. Ask your agent about discounts for multiple cars, auto-home combo, low annual mileage and added safety features or drivers over 50.

Increase your deductible. Increasing the deductible on collision and comprehensive coverage can drastically lower your overall premium. Just be sure you select a deductible you can afford—there's really no point in putting yourself in serious debt if you have an accident.

Be diligent about bills. More and more auto insurance companies are using credit to help determine insurance premiums, so make sure to pay bills on time and keep low balances on revolving credit.

Review your policy. Reviewing your policy every six or twelve months will help ensure that you're getting the best deal. Experts say staying with an insurer out of sheer convenience is one of the most costly mistakes consumers make.

My auto insurance policy is up for renewal next month, and you better believe that I'll be using these tips to find the best deal on my coverage—between gas prices and my addiction to shoes, I could use the extra cash.

Have questions? Feel free to post your thoughts and questions via comments. Or, if you're feeling bashful, email me at mmahan@insureme.com.

Posted by Megan Mahan at 12:40 PM | Permalink
 

The Insurance Journal had an interesting article today regarding a new fatigue tracking device for truckers to let them know when it's time to pull over and take a snooze.

The device was designed by Richard Grace from the Carnegie Mellon University; according to IJ, it's shaped a bit like a web cam and sits on the trucker's dashboard. Powered by the trucker's cigarette lighter, it uses infrared technology to measure blinking. Yes, blinking.

The device measures how long the driver blinks and keeps his or her eyes shut—the first signal of the onset of fatigue. As the trucker's blinking increases, the tracking device beeps loudly, and keeps beeping for every second that the trucker's eyes are closed, signaling that it's time to pull over for a cat nap.

This isn't such a bad idea if you ask me. Although it reminds me of a similar device that my grandfather used to have, only instead of sitting on the dash, it wrapped around your ear and beeped unbelievably loud if you dropped your head to your chest. It was so disturbing, I imagine that device led to more heart attacks than eliminated car crashes. Looks like Grace's device is a step up. :)

What do you think of these devices? Should they be made mandatory? Take a look at the Insurance Journal article and let me know what you think.

Posted by Megan Mahan at 04:43 PM | Permalink
 

The Chicago Tribune had a great article on Sunday on the topic of college grads and health insurance, which is fitting since graduation season fast approaching.

The realities are many for you college graduates entering the "real world", including finding your own health insurance. That's because the majority of insurance companies won't cover dependents once they turn 23—meaning new grads often have to fend for themselves.

Don't worry, it's not as scary as it seems. Here are a couple tips to make things easy (and affordable):

• Shop around.
In most states, health insurance companies can determine their own rates and coverages—meaning similar policies can be sold for very different prices. Be sure to compare multiple quotes from an online quoting service like InsureMe to find the best deal.
• Look into a temporary policy.
If you know you'll be starting a job with benefits in the months to come, look into temporary policies, which offer high-deductible, short-term coverage. Check with your college or university benefits office as most have alumni programs to help recent grads.
• Check out other options.
If you think you'll need long-term insurance (in case your new job doesn't come with health benefits), you'll want to look into individual health insurance, as well as a health savings account (HSA). According to the Tribune, as long as your deductible is $1,050+, you can make tax-deductible contributions to your HSA and the earnings grow tax-deferred. Research your options and see what kind of plan is right for you.
• Know what's covered—and what's not.
I know, you thought reading was optional after getting the degree. Sorry to be the bearer of bad news, but you need to know what's covered in your health insurance policy so you don't have any [unpleasant] surprises down the line. And make sure the policy covers major medical expenses. If it doesn't, you don't want it.

The bottom line: Don't forgo health insurance. Studies have shown that medical expenses are the leading cause for personal bankruptcy...talk about a rough way to start your new "adult" life.

When I finished school I was booted off my parents' health insurance and had to buy a temporary policy. It was the best solution for me, but you'll need to find what works best for you and your health needs. So shop around and take advantage of resources like the university benefits office to find the coverage you need at a price you can afford.

Oh, yeah. And welcome to the real world. Better cut your hair and get a job like the rest of us. :)

Posted by Megan Mahan at 01:32 PM | Permalink
 

I wish I could tell you I made this up in the dark, satirical corners of my brain, but this is a true story.

This week in New York city, the dog fashion show "Dressed to Kilt" was a great success, reports Yahoo! News, which spawned this photo of a small dog in a kilt and what looks to be a cashmere sweater. Unfortunately, Yahoo! didn't include photos of the pooch dressed in a white Marilyn Monroe-inspired frock.

According to recent estimates by the American Pet Products Manufacturers Association, Americans spent almost $36 billion dollars on their pets in 2005. Oy vey.

On the upside, the show raised money for an animal rescue center, which I'll praise to no end because I'm a sucker for animals. I guess I just prefer them without the couture. :)

Have a great weekend! We'll be back with more insurance news and tips on Monday.

Posted by Megan Mahan at 03:26 PM | Permalink
 

Big news from the State of Massachusetts this week:

The Massachusetts Legislature approved a new bill that would require all Mass. residents to buy some form of health insurance or face legal penalties—enforcing medical coverage similarly to auto coverage.

According to a recent Washington Post article (shown here, courtesy of the San Francisco Gate), the proposal would require all Mass. residents to purchase a health plan by July 1 of 2007 or face a monetary fine. Governor Mitt Romney said the bill was fashioned after the state's auto insurance policy and was aimed at covering uninsured residents, as well as using public funds to pay for physician and hospital visits.

"We insist that everyone that drives a car has insurance," Romney stated, "and cars are a lot less expensive than people."

How are people going to buy a health insurance policy if they can't afford to pay for it? I had the same question myself.

According to the Washington Post article, residents will have an expanded list of health insurance options to choose from, which will include new and inexpensive policies—ranging from $250 per month to nearly free—all subsidized by private insurers.

Buying a health insurance policy under the new system would go something like this:

1. Uninsured residents earning less than the federal poverty level would be eligible to purchase a state-subsidized plan, with no premium and small co-pays for physician and ER visits.


2. Residents earning between that and three times the federal poverty level would be eligible to buy a subsidized plan with premiums set according to their ability to pay. (No maximum premium has been set yet, although legislators don't expect it to top $250.)


3. All residents will have to provide details about their health insurance policy on their 2008 state tax returns; those who don't report their health care plan would lose their state tax exemption (worth about $150) and may face additional penalties one and a half times the cost of the cheapest policy they could have purchased.

As easy as it sounds, the Washington Post reports that there are still some kinks to work out, which I think is to be expected with an entirely new health coverage system. I'll be curious to see how this plan works out for Massachusetts residents and if it will catch on in other states. While other states have taken great strides in making health coverage available for nearly all residents (namely Illinois, Hawaii and Maine), the State of Massachusetts is the first state to make health coverage a requirement.

Does this sound like a worthwhile venture? Don't forget to post your opinions via comments and tell us whether you think Massachusetts-esque health coverage is the best idea ever—or a complete waste of time.

We'll post updates here as they come!

Posted by Megan Mahan at 03:46 PM | Permalink
 

As some of you may have noticed, GEICO's been taking some heat as of late for their underwriting guidelines—specifically the guidelines that permit the company to charge higher insurance rates for drivers with lower education and income levels. While GEICO maintains they have statistical evidence that drivers with lower incomes and education levels file more insurance claims, many consumers are claiming discrimination.

Consumers may have a point.

As I noted over on the InsureMe Agent Blog, I came across a New Jersey newspaper article last week which found that a 30-year old single, male lawyer would pay about $1,690 per year for auto insurance, while a 30-year old single, male janitor (with the same driving record) with a high school diploma would pay over $2,800 per year.

Now, a nationwide class action lawsuit has been filed in Minneapolis, Minn. against GEICO, alleging that the company discriminates against African Americans.

According to the Minneapolis-St. Paul Business Journal, the complaint alleges that instead of correlating with risk, factors like education, income and occupation correlate with race—citing a recent U.S. Census report that said about 31 percent of Caucasians have a bachelor's degree or higher, while only 18 percent of African Americans have the same education.

Because I've left my opinion on the Agent Blog, I won't repeat it here. But if you want to see the feedback I received from someone in the insurance industry (more or less defending GEICO's underwriting), head on over and take a look. I will say that advocates on both sides of the issue have some very valid points; it will be interesting to learn the outcome of this new lawsuit...of course we'll post any updates in the suit here at the InsureMe Insurance Blog.

Posted by Megan Mahan at 03:55 PM | Permalink
 

According to the Insurance Journal, a renowned Colorado State University professor and meteorologist has weighed in on the 2006 hurricane season.

William M. Gray has predicted that 17 storms will make landfall during the 2006 hurricane season. Gray also predicted that a category three, four or five storm would hit the U.S. seaboard in '06.

The findings underscore the importance of home insurance, not just along the coast but in the recently tornado-ravaged Midwest as well. Remember that weather-related perils are not always as dramatic as what we witnessed in 2005 but can still cause massive damage to your property—and your wallet.

Save yourself the heartache of financial loss and review your homeowner's insurance policy this spring.

You should be on the lookout for:

• new purchases or additions made to your home


• valuables that you might have gotten rid of or sold (like Aunt Mae's antique China, for instance)


• valuables like jewelry or art that aren't covered under your basic policy

Taking an hour of your busy day to update your home insurance isn't appealing, I realize. But the "it won't happen to me" paradigm is an unfortunate happenstance amongst homeowners who've lost everything.

So take a look around your house and jot down anything new or different about your possessions and call your agent to let he or she know you need to make some adjustments to your policy. Then sit down and reward yourself with a guilty pleasure—a glossy magazine, a reality show, pick your poison.

Mine happens to be American Idol (but only on Tuesdays). And don't let my boyfriend tell you his is anything different. He's secretly rooting for Ace...but that stays between you and I.

[bonus link]: the Insurance Information Institute (I.I.I.) has some great tips for taking inventory of your home to maximize your protection.

Posted by Megan Mahan at 02:59 PM | Permalink
 

Planning for the future seems to be the last thing on many women's minds, a recent Insurance NewsNet story surprisingly revealed recently.

According to an online survey conducted by Women and Company, a Citigroup membership program providing financial education and resources for women, only 42 percent of the women surveyed periodically review their savings, investments, retirement plans or insurance policies.

Why? Because they're just too busy.

"Between family and career, women are juggling so many priorities that managing finances often falls to the bottom of the list," says Lisa Caputo, President and CEO of Women and Company.

Why is financial planning so important for women? you might ask.

Check out these startling facts from Caputo's company:

• Women live longer than men, so they run the risk of outliving their retirement savings.


• Approximately half of all women 65 and over will end up needing some type of long-term care.


• Women usually have much smaller pensions, due to taking time off to raise and care for children and/or elderly parents.


• Women often have smaller retirement accounts because they change jobs much more frequently than men.

The story in Insurance NewsNet referenced above offers several financial planning suggestions for women. So whether you're a woman looking to secure your own financial future or you're concerned about women you know, take a look at these suggestions. The time may come when you'll be glad you did! :)

Get the story in its entirety here.

Posted by Penny Hagerman at 04:05 PM | Permalink | Comments (2)
 

Think your flood insurance coverage is a little wimpy? You might be right—especially when compared to the new Personal Flood Insurance that's been rolled out by the Chubb Group of Insurance Companies.

The new Chubb policy can provide up to $15 million in property coverage—a stark contrast to the National Flood Insurance Program's (NFIP) flood coverage, which offers a maximum of $250,000 for homes and $100,000 for contents. Chubb Personal Flood Insurance also pays the replacement costs to repair or rebuild your home and replace its contents, up to the limits you select. The NFIP typically settles claims on a cash value basis, which means that the NFIP considers the depreciation in value of your house and contents when they pay out your flood insurance claim.

The coverage itself is also far more extensive under the new Chubb policy, including:

• surface water run-off from a paved surface into the home


• overflow or backup from a sewer outside the home


• flood water entering the home from basement windows

Quite simply, because the Chubb Group has defined "flood" more broadly, homeowners are better protected from numerous water-related perils and the costs to repair or replace their property.

But what if you don't live in a designated flood zone? Do you still need flood insurance?

The answer here is an unequivocal yes, unless, say, you live in the middle of the Sahara. And even then, you're still at some risk for flood damage.

According to the Federal Emergency Management Agency (FEMA), flooding causes more than $2 billion in property damage in the U.S. each year. The common misconception about the necessity of flood insurance is strongly demonstrated by a recent Chubb Group survey, which found that almost 40 percent of Americans believe only homeowners near bodies of water need flood insurance. Au contraire, says Chubb & Son VP, Peter Spicer:

After last year's record-breaking hurricane season, many [homeowners] associate flooding with rooftop rescues and widespread destruction. The reality for the many Americans who experience flooding is much less dramatic, but it's still potentially very costly and disruptive to their lives.

The bottom line is that every home is at some risk for flood, whether it's from an overflowing body of water or a plumbing problem. And with more options for flood insurance, finding an affordable flood insurance policy just got easier.

[HELPFUL LINKS]:
The Insurance Information Institute
FloodSmart
FEMA/NFIP

Posted by Megan Mahan at 09:46 AM | Permalink