by L.A.S.
I apologize for dumping so much in your laps all at once. I have been trying to catch up a bit on my backlog of stories I wanted to pass along to you -- and this has led to posting SEVEN articles all in one day on this blog. Sorry about that. But you at least have the luxury of clipping or bookmarking this site so you can come back and mull over all these tidbits at your convenience.
Have a wonderful -- and safe -- Fourth of July weekend!
Friday, July 3, 2009
Texas Proposes Regulation of Annuity Schemes Aimed at Seniors
by L.A.S.
Texas bill HB 961 and SB 2650 would regulate maturity dates on all annuities sold to seniors. No longer can insurers set the maturity date as high as 115. Such unreasonable maturity dates force beneficiaries to pay high surrender charges in order to settle an estate.
The bill would also allow the Texas Department of Insurance to investigate any pattern of conduct by carriers that may violate this regulation, and empower the agency to issue 'cease and desist' orders.
Texas bill HB 961 and SB 2650 would regulate maturity dates on all annuities sold to seniors. No longer can insurers set the maturity date as high as 115. Such unreasonable maturity dates force beneficiaries to pay high surrender charges in order to settle an estate.
The bill would also allow the Texas Department of Insurance to investigate any pattern of conduct by carriers that may violate this regulation, and empower the agency to issue 'cease and desist' orders.
Florida Bill Regulating Annuities Dies in Committee
by L.A.S.
A proposed bill that would require annuities sold to seniors to provide a 60-day “free-look” period died in committee. The bill was labeled SB 724 with the companion House bill labeled HB 141.
Even though the billed died in this session of the state congress, it could be resurrected in the next legislative session.
Provisions of the bill include not only the above clause, but also: would allow return premiums on said annuity sale for 60 days after purchase; no surrender charges after the fifth year of an annuity contract; bars family members of an insurance agent from being beneficiaries of an insurance policy.
The bill also would tighten standards of conduct for insurance agents by: expanding grounds for suspension or revocation of a license; in cases of “twisting” or “churning” of policies belonging to clients age 65 or more, such practices would become third degree felonies.
A proposed bill that would require annuities sold to seniors to provide a 60-day “free-look” period died in committee. The bill was labeled SB 724 with the companion House bill labeled HB 141.
Even though the billed died in this session of the state congress, it could be resurrected in the next legislative session.
Provisions of the bill include not only the above clause, but also: would allow return premiums on said annuity sale for 60 days after purchase; no surrender charges after the fifth year of an annuity contract; bars family members of an insurance agent from being beneficiaries of an insurance policy.
The bill also would tighten standards of conduct for insurance agents by: expanding grounds for suspension or revocation of a license; in cases of “twisting” or “churning” of policies belonging to clients age 65 or more, such practices would become third degree felonies.
Summer is the Time for Disabling Injuries
by L.A.S.
More disabling injuries occur during the summer than any other time of the year, according to a study by The Hartford insurance company's research department.
Accident claims were lowest, in general, in the fall of the year. They climb slightly in the winter quarter and begin to soar in the spring. Summer is by far the busiest period for accident claims, and the most common type of injury was the fracture for both men and women.
The most common injuries for men were: open wounds, internal injuries, sprained joints (shoulder, leg, knee, arm), and fractures (skull, neck, back). The most common injuries for women were: Fractures of lower limb, sprained neck or back, and dislocated knees.
Taking a look at different regions of the country provided some puzzling results. One might expect that skiing accidents would be the main cause of accident claims out West, but winter and fall both had very low accident rates compared to a rising slope for spring and summer accident rates. The Northeast had this pattern of accident rates, going from highest to lowest accident rates: summer, winter, spring, fall. I suppose that people drove themselves too hard in summer sports, and fell on the ice in the winter.
But Midwesterners had virtually the same accident rate for winter as for spring. Fall had the fewest accidents, while summer again was significantly higher; in fact, Midwesterners had the highest rate of summer accidents of all the four regions. The South had the fewest accidents in the winter of all regions, but nearly tied with the West in high spring accident rates, and was second-highest in summer accident rates.
But the main question is: how many months could you go without having any income? How soon would you have to make lifestyle changes if you or your spouse lost their income? Almost all respondents said they would have to change their lifestyle if they or their spouses lost income for three to six months. Only 41 percent had short-term disability insurance, and only 36 percent had long-term disability insurance.
A caveat: disability insurances only pay about 60 percent of your pre-disability income, so plan accordingly. Also, that 60 percent is based on your BASE salary, not including whatever overtime or bonuses you have been earning. Have a reserve fund for emergencies, and/or a source of income that keeps coming in regardless of whether you can get out the door or not.
More disabling injuries occur during the summer than any other time of the year, according to a study by The Hartford insurance company's research department.
Accident claims were lowest, in general, in the fall of the year. They climb slightly in the winter quarter and begin to soar in the spring. Summer is by far the busiest period for accident claims, and the most common type of injury was the fracture for both men and women.
The most common injuries for men were: open wounds, internal injuries, sprained joints (shoulder, leg, knee, arm), and fractures (skull, neck, back). The most common injuries for women were: Fractures of lower limb, sprained neck or back, and dislocated knees.
Taking a look at different regions of the country provided some puzzling results. One might expect that skiing accidents would be the main cause of accident claims out West, but winter and fall both had very low accident rates compared to a rising slope for spring and summer accident rates. The Northeast had this pattern of accident rates, going from highest to lowest accident rates: summer, winter, spring, fall. I suppose that people drove themselves too hard in summer sports, and fell on the ice in the winter.
But Midwesterners had virtually the same accident rate for winter as for spring. Fall had the fewest accidents, while summer again was significantly higher; in fact, Midwesterners had the highest rate of summer accidents of all the four regions. The South had the fewest accidents in the winter of all regions, but nearly tied with the West in high spring accident rates, and was second-highest in summer accident rates.
But the main question is: how many months could you go without having any income? How soon would you have to make lifestyle changes if you or your spouse lost their income? Almost all respondents said they would have to change their lifestyle if they or their spouses lost income for three to six months. Only 41 percent had short-term disability insurance, and only 36 percent had long-term disability insurance.
A caveat: disability insurances only pay about 60 percent of your pre-disability income, so plan accordingly. Also, that 60 percent is based on your BASE salary, not including whatever overtime or bonuses you have been earning. Have a reserve fund for emergencies, and/or a source of income that keeps coming in regardless of whether you can get out the door or not.
Seniors Will Have Fewer Agents Calling and Knocking
by L.A.S.
Revised rules governing marketing to seniors have put a crimp on cold calls by insurance agents. No longer may insurers call or knock on doors of seniors who are not already policyholders with their company. That includes a ban on calling former policyholders and referred prospects.
This will make it harder for people just turning 65 to find and compare different supplemental plans. However, since 64 percent of seniors already go online to compare and research insurances, that avenue will only grow.
Insurers will need to provide senior-friendly web sites that allow visitors to choose their type size and increase contrast. The web site should also give you a way to request more information, such as a request form online to receive a packet of Medicare-supplemental information brochures or booklets.
It makes for a kinder and gentler selling and buying environment.
Revised rules governing marketing to seniors have put a crimp on cold calls by insurance agents. No longer may insurers call or knock on doors of seniors who are not already policyholders with their company. That includes a ban on calling former policyholders and referred prospects.
This will make it harder for people just turning 65 to find and compare different supplemental plans. However, since 64 percent of seniors already go online to compare and research insurances, that avenue will only grow.
Insurers will need to provide senior-friendly web sites that allow visitors to choose their type size and increase contrast. The web site should also give you a way to request more information, such as a request form online to receive a packet of Medicare-supplemental information brochures or booklets.
It makes for a kinder and gentler selling and buying environment.
It Pays to Take ALL Your Meds to Dr. for Review
by L.A.S.
It just goes to show that an annual review of all your medications can save your life and keep you out of the emergency room.
Premera Blue Cross sponsored what they called a “Polypharmacy” program. They encouraged policyholders to put all their medications in a brown bag and take them to their primary physician for review.
What was the result of this review program? Emergency room visits and hospitalizations decreased among those who took part in the program.
Many patients are taking two forms of a same drug under different brand names, and never realize it. With all your medications in one place for review, physicians can spot duplication and other errors that could lead to serious health complications. Do it this month and live better!
It just goes to show that an annual review of all your medications can save your life and keep you out of the emergency room.
Premera Blue Cross sponsored what they called a “Polypharmacy” program. They encouraged policyholders to put all their medications in a brown bag and take them to their primary physician for review.
What was the result of this review program? Emergency room visits and hospitalizations decreased among those who took part in the program.
Many patients are taking two forms of a same drug under different brand names, and never realize it. With all your medications in one place for review, physicians can spot duplication and other errors that could lead to serious health complications. Do it this month and live better!
Class-Action Suit Fines Insurers for Concealing LTC Increases
BY L.A.S.
Three companies were fined for concealing planned rate increases on long-term care policies in the state of Missouri. The companies were: Mutual of Omaha, American Heritage Life, and Wakely & Associates (a third-party administrator).
Under the court settlement of the class-action suit, Mutual of Omaha will have to maintain benefits on current policies with a value of $8.5 million. American Heritage will have to provide benefits to lapsed policies valued at $2.5 million. Wakely has paid a $4 million fine.
Wakely had helped American Heritage with the design, marketing and sale of the long-term care policies.
Those affected included 1670 people in Missouri who bought long-term care insurance policies between 1995 and 2000.
Three companies were fined for concealing planned rate increases on long-term care policies in the state of Missouri. The companies were: Mutual of Omaha, American Heritage Life, and Wakely & Associates (a third-party administrator).
Under the court settlement of the class-action suit, Mutual of Omaha will have to maintain benefits on current policies with a value of $8.5 million. American Heritage will have to provide benefits to lapsed policies valued at $2.5 million. Wakely has paid a $4 million fine.
Wakely had helped American Heritage with the design, marketing and sale of the long-term care policies.
Those affected included 1670 people in Missouri who bought long-term care insurance policies between 1995 and 2000.
Have You Looked into Indexed Universal Life Yet? It Offers Safety and Good Returns
by L.A.S.
Many Boomers, discouraged by their investment returns after the debacles of the 1990s and 2008, have checked into the indexed universal life insurance.
Boomers, stung by hard losses in previous stock market downturns, have found one likely candidate for safe investing. Indexed universal life insurance offers the investor the ability to lock in gains during the good years, and protection of your account during the bad years.
Indexed universal life offers a zero percent floor, meaning you will not lose your principal even if the market goes bad. This provides preservation of capital. The only drawback is the the investor has fewer investment options than with other forms of variable universal life, but for many of us, simpler is better. Owners of these policies can sleep better at night, too.
More than 50 percent of the sales of this product are to Boomers. They trade off not receiving dividends for their participation in the plan.
Other types of investment vehicles that have seen increased sales are fixed annuities and multiyear-guarantee (aka CD-type annuities).
Insurance carriers have guidelines regarding the suitability of annuities for a client. The parameters include: age 40 or more, has considered alternative investments, is appropriate for the client, has funds to sit in this account for an extended period, has sufficient liquidity so that he or she will not have to dip into their annuity for the foreseeable future, and maintains at least 20 percent of their net worth for immediate needs and emergency funds.
Many Boomers, discouraged by their investment returns after the debacles of the 1990s and 2008, have checked into the indexed universal life insurance.
Boomers, stung by hard losses in previous stock market downturns, have found one likely candidate for safe investing. Indexed universal life insurance offers the investor the ability to lock in gains during the good years, and protection of your account during the bad years.
Indexed universal life offers a zero percent floor, meaning you will not lose your principal even if the market goes bad. This provides preservation of capital. The only drawback is the the investor has fewer investment options than with other forms of variable universal life, but for many of us, simpler is better. Owners of these policies can sleep better at night, too.
More than 50 percent of the sales of this product are to Boomers. They trade off not receiving dividends for their participation in the plan.
Other types of investment vehicles that have seen increased sales are fixed annuities and multiyear-guarantee (aka CD-type annuities).
Insurance carriers have guidelines regarding the suitability of annuities for a client. The parameters include: age 40 or more, has considered alternative investments, is appropriate for the client, has funds to sit in this account for an extended period, has sufficient liquidity so that he or she will not have to dip into their annuity for the foreseeable future, and maintains at least 20 percent of their net worth for immediate needs and emergency funds.
Tuesday, June 30, 2009
A Must-Read from Mother Jones on Healthcare Proposal
Not as lengthy as some of the more important Mother Jones articles, but nevertheless it was very insightful.
Please click this link to an article titled: Congress's $1.2 Million a Day Drug Habit—and Pharma's Phony "Gift" to Health Care Reform at http://www.motherjones.com/mojo/2009/06/pharmas-phony-gift-seniors
Many seniors on the Medicare Part D plan go on generics as they enter the "donut" phase of the plan -- and never go back onto the brand-name drugs after exiting the donut.
Under this proposed plan seniors may decide they are better off staying with the brand name drug through the whole year. Big Pharma will like that.
Please click this link to an article titled: Congress's $1.2 Million a Day Drug Habit—and Pharma's Phony "Gift" to Health Care Reform at http://www.motherjones.com/mojo/2009/06/pharmas-phony-gift-seniors
Many seniors on the Medicare Part D plan go on generics as they enter the "donut" phase of the plan -- and never go back onto the brand-name drugs after exiting the donut.
Under this proposed plan seniors may decide they are better off staying with the brand name drug through the whole year. Big Pharma will like that.
Sunday, June 28, 2009
Some States Already Refusing National Healthcare
Arizona is one state that has made it clear it wants no part of a national healthcare plan. It has refused other federal programs before, so this is not a sudden policy change.
EXCERPT: Right on the heels of a successful state-by-state nullification of the 2005 Real ID act, the State of Arizona is out in the forefront of a growing resistance to proposed federal health care legislation.
This past Monday, the Arizona State Senate voted 18-11 to concur with the House and approve the Health Care Freedom Act (HCR2014). This will put a proposal on the 2010 ballot which would constitutionally override any law, rule or regulation that requires individuals or employers to participate in any particular health care system.
HCR2014, if approved by voters next year, also would prohibit any fine or penalty on anyone or any company for deciding to purchase health care directly. Doctors and health care providers would remain free to accept those funds and provide those services.
Finally, it would overrule anything that prohibits the sale of private health insurance in Arizona.
Five other states — Indiana, Minnesota, New Mexico, North Dakota and Wyoming — are considering similar initiatives for their 2010 ballots.
You may read the whole article at this forum page: http://usfreestar.newsvine.com/_news/2009/06/26/2972841-arizona-hcr2012-national-health-care-nullification -- We has lots of good discussions on this site so you might want to browse awhile.
EXCERPT: Right on the heels of a successful state-by-state nullification of the 2005 Real ID act, the State of Arizona is out in the forefront of a growing resistance to proposed federal health care legislation.
This past Monday, the Arizona State Senate voted 18-11 to concur with the House and approve the Health Care Freedom Act (HCR2014). This will put a proposal on the 2010 ballot which would constitutionally override any law, rule or regulation that requires individuals or employers to participate in any particular health care system.
HCR2014, if approved by voters next year, also would prohibit any fine or penalty on anyone or any company for deciding to purchase health care directly. Doctors and health care providers would remain free to accept those funds and provide those services.
Finally, it would overrule anything that prohibits the sale of private health insurance in Arizona.
Five other states — Indiana, Minnesota, New Mexico, North Dakota and Wyoming — are considering similar initiatives for their 2010 ballots.
You may read the whole article at this forum page: http://usfreestar.newsvine.com/_news/2009/06/26/2972841-arizona-hcr2012-national-health-care-nullification -- We has lots of good discussions on this site so you might want to browse awhile.
How Would Your Life Be Different if We Had National Healthcare?
A provocative article ran recently in the pages of AlterNet regarding the writer's experience living in Canada for a while. Her five years in Canada were a real eye-opener in how a healthcare system could work, sparing people the economic drain of continual insurance and medical bills.
She wrote:
This was one of the things that struck me hardest when I arrived in Canada five years ago. The swamp-blindness was so dark and deep that it took a while to adjust to a world without alligators. It's almost impossible to describe to folks back home how different life is when health insurance simply doesn't factor at all into how you choose to live your life. There's almost no language for it. Rather than even attempt it, I sometimes just ask my American friends and relatives to open up their imaginations, and answer the question for themselves:
* How would your life be different if you never had to worry about getting, keeping, or affording health care again?
* What other choices might you have made?
* Where else would you be right now?
* How would it change your plans for the future?
You can read the whole article here at http://www.alternet.org/healthwellness/140918/what_did_you_sacrifice_to_afford_health_care_/?page=entire -- AlterNet is a wonderful website with many such interesting and provocative articles. I hope you like it.
She wrote:
This was one of the things that struck me hardest when I arrived in Canada five years ago. The swamp-blindness was so dark and deep that it took a while to adjust to a world without alligators. It's almost impossible to describe to folks back home how different life is when health insurance simply doesn't factor at all into how you choose to live your life. There's almost no language for it. Rather than even attempt it, I sometimes just ask my American friends and relatives to open up their imaginations, and answer the question for themselves:
* How would your life be different if you never had to worry about getting, keeping, or affording health care again?
* What other choices might you have made?
* Where else would you be right now?
* How would it change your plans for the future?
You can read the whole article here at http://www.alternet.org/healthwellness/140918/what_did_you_sacrifice_to_afford_health_care_/?page=entire -- AlterNet is a wonderful website with many such interesting and provocative articles. I hope you like it.
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