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.
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