Mark Carolin

Most recently I have been bombarded with offers from various credit card issuers for insurance programs that are “free” for the first thirty days, but you have to sign up right then.

Disability Insurance – I have heard both sides on this issue and it may or may not be something you want to consider depending upon who you work for. The disability insurance will pay minimum payments on your credit card if you are ill or unable to work for at least 30 days. (Check your policy offer for details.) If you keep a low balance-to-limit ratio this insurance might not be a bad idea. If however, you are running close to your credit limit, since the insurance only pays the minimum payments, that plus the charge for this insurance coupled with the accrued interest may cause you to go over your credit limit incurring even more costs and causing credit issues – which is what you were trying to avoid in the first place. This type of insurance might be alright if you think layoff or disability is a real threat in your life but on the average, the industry pulls in millions and most consumers never use the insurance. On the other side of the coin, all insurance is a gamble, you bet you need it and the insurance companies bet you don’t.

Life Insurance – If you don’t take any of the other insurance that is offered, you might want to at least consider this one; depending on the balances you carry.  If you should die, the insurance will cover the balance on your bill as long as it’s up to date and not over your credit limit.  Without insurance, your creditors will attach a lien to your estate that will have to be paid before your survivors receive any of their inheritance money.

As always, check with your financial professionals before signing up for any program that impacts your financial future.

The association that sells and manages insurance programs for Kentucky’s 120 counties operates with a “self-serving culture” that has resulted in millions of dollars in questionable spending the past three years, according to a critical report by the state auditor.

State Auditor Crit Luallen today released a special examination of the Kentucky Association of Counties (KACo), which found that as KACo’s revenues increased 75 percent from 2003 through 2008 to more than $5.7 million, the level of discretionary spending by the organization also increased dramatically– on parties, adult entertainment, expensive meals, sporting events, some employee retirement benefits, even condo rentals for executives.

KACo, a public, non-profit association primarily funded by public dollars and governed by county officials, offers lobbying and financing services and sells insurance to member counties, which pay insurance premiums and membership dues.

The majority – more than 90 percent– of KACo’s revenue comes from fees paid by the insurance and financial programs administered by KACo staff. The insurance portion of the organization is regulated and audited by the Kentucky Department of Insurance. County membership dues are not a large source of income for KACo, having averaged only about $130,000 each year since 2003.

The state auditor’s report claims that a culture of overspending flourished as board members, management and staff spent funds on lavish dinners, alcohol, sports and entertainment tickets, staff birthday meals, adult entertainment, and fancy Christmas parties. The exam found nearly $2 million charged on agency credit cards over a three-year period, with $1.4 million having inadequate or no supporting documentation, an unclear business purpose or was excessive in nature.

The lack of board oversight included weak internal controls, minimal conflicts of interest and ethics policies, and no whistleblower policy, the audit report says.

The exam reviews KACo’s finances from July 1, 2006 through June 30, 2009 and makes 40 findings and more than 150 recommendations to improve board oversight and management operations.

“Our examination provides the leadership of KACo the proper tools to continue to strengthen accountability and to fulfill its responsibilities to the counties and the taxpayers,” Luallen said. “I believe the public expects no less. In this current economic downturn, when our counties are struggling, our citizens have no patience for waste and excess from those who hold their trust and handle their tax dollars.”

Luallen’s office announced its plans to audit both KACo and the Kentucky League of Cities (KLC) in July after media reports raised questions about spending at both organizations. Luallen said the KLC audit would be released in the coming weeks.

Luallen said KACo should have found ways to return increases in revenues to its member counties as lower membership dues and insurance premiums or as additional training programs instead of on wasteful spending.

She said the KACo board has taken steps recently as a result of public scrutiny and media reports to begin to achieve greater accountability.  She also said that there were some board members and employees of KACo who resisted excesses evidenced in the exam and who worked effectively, despite the culture that developed.

Luallene said the KACo board has indicated it would move forward with reforms in reponse to her examination.

The audit uncovered $1.4 million in questionable credit card charges that lacked adequate documentation of their business purpose, including:

* KACo paid $219,144 for 77 restaurant charges that each cost more than $1,000. Examples include: an $8,857 meal at Mike Dikta’s Restaurant in Chicago; an $8,161 meal at Z’s Oyster Bar and Steakhouse in Louisville; a $7,237 meal at Sal’s Italian Chophouse in Lexington; and a $7,082 meal at Starker’s Restaurant in Kansas City.

* In 2007 and 2008, the organization spent $48,426 for two board Christmas parties for management, staff and board members. After brief board meetings that were held during the day, these individuals, along with their guests, were driven to Spindletop Hall in Lexington by a tour bus to attend the Christmas parties each year.

* KACo spent $43,000 on alcohol, although auditors believe the amount is significantly higher based on information provided through staff interviews.

* The organization also spent $28,700 in entertainment ticket purchases, including university football and basketball game tickets, and Kentucky Derby tickets, along with other entertainment venues.

* Auditors found a $1,814 credit card charge for 13 tickets to the Radio City Christmas Spectacular in 2008. The tickets were for entertainment for five board members, along with spouses and companions, during a bond closing in New York City.

* The organization spent $11,593 on staff birthday lunches, $7,262 on staff Christmas gifts, $3,053 on other board and staff gifts, $8,119 on air travel insurance, $2,385 on conference meals and $890 on adult entertainment.

* Adult entertainment charges included escort services on two occasions and four charges at two different strip clubs. These were charged to KACo credit cards of the former executive director and former board president.

Besides the $1.4 million in undocumented credit card expenses, auditors also found other instances of questionable expenditures by KACo.

According to the exam, KACo offers two retirement benefits for its employees: one in the County Employee Retirement System (CERS) and a 6-percent match in the Kentucky Public Employee Deferred Compensation Authority. Over a three-year period, KACo paid $622,355 for the employee 6-percent retirement match.

Additionally, auditors found that KACo spent $334,300 to pay board members for meetings, $278,154 for legal defense for convicted officials, $247,944 for a sports advertising contract, $83,000 for donations and sponsorships, and $12,600 for use of two condominiums.

Auditors found KACo rented two condominiums: One used by the organization’s product development manager in Frankfort at a cost of $11,000 over a 10-month period and another Frankfort condominium for its former executive director for $1,600 for a two-month period.

The list of expenditures can be viewed at www.auditor.ky.gov.

KACo was founded in 1974 as a 501(c)(3) non-profit  corporation by a group of county officials. Its membership includes all 120 county governments of Kentucky.  It was initially formed to offer educational programs, cooperative undertakings  and issue advocacy but over the years had expanded to provide various products and services including insurance. The KACo insurance units include:

* Commonwealth Insurance Company, Inc (CIC), a for-profit corporation that provides employee dishonesty fidelity bond coverage, business income coverage, and extra expense coverage exclusively to the  members of KALF.

* KACo Insurance Agency, Inc. (KIA), a wholly owned subsidiary of  KACo and a for-profit corporation.  KIA was originally  formed to market the KACo group health plan, but has  expanded in recent years to also market public official  bonds, excess earthquake coverage, and spectators’  liability coverage.

* KACo Worker’s Compensation Fund (KACo WC), an unincorporated association  created by KACo that allows county governments and  other public agencies to pool resources and creates a self-insurance fund for the provision of worker’s compensation  coverage.  In addition, the KACo WC Fund also provides  risk management and loss control training to the counties  and agencies that are members of the fund.

* KACo All Lines Fund (KALF), a group self-insurance pool to  provide liability insurance products, including products  such as auto liability, general liability, property, law enforcement liability, public officials liability,  employment practices, and intentional tort and criminal charges defense. KALF also offers risk management and loss control training.

Many auto insurance companies consider your credit and personal information when determining the amount of premium paid by your insurance. So if you call back on car insurance, keep in mind that many insurers are looking at your credit history to determine your automobile insurance rates. I hope that we will be able to tell why and how.

The reason why some insurance companies use credit information, because I believe that there is a direct correlation between the consumption of credit history behaviors and expected claims that occur in the month of May Accordingly, they believe that people with a performance better credit are less likely to severe insurance losses.

Many insurance companies still use your age, driving, the type of vehicle if you live to determine what you should pay for your insurance. So, if you do not have a credit history yet, companies that use credit history in the month of May is not the best for you. May they not allow you to qualify for certain discounts, which could lead to an increase in premiums. Companies that use credit scoring will continue to use other factors to determine the premium.

They can also use your age, driving, the type of vehicle if you live to determine what you should pay for your insurance. It ‘just an insurance company, and also look at my credit information without my permission? The answer is yes. The Federal Fair Credit Reporting Act says “reasonable procedures. And ‘the purpose of this title to require that consumer organizations adopt reasonable procedures to meet the needs of commerce for consumer credit, personnel, insurance, and other information in a way that is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevance and proper use of such information in accordance with the provisions of this title.

If you think your credit history is much better to find the insurer, make sure that the insurer has your name, address, social security number, and date of birth. Some insurance companies will be directly to your credit report, in setting tariffs, but most use what is called “credit insurance.” Credit insurance has been developed using statistical techniques and methods to predict the probability that a consumer will have higher losses than expected. These are similar to that used by lenders to predict the reliability of the applicant to repay a loan.

http://www.carinsuranceezine.com/

Homeowners insurance costs in New Hampshire are rising, as they are all over the United States. In fact, while the average cost of homeowners insurance increased by eight percent last year, some homeowners have seen increases as high as 70 percent. So what can you do to find cheap homeowners insurance in New Hampshire?

Look for Discounts

Insurance companies offer many discounts that directly lower the cost of your premium. Common discounts include:

* Multi-policy discounts for insuring both your home and your vehicles with the same company

* Loyalty discounts, when you stay with the same company for a certain number of years

* Non-smoker’s discount is no one in your home smokes

* Safety and security discounts for installing smoke detectors, burglar alarms, deadbolts, fire extinguishers, window locks, and other security devices

Ask your insurance company if there are any additional discounts you might be eligible for and take advantage of them.

Raise Your Deductible

The deductible is the amount you pay toward any claim before the insurance company begins to pay. Raising your deductible can save you 15 to 30 percent on your premium.

Maintain Good Credit

Insurance companies now use your credit history to determine whether to insure you and what rate to offer you. By maintaining good credit, you qualify for a lower rate.

Shop Around

You can potentially save hundreds of dollars on your homeowners insurance by shopping around and comparing prices. But you don’t need to go visiting all your neighborhood insurance agencies.

Instead, you can sit down at your computer and visit an insurance comparison website. At these websites, you just fill out a simple online form with your insurance information to get quotes from various companies.

On the best insurance comparison websites, you can even talk online with insurance professionals. Once you complete your form, you’ll receive homeowners insurance quotes from several A-rated insurance companies. Then all you have to do is choose which company you want to insure your home.

Visit http://www.LowerRateQuotes.com/homeowners-insurance.html or click on the following link to get New Hampshire homeowners insurance quotes from top-rated companies and see how much you can save. You can get more tips and advice in their Articles section.

Almost every time you make major or smaller purchases you apply for some type of credit. No matter if you are buying a house or a car, or you just go and buy some appliances or electronics for your home you’ll use some type of credit. And more or less every time you use a form of loan there are big chances that you’ll be asked to also buy some form of insurance for your credit. Before proceeding with buying any kind of insurance you should know what you’re paying for. Credit insurance is a type of insurance made on a debtor in favor of a lender and it is intended to pay off a loan or the remaining balance if the insured dies or is unable to make any more payments. The insurance for credits comes in various forms; the typical form includes credit life, credit property insurance, credit disability and involuntary unemployment. Usually all these coverages come all together with the same credit insurance. Some of them will have a value for you and some may not have. You can opt for which one of them you want to pay with one small exception: credit disability and life coverage cannot be sold separately.

Credit life coverage is actually a type of life insurance that pays off the loan or the remaining balance in case you die. The payment of the life credit insurance on this type of insurance for the credit always goes to the lender as he is the beneficiary of your policy. The credit disability insurance is the type of insurance that makes your monthly credit payments during a certain fixed period of documented medical disability. While this type of insurance can help you keep a good credit report and history, it will not make the monthly payment forever and will not, for sure, pay off all your balance. In such situations it is best to try to get back on your feet and pay by yourself the loan because, as the time passes, interest and insurance charges continue to add up to your already existing balance and you’ll end up paying more than your original credit.

The other two types of credit insurance are: involuntary unemployment insurance and credit property insurance. The involuntary unemployment insurance is very much similar to the disability insurance: the insurance makes the monthly minimum payments for a certain period of time while you are involuntary unemployed. Like we said before is better to not let this situation go on for a long period of time. The credit property insurance is different than all the other insurances in the way that it cancels the debt you owe for the items purchased if the property purchased is destroyed by certain specified risks like: fire, flood, accident, earthquake, etc.

No matter for which one of the above credit insurance you opt, it is most important to read and know the full details of the coverage. This way you’ll be able to know which one of them best suites your needs and select that particular one or maybe a combination of two or more of them. Also, you should consider your financial status before purchasing insurance for the credit. Or maybe you’re considering making several purchases from different places and each one of them asks for insurance. But this cannot be so cost effective. If you have more accounts and intend to insure all off them maybe you should think of buying a traditional insurance; an insurance agent or broker can be of big help in such a situation. He will help you make the necessary comparisons and finally with choosing the right insurance type for you.

Last but not least you have to make sure you qualify for the credit insurance you’re going to buy. These types of insurances are sold without any screening to anyone that makes a purchase on credit. Often, many people do not qualify for the insurance they are buying but the company that is selling you the insurance will not bother asking you if you think you qualify or not. So, it is you, the borrower and the buyer of the insures, that has to carefully read and understand how the insurance works and be fully aware of any special claim procedures or limitation clauses included into the insurance. It is only your responsibility.

When going through the process of searching for cheap automotive insurance quote, there is an easy process that you can go through online that will assist you in finding the right company for your needs. When looking online for car insurance, there are many ways you can go about getting the quotes you want. As I mentioned above, you can use a comparison website that will allow you to receive different quotes from different companies at the same time and you are only required to enter your details once. If you would prefer not to use this type of service, you can go to each website of the insurance company that you want a quote from and fill out their individual forms to receive your quote. This process allows you to choose all the companies that you receive the quotes from.

Receiving Automobile Insurance Quotes Online

Once you have decided which way you want to receive your direct auto insurance quotes online, there are some things to keep in mind. When going to individual websites to ask for quotes, make sure that you enter the same details about yourself on each form. This will help ensure that you receive accurate quotes on the same amount of coverage from each company. You will need to make sure you are honest about your driving history and credit report, as if you are not, this will come out eventually and cause an increase in the amounts you were quoted. The insurance companies will verify this information. There is no way to get around this.

When you are using the online portion of an general auto insurance company, you always have the option of calling their main number to speak with someone to get all your questions answered. If you have doubts or any type of question, it is important to contact them to clear it up. Some auto insurance companies will offer online chat to an insurance agent. This can be helpful when looking for insurance as you can get your questions answered or get help walking through the detail process of the form. The main page of the site should tell you if they offer online chat and if it is available at that moment in time or not.

Are you in the market for life insurance? Want to know how to save money on your policy? Here are the 7 best ways to save money on your life insurance policy.

1. Shop For Rate Quotes

The best way to get the best deal on anything is to comparison shop, and that’s especially true for life insurance. Premiums can vary by hundreds of dollars from one company to the next, so it pays to invest a little time comparing rates from different companies. The quickest way to compare rates is to visit an insurance comparison website where you can get multiple rate quotes all on one site. (see link below).

2. Get a Term Life Policy

Term life insurance is the way to go if you want the most coverage for the least amount of money. With term life you’re paying for insurance only, not an added investment vehicle as you are with whole life or universal life.

3. Get Healthy

If you’re a smoker, quit. If you’re overweight, get started on a diet. Life insurance rates are based on your age and your health. The healthier you are the lower your premium will be. Living a healthier lifestyle will not only lower your premium, it will make you feel better and will allow you live longer.

4. Get a No Load Policy

No load policies do not have added fees such as agent commissions or marketing fees, which can add hundreds of dollars to your policy. With a no load policy you only pay for the policy.

5. Buy Only What You Need

Most people buy too much or too little life insurance because they haven’t taken the time to figure out what they really need. Take the time to evaluate how much life insurance your beneficiaries will need now, and how much they’ll need in the future.

6. Clean Up Your Credit

Insurance companies reason that if you have bad credit you’re more likely to let your policy lapse and are therefore a higher risk to them. If you have bad credit you’ll pay more for your policy and may even be denied a policy. Get your free credit report from Experioan or Equifax, and if you have bad credit, start repairing it. You’ll not only save money on your policy, you’ll also save your credit rating.

7. Get Your Policy Now

Life insurance is based on two primary factors – your age and your health. The younger you are and the healthier you are, the less you’ll pay for your policy. By purchasing a policy now, instead of waiting until you’re older and have health problems, you’ll get a much better rate on your policy.

Visit http://www.LowerRateQuotes.com/life-insurance.html or click on the following link to get life insurance rate quotes from top-rated companies and see how much you can save. You can get more tips and advice in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.

Some of the different kinds of insurance, amongst others, available to South Africans:

Business or Corporate Insurance

Business insurance is generally a package of insurance options all rolled into a single policy, taking the specific needs of the business owner into account. The primary subtypes of this kind of cover are



Various kinds of professional liability insurance

The business owner’s policy which bundles various forms of cover together to meet his/her specific needs



Construction Insurance

Construction insurance provides cover for the loss of or damage to property during the course of construction.

Credit insurance

Credit insurance will pay all or part of a loan should the policy owner become unemployed, disabled or dies.

Employee Theft insurance

Startling statistics have revealed that as many as 70% of all businesses in South Africa will be affected by employee theft at some stage or another. It is therefore an imperative for all business owners to adequately protect themselves and their property from this unacceptable abuse by employees. This insurance cover compensates the business owner for the loss of money or property caused by theft by an employee. In some cases, any other act of fraud or dishonesty by an employee, is also covered.

Fire insurance

Fire insurance covers the loss of or damage to a building and/or its contents due to fire.

Liability Insurance

Liability insurance is specifically designed to offer precise protection against claims by a third party. Payment is not usually made to the insured but to the person or party who has suffered the loss or damages.

Marine insurance

Marine insurance covers the loss of or damage to ships at sea and their cargo as well as terminals and any other transport or property used to transfer the cargo between the point of origin and the final destination.

Motor Insurance

Motor insurance protects the policy holder against financial loss in the event of an accident or in the case of theft. It offers three different types of cover that effectively covers all bases – property, liability and medical cover



The property cover pays for the damage to or the theft of the policy holder’s vehicle

The liability cover pays for the policy holder’s legal responsibility to others in the case of injury or property damage or both

Medical cover pays for all medical costs relating to the policy holder including rehabilitation and loss of earnings



Property insurance

Property insurance safeguards the physical property of the insured against fire, theft, adverse weather conditions or other disasters. It is a wise idea to opt for all-risks cover that effectively offers blanket protection against all perils, not only the ones itemised in the policy should you choose specific insurance coverage instead.

Travel insurance

All travellers, whether taking a trip locally or abroad, are urged to take out adequate travel insurance. It offers cover for certain losses like medical expenses, travel delays, personal liabilities and the loss of expensive personal belongings.

Maryland’s insurance commissioner of just over two years has announced his resignation to take a position with the U.S. Food and Drug Administration.  Ralph S. Tyler, the state’s top insurance regulator since September 2007, said today (Dec. 16) that he will accept an appointment as chief counsel to the FDA.

Tyler’s resignation is effective Jan. 8, 2010, at which point the governor’s office will appoint his successor.

Shaun Adamec, a spokesman for Gov. Martin O’Malley’s office, told IFAwebnews.com that “there is no timeline” to name Tyler’s successor and that the office will conduct a search and make an announcement at a later date. If, Adamec said, no one is selected by Jan. 8 of next year, the governor will appoint an interim insurance commissioner.

Tyler, 62, told IFAwebnews.com that the new opportunity with the FDA allows him “to return to being a lawyer,” referring to his time prior to joining the Maryland Insurance Administration (MIA) serving as Baltimore City Solicitor and chief legal counsel for the O’Malley administration.

“There have been in the past and there will be certain challenges in the field of public health where the FDA plays an important role,” he said.

Baltimore connection

It was, in fact, his link as a former city solicitor that led to the FDA post, Tyler said.

In June, President Barack Obama appointed Dr. Joshua M. Sharfstein, Baltimore’s health commissioner, as the FDA’s principal deputy commissioner. Tyler said Sharfstein recently asked him whether he would be interested in joining the FDA as chief counsel and the Baltimore resident accepted, ready to report to the FDA’s White Oak, Md., campus early next year.

“I’ve enjoyed tremendously my time as insurance commissioner and am keenly aware of the importance of the work here in protecting consumers,” Tyler said. “We’ve made progress in important areas in the time here and I credit the staff at the MIA for that.”

Tyler said he believes the MIA has strengthened consumer protection activities in solvency, complaints, rate review and other areas, “the job of any insurance commissioner,” he said.

His one regret, however, is leaving prior to facing the challenge of other state regulators in dealing with the impact of pending federal health reform.

“There are a number of issues that will need to be addressed and it will be very important for the states to figure those out in a rational way,” he said. “I would have really enjoyed that.”

Succession plan

Tyler said between now and his departure in January, he will work with the governor’s office to assure a smooth transition to new leadership at the MIA. He deferred comment on who should succeed him to the governor’s office.

Tyler and the MIA recently promoted Karen Stakem Hornig from associate commissioner to deputy commissioner, the same title as Beth Sammis, who was appointed to that role shortly after Tyler came to the agency.

The commissioner recently told IFAwebnews.com that it should be Sammis who would succeed him if he would be unable to fulfill his duties or leaves office, as described in state law.  The governor’s office, however, said “both deputies as well as others could possibly be considered,” according to a deputy press secretary.

Too often I hear insurance companies advertise how proud they are about not using credit as a rating factor in an auto insurance quotes.  I then receive a phone call from a customer asking me if I am going to run their credit and confess to me they just took a hit on their credit score.

The reality is that credit is a good method to measure risk.  Don’t stop reading this if you have less than perfect credit! 

Don’t Forget, this article is meant to help you understand how credit affects your rating, so don’t get upset with me yet!



Why do insurance companies use credit to determine if I am a good driver?  Insurance companies do not determine if you are a good driver based on credit.  Insurance companies determine you are more prone to make a claim if you have lower credit.  There is a correlation between bad credit and financial instability.  Example:  If somebody is financially unstable, they are more likely to not perform preventative maintenance on their vehicle such as new tires or new brakes. 

Now, most people will probably replace their tires and brakes, but if one out of 1000 in the bad credit category has a tire blow out and they severally injure somebody, the insurance company will loose money.

 

 



What is the solution? 



Don’t Fall in the trap of cheap advertisement!  Please don’t fall in the trap of advertisements, “we don’t run your credit.”  With my experience in the insurance world, not running credit usually means the insurance company is selling a limited product, which opens up loop holes for the insurance company to not pay a claim.  Companies with a bad reputation and possibly a low rating tend to advertise like this and offer inferior coverage to the people who most need insurance protection (sad news).

Keep in mind, credit is not the only factor in your insurance rate.  Folks over 30 (all else constant) can usually get away with an excellent rate although they might have bad credit.  It all comes down to responsibility, and we can all admit that over all people over 30 might be more responsible than somebody in their 20’s. 

For more information contact your local independent agent, Texas Prime Insurance or visit our Progressive Insurance dedicated website.

Most (if not all quality insurers) run credit.  Depending on the financial stability of the company, a specific insurer may be more open to accept a customer with lower credit.  My recommendation is for you to shop you rate until you find a quality insurer who will not consider your less than perfect credit as high risk.  You can do this online or call a local independent agent who usually represents more than one company.  One of these companies may give you a better price!