Friday, April 14, 2006
Options To Replace Current U.S. Employer-Sponsored Health Insurance System Limited, Opinion Piece States
"If employers pull out of the health and pension business, who takes their place?" Wall Street Journal columnist David Wessel writes in a Journal opinion piece, adding, "Ultimately, there are three options, all with problems." One option, which business "resists," is to "make it cheaper for employers to offer benefits" through high-deductible health plans and other proposals or "force them to do so" through legislation, Wessel writes. A second option is to "make workers fend for themselves" or, "in a new Massachusetts wrinkle, require everyone to buy health insurance," Wessel writes. However, he adds that many employees might "find making wise decisions harder than advocates suggest" and that "moving toward individually purchased health insurance can undermine the benefits of pooling risk." According to Wessel, a third option is to "have government pick up more of the tab," but the federal government "hasn't any visible means of paying for the Social Security, Medicare and Medicaid benefits it already has promised" (Wessel, Wall Street Journal, 4/13).
Industry panel attacks Massachusetts governor's auto insurance plan
(Cape Cod Times (Hyannis, MA) (KRT) Via Thomson Dialog NewsEdge) Apr. 13--
Members of an industry panel slammed a key argument in the Romney administration's proposal to loosen the state's auto insurance regulations, telling an audience of Cape insurance agents that the changes would likely do nothing to benefit coastal property insurance policyholders.
The panel discussion -- which included leaders of the Massachusetts Insurance Federation and the Massachusetts Association of Insurance Agents, a consumer advocate and an executive from the state's third-largest auto insurer -- was sponsored by the Cape chapter of the Massachusetts Association of Insurance Women and was held Tuesday at the Hyannis Golf Club.
Gov. Mitt Romney has said that by eliminating rate-setting for auto insurance, the state can entice larger, national companies to do business in Massachusetts. Those companies, the administration has argued, would then be more inclined to write homeowners insurance policies on the Cape and Islands.
Concerns about hurricane risk have led a number of smaller, regional insurers to abandon the Cape, leaving many residents no alternative but the state's property insurer of last resort, the FAIR Plan. That program often costs property owners about twice their former premiums.
In recent years, the FAIR Plan has become the largest property insurer in the Cape and Islands market, with about 57,000 policies.
And just as a legislative committee prepares to advance a bill containing Romney's recommendations, the state insurance commissioner has also produced an analysis indicating that the state's property insurance market may lack the capital to pay out claims from a major storm -- further bolstering the need to attract large companies, such as State Farm.
During the panel discussion, however, John Kittel, senior vice president for Arbella Insurance Group, said the commissioner's analysis "should be considered an embarrassment."
Commissioner Julie Bowler's numbers show that the Massachusetts property insurance market has a lower surplus than the markets in all other New England states, at about $33 in surplus for every premium dollar. By contrast, Bowler found that Vermont has the largest surplus at about $449 in surplus for every premium dollar.
But Kittel said those numbers are moot because they don't take into account reinsurance, which insurance companies buy to help pay claims in event of catastrophes. In his own analysis, Kittel found that New York only has about $18 in surplus per premium dollar.
"It's a ridiculous statistic. It doesn't mean anything," Kittel said.
Jim Harrington, executive director of the Massachusetts Insurance Federation, disagreed with Kittel, saying Bowler's claims about inadequate capital are valid. The federation represents insurance companies in the state.
In the event of a hurricane, "the losses would be dramatic, and the regional carriers who command this market would not have the resources to sustain that," he said. Harrington added that Arbella is one of three insurers that have thrived under the current auto insurance system, and oppose changes.
However, Harrington said, he doubted national insurance carriers would be more willing to take on coastal homeowners policies, even if they did decide to venture into Massachusetts under Romney's changes.
"That won't fix coastal homeowner's insurance problems," he said.
Frank Mancini, president of the Massachusetts Association of Insurance Agents, also said he was skeptical of the Romney administration's claims.
He added that he thinks "a federal solution," such as a catastrophe fund to help pay claims, would be most effective for encouraging insurers to move back into coastal areas.
Christopher Goetcheus, spokesman for the state Division of Insurance, declined an invitation to attend Tuesday's panel discussion. But in a phone interview yesterday, he said the governor's proposed changes are necessary, both to benefit consumers by providing more choice, and to bring more capital into the state's homeowners insurance market to absorb the cost of a major storm.
Some companies don't buy reinsurance and reinsurers can also go bankrupt from costly catastrophes, he added.
"We are not well-positioned financially to handle a category 3-plus hurricane," he said.
Sharon Hawkins, senior vice president of Dowling & O'Neil Insurance in Hyannis, was one of the agents who attended the discussion.
Hawkins said she favors a more competitive auto insurance system, but doesn't think that will necessarily lead to more insurers moving back into Cape Cod.
"I don't think insurance carriers are going to change their position," she said.
But Hawkins said she would be eager to see the state create its own catastrophe fund, which might keep home insurers on the Cape and help address skyrocketing rates.
Members of an industry panel slammed a key argument in the Romney administration's proposal to loosen the state's auto insurance regulations, telling an audience of Cape insurance agents that the changes would likely do nothing to benefit coastal property insurance policyholders.
The panel discussion -- which included leaders of the Massachusetts Insurance Federation and the Massachusetts Association of Insurance Agents, a consumer advocate and an executive from the state's third-largest auto insurer -- was sponsored by the Cape chapter of the Massachusetts Association of Insurance Women and was held Tuesday at the Hyannis Golf Club.
Gov. Mitt Romney has said that by eliminating rate-setting for auto insurance, the state can entice larger, national companies to do business in Massachusetts. Those companies, the administration has argued, would then be more inclined to write homeowners insurance policies on the Cape and Islands.
Concerns about hurricane risk have led a number of smaller, regional insurers to abandon the Cape, leaving many residents no alternative but the state's property insurer of last resort, the FAIR Plan. That program often costs property owners about twice their former premiums.
In recent years, the FAIR Plan has become the largest property insurer in the Cape and Islands market, with about 57,000 policies.
And just as a legislative committee prepares to advance a bill containing Romney's recommendations, the state insurance commissioner has also produced an analysis indicating that the state's property insurance market may lack the capital to pay out claims from a major storm -- further bolstering the need to attract large companies, such as State Farm.
During the panel discussion, however, John Kittel, senior vice president for Arbella Insurance Group, said the commissioner's analysis "should be considered an embarrassment."
Commissioner Julie Bowler's numbers show that the Massachusetts property insurance market has a lower surplus than the markets in all other New England states, at about $33 in surplus for every premium dollar. By contrast, Bowler found that Vermont has the largest surplus at about $449 in surplus for every premium dollar.
But Kittel said those numbers are moot because they don't take into account reinsurance, which insurance companies buy to help pay claims in event of catastrophes. In his own analysis, Kittel found that New York only has about $18 in surplus per premium dollar.
"It's a ridiculous statistic. It doesn't mean anything," Kittel said.
Jim Harrington, executive director of the Massachusetts Insurance Federation, disagreed with Kittel, saying Bowler's claims about inadequate capital are valid. The federation represents insurance companies in the state.
In the event of a hurricane, "the losses would be dramatic, and the regional carriers who command this market would not have the resources to sustain that," he said. Harrington added that Arbella is one of three insurers that have thrived under the current auto insurance system, and oppose changes.
However, Harrington said, he doubted national insurance carriers would be more willing to take on coastal homeowners policies, even if they did decide to venture into Massachusetts under Romney's changes.
"That won't fix coastal homeowner's insurance problems," he said.
Frank Mancini, president of the Massachusetts Association of Insurance Agents, also said he was skeptical of the Romney administration's claims.
He added that he thinks "a federal solution," such as a catastrophe fund to help pay claims, would be most effective for encouraging insurers to move back into coastal areas.
Christopher Goetcheus, spokesman for the state Division of Insurance, declined an invitation to attend Tuesday's panel discussion. But in a phone interview yesterday, he said the governor's proposed changes are necessary, both to benefit consumers by providing more choice, and to bring more capital into the state's homeowners insurance market to absorb the cost of a major storm.
Some companies don't buy reinsurance and reinsurers can also go bankrupt from costly catastrophes, he added.
"We are not well-positioned financially to handle a category 3-plus hurricane," he said.
Sharon Hawkins, senior vice president of Dowling & O'Neil Insurance in Hyannis, was one of the agents who attended the discussion.
Hawkins said she favors a more competitive auto insurance system, but doesn't think that will necessarily lead to more insurers moving back into Cape Cod.
"I don't think insurance carriers are going to change their position," she said.
But Hawkins said she would be eager to see the state create its own catastrophe fund, which might keep home insurers on the Cape and help address skyrocketing rates.
Thursday, April 13, 2006
Aetna Expands Health Insurance Options for Individuals and Their Families into All Texas Counties
ARLINGTON, Texas--(BUSINESS WIRE)--April 12, 2006--Aetna (NYSE:AET) announced today that it has made available six preferred provider organization (PPO) plans for individuals and their families in 66 new counties throughout South and West Texas, the Hill Country, Central Texas and the Brazos Valley. Now available in all Texas counties, the six PPO plans, including two Aetna high-deductible health plans, are designed to provide affordable, comprehensive health coverage options for individuals and their families.
"We have seen strong interest in these plans within the past year, and believe it is important to broaden our offerings, allowing individuals and their families throughout the state of Texas the opportunity to enroll in cost-effective health plans that provide a wide range of choices and benefits levels," said Laurie Brubaker, head of Aetna Individual Markets. "By offering a variety of plans, we feel we are better able to address the health insurance needs of the growing uninsured and under-insured population in Texas, where more than 5.4 million people - or 25 percent of the population - are uninsured."(1)
Aetna is offering individuals and their families six new PPO plan designs. Four of the plans, which are called Aetna Advantage PPO plans, offer members the freedom to go directly to any doctor, hospital or health care professional - including specialists - for covered expenses, with no referrals required. If a member chooses a health care professional from Aetna's network of participating physicians and hospitals, out-of-pocket costs will be lower. The plans include "first dollar coverage" and no deductibles for in-network doctor office visits.
All Aetna Advantage PPO plans feature coverage for routine checkups and preventive care, specialty care, chiropractic care, hospitalization and surgery, diagnostic testing and emergency care, subject to applicable copayments, coinsurance and deductibles. The plans also include prescription drug coverage, subject to a deductible, copayments and calendar-year maximum, with no deductibles for generic prescriptions.
The additional two plans, Aetna high-deductible health plans, compatible with the Aetna HealthFund(R) Health Savings Account (HSA), offer members similar benefits to the Aetna Advantage PPO plans. However, members can take advantage of a flexible health benefits plan paired with an HSA. HSAs are tax-advantaged accounts used to pay for qualified medical expenses. HSA contributions are tax deductible and earn interest tax free. HSAs are portable, and unused balances can be carried forward from year to year, making them a strong value for consumers.
"We are dedicated to satisfying consumers' needs for choice, simplicity and affordability," said Brubaker. "Our plans are designed to address unique needs during particular stages in life such as graduating from college, getting married, raising a family, becoming a sole proprietor, being between jobs or retiring early. Individuals can log on to our website, choose the health insurance plans that best fit their health care needs, receive quotes and apply online."
In addition to Texas, Aetna plans for individuals and their families are currently being sold directly to consumers or through independent insurance agents and brokers in Arizona, California, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Ohio, Pennsylvania, Virginia and Washington, D.C. Additional information about Aetna's plans for individuals and their families is available at www.aetna.com/members/individuals/ or by calling 1-800-MY-HEALTH or your insurance agent.
"We have seen strong interest in these plans within the past year, and believe it is important to broaden our offerings, allowing individuals and their families throughout the state of Texas the opportunity to enroll in cost-effective health plans that provide a wide range of choices and benefits levels," said Laurie Brubaker, head of Aetna Individual Markets. "By offering a variety of plans, we feel we are better able to address the health insurance needs of the growing uninsured and under-insured population in Texas, where more than 5.4 million people - or 25 percent of the population - are uninsured."(1)
Aetna is offering individuals and their families six new PPO plan designs. Four of the plans, which are called Aetna Advantage PPO plans, offer members the freedom to go directly to any doctor, hospital or health care professional - including specialists - for covered expenses, with no referrals required. If a member chooses a health care professional from Aetna's network of participating physicians and hospitals, out-of-pocket costs will be lower. The plans include "first dollar coverage" and no deductibles for in-network doctor office visits.
All Aetna Advantage PPO plans feature coverage for routine checkups and preventive care, specialty care, chiropractic care, hospitalization and surgery, diagnostic testing and emergency care, subject to applicable copayments, coinsurance and deductibles. The plans also include prescription drug coverage, subject to a deductible, copayments and calendar-year maximum, with no deductibles for generic prescriptions.
The additional two plans, Aetna high-deductible health plans, compatible with the Aetna HealthFund(R) Health Savings Account (HSA), offer members similar benefits to the Aetna Advantage PPO plans. However, members can take advantage of a flexible health benefits plan paired with an HSA. HSAs are tax-advantaged accounts used to pay for qualified medical expenses. HSA contributions are tax deductible and earn interest tax free. HSAs are portable, and unused balances can be carried forward from year to year, making them a strong value for consumers.
"We are dedicated to satisfying consumers' needs for choice, simplicity and affordability," said Brubaker. "Our plans are designed to address unique needs during particular stages in life such as graduating from college, getting married, raising a family, becoming a sole proprietor, being between jobs or retiring early. Individuals can log on to our website, choose the health insurance plans that best fit their health care needs, receive quotes and apply online."
In addition to Texas, Aetna plans for individuals and their families are currently being sold directly to consumers or through independent insurance agents and brokers in Arizona, California, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Ohio, Pennsylvania, Virginia and Washington, D.C. Additional information about Aetna's plans for individuals and their families is available at www.aetna.com/members/individuals/ or by calling 1-800-MY-HEALTH or your insurance agent.
Insurance.com Sells 300,000 Auto Insurance Policies Since Inception: Financial News - Yahoo! Finance
Press Release
CLEVELAND, April 12 /PRNewswire/ -- Ohio-based insurance agency Insurance.com announced an important milestone in the history of their company.
"This quarter marks the sale of our 300,000th policy since we launched our first online auto insurance comparison shopping platform in June 2001," announced Dave Roush, CEO of Insurance.com.
"The Internet has become the first place many consumers visit to research and buy products, including all types of financial products. Our web site leverages the power of the Internet by bringing together the nation's leading auto insurance companies in a single marketplace where consumers can compare multiple rates, and buy that policy immediately, either online or on the phone from a licensed agent. No other website offers that kind of convenience or level of service."
Roush described the advantages of comparison shopping online for auto insurance, especially at this time of year: "Not only do consumers get to fine-tune the deductibles and coverage they want, they will also get to compare auto insurance rates, side-by-side. During tax season, we're all very conscious of our expenditures throughout the year, and this is a chance to re- evaluate whether or not you might be spending more than you need to on a critical expense such as insurance." Roush added, "It's a clear indication of how consumers are turning to Insurance.com to compare auto insurance rates, as we experienced a record sales month in March, beating the last record set only two months earlier."
In the past five years, the company has grown from a handful of employees to a bustling office of over 200 people. The sales center has experienced most of this growth in order to support increased call volume and expanded sales center hours, now open 8AM to 1AM seven days a week.
"We've experienced considerable growth in the last five years, and we expect to grow even more in the next five, with even more features and offerings," commented Roush. "While Insurance.com is the largest on-line auto insurance agency in the country, we are not a household name. We hope to change this over the next five years."
CLEVELAND, April 12 /PRNewswire/ -- Ohio-based insurance agency Insurance.com announced an important milestone in the history of their company.
"This quarter marks the sale of our 300,000th policy since we launched our first online auto insurance comparison shopping platform in June 2001," announced Dave Roush, CEO of Insurance.com.
"The Internet has become the first place many consumers visit to research and buy products, including all types of financial products. Our web site leverages the power of the Internet by bringing together the nation's leading auto insurance companies in a single marketplace where consumers can compare multiple rates, and buy that policy immediately, either online or on the phone from a licensed agent. No other website offers that kind of convenience or level of service."
Roush described the advantages of comparison shopping online for auto insurance, especially at this time of year: "Not only do consumers get to fine-tune the deductibles and coverage they want, they will also get to compare auto insurance rates, side-by-side. During tax season, we're all very conscious of our expenditures throughout the year, and this is a chance to re- evaluate whether or not you might be spending more than you need to on a critical expense such as insurance." Roush added, "It's a clear indication of how consumers are turning to Insurance.com to compare auto insurance rates, as we experienced a record sales month in March, beating the last record set only two months earlier."
In the past five years, the company has grown from a handful of employees to a bustling office of over 200 people. The sales center has experienced most of this growth in order to support increased call volume and expanded sales center hours, now open 8AM to 1AM seven days a week.
"We've experienced considerable growth in the last five years, and we expect to grow even more in the next five, with even more features and offerings," commented Roush. "While Insurance.com is the largest on-line auto insurance agency in the country, we are not a household name. We hope to change this over the next five years."
Wednesday, April 12, 2006
Mandating Health Insurance
Winston-Salem Journal
Suddenly, the nation's health-care crisis doesn't look unsolvable.
Massachusetts, with a bipartisan effort involving Republican Gov. Mitt Romney and the Democratic legislature, has created a template for assuring almost universal health-care coverage. North Carolina, other states and the federal government should be considering the plan as a means for insuring all Americans.
The Massachusetts plan is based on a simple concept: All residents have a responsibility to insure themselves and their families. If a state can require all licensed drivers to have auto insurance, it should require everyone who might need health care to have health insurance, Romney says.
Individualists might find fault with this message, saying, "That's my business." But they're wrong. Universal coverage is everyone's business because an uninsured individual often ends up drawing medical care for free - free only for himself. His costs are shifted onto the rest of us, suckers who are responsible enough to have insurance so we can pay health-care providers for their services.
The Massachusetts plan is not a government-only program. It is based on a combination of private plans, government subsidies for the poor and tax penalties for those who do not participate. Leaders decided to get serious about requiring all the state's residents to get insured.
Massachusetts, a state roughly the same population as North Carolina, has more than 500,000 uninsured residents. When they seek medical care, they either pay out of pocket or, more likely, don't pay at all. If they don't pay, medical providers shift the costs of that care onto others. That's why health-insurance companies and advocates for the poor and for business like the Massachusetts plan. With 95 percent of these more than half-million people insured, there'll be much less cost shifting; that should help providers reduce the cost of services to those who pay through their insurance companies. It might even lead to a lowering, or at least a leveling off, of health-care premiums.
It's not clear whether this plan would work in North Carolina. No doubt, differences in state law would require alterations. But state leaders here should, at the least, be studying the plan to see if it could work.
State leaders should also consider the political angle of this story. A Republican governor who is running for president found a way to work with a heavily Democratic legislature that wishes him no success in that campaign. But Massachusetts needed health-care reform, and the two sides found a way to agree. It would be nice if politicians in Washington, Raleigh and every other state capital could learn from that experience. It would make us all that much healthier.
Suddenly, the nation's health-care crisis doesn't look unsolvable.
Massachusetts, with a bipartisan effort involving Republican Gov. Mitt Romney and the Democratic legislature, has created a template for assuring almost universal health-care coverage. North Carolina, other states and the federal government should be considering the plan as a means for insuring all Americans.
The Massachusetts plan is based on a simple concept: All residents have a responsibility to insure themselves and their families. If a state can require all licensed drivers to have auto insurance, it should require everyone who might need health care to have health insurance, Romney says.
Individualists might find fault with this message, saying, "That's my business." But they're wrong. Universal coverage is everyone's business because an uninsured individual often ends up drawing medical care for free - free only for himself. His costs are shifted onto the rest of us, suckers who are responsible enough to have insurance so we can pay health-care providers for their services.
The Massachusetts plan is not a government-only program. It is based on a combination of private plans, government subsidies for the poor and tax penalties for those who do not participate. Leaders decided to get serious about requiring all the state's residents to get insured.
Massachusetts, a state roughly the same population as North Carolina, has more than 500,000 uninsured residents. When they seek medical care, they either pay out of pocket or, more likely, don't pay at all. If they don't pay, medical providers shift the costs of that care onto others. That's why health-insurance companies and advocates for the poor and for business like the Massachusetts plan. With 95 percent of these more than half-million people insured, there'll be much less cost shifting; that should help providers reduce the cost of services to those who pay through their insurance companies. It might even lead to a lowering, or at least a leveling off, of health-care premiums.
It's not clear whether this plan would work in North Carolina. No doubt, differences in state law would require alterations. But state leaders here should, at the least, be studying the plan to see if it could work.
State leaders should also consider the political angle of this story. A Republican governor who is running for president found a way to work with a heavily Democratic legislature that wishes him no success in that campaign. But Massachusetts needed health-care reform, and the two sides found a way to agree. It would be nice if politicians in Washington, Raleigh and every other state capital could learn from that experience. It would make us all that much healthier.
Insurance chief cuts top auto insurance rate
ANDREW SHAIN
ashain@charlotteobserver.com
Auto insurance rates for some N.C. drivers will drop twice in the next six months.
N.C. Insurance Commissioner Jim Long decided Tuesday to drop the maximum rate charged by insurers by an average of 2.9 percent statewide on Nov. 15. This is on top of a 2.5 percent average drop that starts May 15.
For some Charlotte-area drivers, the combined decreases could save about $80 in annual premiums.
But not all motorists will save money.
That's because an estimated 75 percent of N.C. drivers receive discounts on their premiums for having good driving records, good credit or their homeowners policy with the same company. Insurers have said they likely will keep premiums for those policyholders steady. The average discount is about 15 percent.
Insurers had sought a 7.4 percent average increase in the top rates to pay for rising medical claims costs from accidents, said Ray Evans, director of the N.C. Rate Bureau, which represents the industry in rate cases. Long said he proposed a rate decrease because insurers reported a drop in the number of claims.
Auto insurance rates have been falling nationally since last year's spiking gas prices curbed some driving, said Bob Hunter, insurance director for the Consumer Federation of America.
Rates are down about 10 percent, he estimated. "More people are carpooling, taking the bus, riding bikes," Hunter said.
ashain@charlotteobserver.com
Auto insurance rates for some N.C. drivers will drop twice in the next six months.
N.C. Insurance Commissioner Jim Long decided Tuesday to drop the maximum rate charged by insurers by an average of 2.9 percent statewide on Nov. 15. This is on top of a 2.5 percent average drop that starts May 15.
For some Charlotte-area drivers, the combined decreases could save about $80 in annual premiums.
But not all motorists will save money.
That's because an estimated 75 percent of N.C. drivers receive discounts on their premiums for having good driving records, good credit or their homeowners policy with the same company. Insurers have said they likely will keep premiums for those policyholders steady. The average discount is about 15 percent.
Insurers had sought a 7.4 percent average increase in the top rates to pay for rising medical claims costs from accidents, said Ray Evans, director of the N.C. Rate Bureau, which represents the industry in rate cases. Long said he proposed a rate decrease because insurers reported a drop in the number of claims.
Auto insurance rates have been falling nationally since last year's spiking gas prices curbed some driving, said Bob Hunter, insurance director for the Consumer Federation of America.
Rates are down about 10 percent, he estimated. "More people are carpooling, taking the bus, riding bikes," Hunter said.
Tuesday, April 11, 2006
Car Insurance suit settled
BY BRIAN BRUEGGEMANN
News-Democrat
Attorneys at a Wood River law firm on Monday said a settlement covering class-action lawsuits they filed against dozens of auto insurance companies is worth an estimated $92 million.
The Lakin Law Firm of Wood River and the Chicago law firm of Freed & Weiss LLC filed the lawsuits in 2001 against multiple providers of car insurance. The lawsuits alleged the companies used a computer system to routinely pay below-market values for vehicles wrecked beyond repair.
The final settlement was approved in December by Madison County Associate Judge Ralph Mendelsohn, but Lakin attorney Richard Burke on Monday said the period during which the defendants could have sought an appeal only recently expired.
Burke said roughly 3 million people were eligible to make claims for $5 to $132. The plaintiff attorneys were awarded $16.1 million in fees, to be paid by the defendants.
Those eligible to make a claim are policyholders who received a payment for a total-loss vehicle claim between Jan. 28, 1989, and July 18, 2005, and whose vehicle value was calculated with software provided by a company called CCC Information Services Inc.
The total amount the insurance companies will pay to policyholders depends on the number of people making claims. Burke said the $92 million figure is an approximation of the value of the settlement.
The Lakin Law Firm on Monday sent out a news release about the settlement and urged policyholders to make claims.
The firm's managing partner, Brad Lakin, stated: "Too often in some of these big cases, many impacted people never make a claim for damages. This is an excellent and appropriate settlement for consumers and I urge them to take just a few minutes to make their claim and receive the settlement to which they are entitled."
One problem: It's too late for customers to make a claim. Claims had to be submitted by March 6.
Burke said "thousands" of claims had been made by consumers, but he didn't have an exact figure. A spokesman for a company that is handling the claims could not be reached for comment. Burke said roughly 3 million notices regarding the settlement were mailed to consumers, using data provided by the companies.
Burke said the plaintiff attorneys' fees are fair. He said the attorneys invested a vast amount of time and resources in the case. About 189,000 insurance claims were evaluated to determine the values assigned to wrecked vehicles were routinely below their traditional values, Burke said.
News-Democrat
Attorneys at a Wood River law firm on Monday said a settlement covering class-action lawsuits they filed against dozens of auto insurance companies is worth an estimated $92 million.
The Lakin Law Firm of Wood River and the Chicago law firm of Freed & Weiss LLC filed the lawsuits in 2001 against multiple providers of car insurance. The lawsuits alleged the companies used a computer system to routinely pay below-market values for vehicles wrecked beyond repair.
The final settlement was approved in December by Madison County Associate Judge Ralph Mendelsohn, but Lakin attorney Richard Burke on Monday said the period during which the defendants could have sought an appeal only recently expired.
Burke said roughly 3 million people were eligible to make claims for $5 to $132. The plaintiff attorneys were awarded $16.1 million in fees, to be paid by the defendants.
Those eligible to make a claim are policyholders who received a payment for a total-loss vehicle claim between Jan. 28, 1989, and July 18, 2005, and whose vehicle value was calculated with software provided by a company called CCC Information Services Inc.
The total amount the insurance companies will pay to policyholders depends on the number of people making claims. Burke said the $92 million figure is an approximation of the value of the settlement.
The Lakin Law Firm on Monday sent out a news release about the settlement and urged policyholders to make claims.
The firm's managing partner, Brad Lakin, stated: "Too often in some of these big cases, many impacted people never make a claim for damages. This is an excellent and appropriate settlement for consumers and I urge them to take just a few minutes to make their claim and receive the settlement to which they are entitled."
One problem: It's too late for customers to make a claim. Claims had to be submitted by March 6.
Burke said "thousands" of claims had been made by consumers, but he didn't have an exact figure. A spokesman for a company that is handling the claims could not be reached for comment. Burke said roughly 3 million notices regarding the settlement were mailed to consumers, using data provided by the companies.
Burke said the plaintiff attorneys' fees are fair. He said the attorneys invested a vast amount of time and resources in the case. About 189,000 insurance claims were evaluated to determine the values assigned to wrecked vehicles were routinely below their traditional values, Burke said.
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