By CLARE JELLICK
OF THE JOURNAL STAR
PEORIA - Employees of at least six local employers have received letters from an insurance company saying their names and Social Security numbers were on a server stolen from the company in March.
The cities of Peoria and East Peoria reported at least 1,500 employees, families and retirees have received letters from the company, Medical Excess, LLC. Some workers at District 150, the city of Pekin, Peoria County and Dental Arts Laboratory Inc. also have received letters, but it's unclear how many.
"We had people calling us saying, 'Is this legitimate?' People don't understand why some firm in California would suddenly be sending you a letter. It was very upsetting to some of our employees," said Pat Parsons, human resources director for the city of Peoria. He received a letter along with 1,350 other families and individuals who have city insurance.
Medical Excess sells excess insurance, which allows employers to protect themselves against employee medical costs above a certain amount.
Social Security numbers for about 970,000 people were lost when the server was stolen out of a Midwest office, but no one has reported misuse of data to date, said Chris Winans, a spokesman for parent company American International Group.
Employees' information had been submitted by 690 insurance brokers seeking excess insurance quotes for employers.
Thursday, June 29, 2006
Car Insurance - check before storms hit
By JIMMY SETTLE
The (Clarksville, Tenn.) Leaf-Chronicle
06/26/2006
From tornadoes, hurricanes and hailstorms to floods and wildfires, it's been a stormy year thus far across the nation. That's not only traumatizing, but terribly expensive.
For property owners, including auto owners, the combined price tag from all of these natural disasters is still soaring.
In fact, the first half-decade of the 21st century brought a steady rise in the number of vehicle losses because of natural disasters. That number nearly doubled in the five years between 2001 and 2005, according to ISO's Property Claim Services unit, which tracks insured property losses from catastrophes in the U.S., Puerto Rico and the U.S. Virgin Islands.
The number of reported claims for vehicle loss from natural disasters recorded by PCS increased steadily, from 485,150 claims in 2001 to 982,350 claims in 2005, for a total of 3.3 million losses over the past five years.
PCS's numbers track auto insurance claims on vehicles with insurance policies that include comprehensive coverage, which covers damages or loss due to natural disasters, catastrophes or events other than a collision with another car.
"Drivers spend a lot of money on auto insurance and it is important for them to be as familiar as possible with what their coverage includes when they're making their purchase decision," said Lori Austin, branch manager of the Tenn-Tucky branch of the Better Business Bureau. "But too often, people shopping only for the lowest rates don't notice their lack of certain types of coverage until they try to make a claim."
The best advice, she said, is to know what your auto insurance covers and what you should do if your car is damaged in a storm by following these tips:
Be familiar with the details of your coverage. Don't wait to find out that your policy doesn't include comprehensive coverage, or won't automatically cover costs for emergency roadside assistance or a replacement rental car.
Report damage as soon as possible. If your car is not drivable, your agent or claims center may be able to save you time and money by having the car towed directly to the repair facility instead of to a temporary storage facility. In addition, arrangements may be made immediately to provide you with a replacement rental car, if your policy includes this coverage.
Know what your deductible is and any other additional charges before authorizing work. Expect your insurance adjuster, claims representative or repair facility appraiser to review the damage with you and explain the repair process, including the use of original or generic auto parts.
Before authorizing repairs, know what your deductible is. Also, be aware of any additional charges you will be expected to pay once repairs are complete.
Ask about warranties on repairs. Ask whether your insurer has a repair facility referral program that offers a written limited or lifetime repair warranty backed both by the repairer and insurer for as long as you own your vehicle.
Do business only with a reputable company. Obtain insurance from companies, independent brokers or direct marketers that have a proven track record of handling auto insurance claims effectively.
Get a referral or contact your BBB or state Department of Insurance.
According to the Insurance Information Institute, comprehensive coverage will reimburse you for loss due to damage caused by something other than a collision with another car or object, such as fire, falling objects, catastrophic storms, vandalism or contact with animals.
Flooding also is covered by auto insurance, as long as your policy includes comprehensive.
Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.
The (Clarksville, Tenn.) Leaf-Chronicle
06/26/2006
From tornadoes, hurricanes and hailstorms to floods and wildfires, it's been a stormy year thus far across the nation. That's not only traumatizing, but terribly expensive.
For property owners, including auto owners, the combined price tag from all of these natural disasters is still soaring.
In fact, the first half-decade of the 21st century brought a steady rise in the number of vehicle losses because of natural disasters. That number nearly doubled in the five years between 2001 and 2005, according to ISO's Property Claim Services unit, which tracks insured property losses from catastrophes in the U.S., Puerto Rico and the U.S. Virgin Islands.
The number of reported claims for vehicle loss from natural disasters recorded by PCS increased steadily, from 485,150 claims in 2001 to 982,350 claims in 2005, for a total of 3.3 million losses over the past five years.
PCS's numbers track auto insurance claims on vehicles with insurance policies that include comprehensive coverage, which covers damages or loss due to natural disasters, catastrophes or events other than a collision with another car.
"Drivers spend a lot of money on auto insurance and it is important for them to be as familiar as possible with what their coverage includes when they're making their purchase decision," said Lori Austin, branch manager of the Tenn-Tucky branch of the Better Business Bureau. "But too often, people shopping only for the lowest rates don't notice their lack of certain types of coverage until they try to make a claim."
The best advice, she said, is to know what your auto insurance covers and what you should do if your car is damaged in a storm by following these tips:
Be familiar with the details of your coverage. Don't wait to find out that your policy doesn't include comprehensive coverage, or won't automatically cover costs for emergency roadside assistance or a replacement rental car.
Report damage as soon as possible. If your car is not drivable, your agent or claims center may be able to save you time and money by having the car towed directly to the repair facility instead of to a temporary storage facility. In addition, arrangements may be made immediately to provide you with a replacement rental car, if your policy includes this coverage.
Know what your deductible is and any other additional charges before authorizing work. Expect your insurance adjuster, claims representative or repair facility appraiser to review the damage with you and explain the repair process, including the use of original or generic auto parts.
Before authorizing repairs, know what your deductible is. Also, be aware of any additional charges you will be expected to pay once repairs are complete.
Ask about warranties on repairs. Ask whether your insurer has a repair facility referral program that offers a written limited or lifetime repair warranty backed both by the repairer and insurer for as long as you own your vehicle.
Do business only with a reputable company. Obtain insurance from companies, independent brokers or direct marketers that have a proven track record of handling auto insurance claims effectively.
Get a referral or contact your BBB or state Department of Insurance.
According to the Insurance Information Institute, comprehensive coverage will reimburse you for loss due to damage caused by something other than a collision with another car or object, such as fire, falling objects, catastrophic storms, vandalism or contact with animals.
Flooding also is covered by auto insurance, as long as your policy includes comprehensive.
Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.
Tuesday, June 27, 2006
Florida Health Insurance Comparison Site
The Florida Office of Insurance Regulation has launched a Web site to allow Floridians to compare Florida Health Insurance and search the benefits and premiums for small employer health plans offered in the state.
Small businesses can use the site to get a sample monthly cost to provide health insurance for their employees.
The 2005 legislature authorized the office to create a system to collect and display necessary data from insurers and health care providers so Floridians could make informed decisions about their health care and health insurance options.
"There is widespread agreement that if we are going to make health care more accessible and affordable we have to make our health care system more transparent," Insurance Commissioner Kevin McCarty said. "This new tool provides a giant step in that direction and will make it much easier for our consumers and businesses to shop for coverage."
The Web site allows small employers to view small group major medical health insurance rates for available standard, basic and high deductible health. Small businesses can enter the employees they employ in various categories and calculate an estimated monthly cost for their company.
In addition to searching for small group employer rates, the Web site is to have links for frequently asked questions on small employer heath insurance, links to various health insurance consumer guides and information for consumers to request assistance with the Web site or for information on health insurance.
The state government said it does not endorse or recommend any of the plans and encourages consumers to contact carriers directly if they are interested in any of the plans.
Small businesses can use the site to get a sample monthly cost to provide health insurance for their employees.
The 2005 legislature authorized the office to create a system to collect and display necessary data from insurers and health care providers so Floridians could make informed decisions about their health care and health insurance options.
"There is widespread agreement that if we are going to make health care more accessible and affordable we have to make our health care system more transparent," Insurance Commissioner Kevin McCarty said. "This new tool provides a giant step in that direction and will make it much easier for our consumers and businesses to shop for coverage."
The Web site allows small employers to view small group major medical health insurance rates for available standard, basic and high deductible health. Small businesses can enter the employees they employ in various categories and calculate an estimated monthly cost for their company.
In addition to searching for small group employer rates, the Web site is to have links for frequently asked questions on small employer heath insurance, links to various health insurance consumer guides and information for consumers to request assistance with the Web site or for information on health insurance.
The state government said it does not endorse or recommend any of the plans and encourages consumers to contact carriers directly if they are interested in any of the plans.
MIchigan Auto Insurance Cost Reduction BIll
Michigan drivers over the age of 50 may have some auto insurance discounts coming their way. The state house has passed two bills that would allow auto insurers to offer premium discounts for drivers over 50 who complete a certified traffic accident prevention course. It's meant to provide some relief for older Detroit drivers who pay higher premiums. The bills now move over to the state senate.
Friday, June 23, 2006
41.2M in U.S. Lacked Health Insurance Last Year
From KaiserNetwork.org
Approximately 41.2 million U.S. residents, or 14.2%, of the U.S. population, had no health insurance in 2005 at a specific point in time, demonstrating a small improvement over 2004, according to a survey published on Wednesday by the National Center for Health Statistics, Reuters reports (Reuters, 6/21). Study results were based on responses from 98,300 U.S. residents. According to the study:
29.2 million individuals, or 10% of the population, had been uninsured for more than a year at the time of the survey;
51.3 million people had been uninsured for at least part of the previous year (Mufson/Eilperin, Washington Post, 6/22);
About 6.5 million children, or 8.9% of individuals younger than age 18, lacked health insurance in 2005, about one-third fewer than eight years earlier, Bloomberg News/Los Angeles Times reports (Bloomberg News/Los Angeles Times, 6/22). In 1997, 15.4% of U.S. adults and 13.9% of U.S. children were uninsured;
Coverage varied by state, with Massachusetts having the lowest uninsured rate at 6% and Texas having the highest at 24%;
More than 70% of adults and 62% of children had private insurance coverage; and
Almost 30% of children and 11.5% of adults had some sort of public insurance such as SCHIP, Medicare or Medicaid (Reuters, 6/21).
Approximately 41.2 million U.S. residents, or 14.2%, of the U.S. population, had no health insurance in 2005 at a specific point in time, demonstrating a small improvement over 2004, according to a survey published on Wednesday by the National Center for Health Statistics, Reuters reports (Reuters, 6/21). Study results were based on responses from 98,300 U.S. residents. According to the study:
29.2 million individuals, or 10% of the population, had been uninsured for more than a year at the time of the survey;
51.3 million people had been uninsured for at least part of the previous year (Mufson/Eilperin, Washington Post, 6/22);
About 6.5 million children, or 8.9% of individuals younger than age 18, lacked health insurance in 2005, about one-third fewer than eight years earlier, Bloomberg News/Los Angeles Times reports (Bloomberg News/Los Angeles Times, 6/22). In 1997, 15.4% of U.S. adults and 13.9% of U.S. children were uninsured;
Coverage varied by state, with Massachusetts having the lowest uninsured rate at 6% and Texas having the highest at 24%;
More than 70% of adults and 62% of children had private insurance coverage; and
Almost 30% of children and 11.5% of adults had some sort of public insurance such as SCHIP, Medicare or Medicaid (Reuters, 6/21).
Florida Battles Car Insurance Fraud
Richard Burnett | Sentinel Staff Writer
Posted June 23, 2006
Florida's political leaders collided this spring over what to do about auto-insurance fraud.
Legislative proposals fell by the wayside or were vetoed by the governor. A few small measures await his signature. Meanwhile, a survey released this week indicates the problem here is as bad as ever.
Six cities in Florida -- more than from any other state -- made the latest ranking of the 25 cities with the most questionable auto-insurance claims last year, according to the National Insurance Crime Bureau, an insurance-industry group based in New York.
With 244 suspect cases in 2005 and early 2006, Orlando came in sixth, up two spots in this year's study, which is conducted annually. Miami came in third, with 588 cases. Tampa, Hialeah, Fort Lauderdale and Jacksonville also made the top 25 metro areas.
Industry officials say Florida has done a much better job recently of prosecuting auto fraud -- its conviction rate has been tops in the U.S. in recent years. But the problem refuses to go away.
"Florida has some of the worst auto-insurance fraud problems of any state," said Frank Quiggle, a spokesman for the Coalition Against Insurance Fraud, a watchdog group that comprises consumer advocates, insurers and law enforcement agencies.
"The fraud fighters have mounted an energetic response," he said, "but they need more effective tools to encourage prosecutions and increase the odds of conviction."
Florida's no-fault insurance law is widely blamed for the problem. It requires all car owners to carry $10,000 in personal-injury coverage, and it requires insurers to pay claims up to that amount regardless of who's at fault in an accident.
When the law was passed in 1971, it was intended to reduce the number of personal-injury lawsuits and a glut of uninsured drivers seeking medical treatment.
But insurers say the personal-injury protection, or PIP, law created a system that fraud rings have easily exploited over the years, staging accidents, operating sham injury-treatment clinics, and filing billions of dollars' worth of bogus medical claims. Such operations employ "runners" who recruit participants for staged collisions, and hire corrupt clinics to process the bogus medical claims.
Certain provisions of the Florida law are particularly troublesome, insurers say, such as the requirement that personal-injury claims must be paid within 30 days, which gives insurers little time to investigate suspicious cases.
Auto-insurance fraud generates losses of about $30 billion annually, including more than $1 billion a year in Florida alone, according to industry estimates. Those losses result in higher premiums for all auto-insurance customers, the industry says -- an additional $250 or more a year per customer.
A dozen other states also have PIP laws, and most of them have run into similar problems. Colorado, for example, repealed its PIP law three years ago, with mixed results: Auto-insurance rates fell an average of 20 percent or more, and new insurers entered the market, but health-insurance rates increased as hospitals ended up treating more uninsured motorists.
Insurers and consumer advocates have found some rare common ground in criticizing Florida's no-fault program. Both have pushed for legislation that would close the law's loopholes, step up enforcement efforts, and toughen sentences for those convicted of fraud.
The original PIP law was "a great idea -- to make people more responsible for their medical care," said Walter Dartland, a former assistant state attorney general who is now director of the Tallahassee-based Consumer Federation of the Southeast, a nonprofit advocacy group.
"But now all these people are jumping in and treating it like a gold mine, filing claim after claim for $10,000," he said. "Florida PIP law is just not going to work, unless we have strong anti-fraud efforts to root these people out, strong requirements as to who can provide PIP services, and mandatory sentencing -- not probation -- so they won't keep ripping people off."
Florida lawmakers have considered reforming or even killing the no-fault system. Five years ago, the Legislature stiffened penalties for those convicted of fraud, and tightened licensing requirements for injury clinics.
Legislators took up the issue again this year, with the no-fault law set to automatically expire in October 2007. They passed a controversial reform bill that would have extended the no-fault provisions to 2009 while providing some additional money to improve enforcement. Gov. Jeb Bush vetoed the measure, however, saying it didn't go far enough. With the law scheduled to sunset in about 15 months, the Legislature is expected to revisit the issue next spring.
Several other anti-fraud bills with ties to the no-fault program still await Bush's signature. One would try to bar the so-called runners from gaining access to police reports showing the names of traffic-accident victims. Another would toughen penalties for "paper accident fraud" -- an increasingly popular crime that relies on forged documents and claims involving fictitious accidents.
Florida regulators say they have made progress in fighting the problem. Hundreds of arrests have knocked many perpetrators out of action in recent years.
Almost 300 people have been jailed since mid-2005 on auto-fraud charges, up 43 percent from the previous 12-month period, according to the latest figures from the Florida Department of Financial Services. More than 200 cases resulted in convictions, up 150 percent from the year before, state officials say.
Regulators acknowledge, however, that only a small fraction of the fraudsters out there are getting caught and convicted: According to the National Insurance Crime Bureau's latest figures, insurers identified almost 1,400 suspect auto-insurance claims in Florida in the past year.
"All law enforcement faces the same challenge -- you are never going to catch everyone," said Nine Banister, spokeswoman for the Department of Financial Services. "Personal-injury fraud is especially perplexing, in that the schemes often involve so many people."
Posted June 23, 2006
Florida's political leaders collided this spring over what to do about auto-insurance fraud.
Legislative proposals fell by the wayside or were vetoed by the governor. A few small measures await his signature. Meanwhile, a survey released this week indicates the problem here is as bad as ever.
Six cities in Florida -- more than from any other state -- made the latest ranking of the 25 cities with the most questionable auto-insurance claims last year, according to the National Insurance Crime Bureau, an insurance-industry group based in New York.
With 244 suspect cases in 2005 and early 2006, Orlando came in sixth, up two spots in this year's study, which is conducted annually. Miami came in third, with 588 cases. Tampa, Hialeah, Fort Lauderdale and Jacksonville also made the top 25 metro areas.
Industry officials say Florida has done a much better job recently of prosecuting auto fraud -- its conviction rate has been tops in the U.S. in recent years. But the problem refuses to go away.
"Florida has some of the worst auto-insurance fraud problems of any state," said Frank Quiggle, a spokesman for the Coalition Against Insurance Fraud, a watchdog group that comprises consumer advocates, insurers and law enforcement agencies.
"The fraud fighters have mounted an energetic response," he said, "but they need more effective tools to encourage prosecutions and increase the odds of conviction."
Florida's no-fault insurance law is widely blamed for the problem. It requires all car owners to carry $10,000 in personal-injury coverage, and it requires insurers to pay claims up to that amount regardless of who's at fault in an accident.
When the law was passed in 1971, it was intended to reduce the number of personal-injury lawsuits and a glut of uninsured drivers seeking medical treatment.
But insurers say the personal-injury protection, or PIP, law created a system that fraud rings have easily exploited over the years, staging accidents, operating sham injury-treatment clinics, and filing billions of dollars' worth of bogus medical claims. Such operations employ "runners" who recruit participants for staged collisions, and hire corrupt clinics to process the bogus medical claims.
Certain provisions of the Florida law are particularly troublesome, insurers say, such as the requirement that personal-injury claims must be paid within 30 days, which gives insurers little time to investigate suspicious cases.
Auto-insurance fraud generates losses of about $30 billion annually, including more than $1 billion a year in Florida alone, according to industry estimates. Those losses result in higher premiums for all auto-insurance customers, the industry says -- an additional $250 or more a year per customer.
A dozen other states also have PIP laws, and most of them have run into similar problems. Colorado, for example, repealed its PIP law three years ago, with mixed results: Auto-insurance rates fell an average of 20 percent or more, and new insurers entered the market, but health-insurance rates increased as hospitals ended up treating more uninsured motorists.
Insurers and consumer advocates have found some rare common ground in criticizing Florida's no-fault program. Both have pushed for legislation that would close the law's loopholes, step up enforcement efforts, and toughen sentences for those convicted of fraud.
The original PIP law was "a great idea -- to make people more responsible for their medical care," said Walter Dartland, a former assistant state attorney general who is now director of the Tallahassee-based Consumer Federation of the Southeast, a nonprofit advocacy group.
"But now all these people are jumping in and treating it like a gold mine, filing claim after claim for $10,000," he said. "Florida PIP law is just not going to work, unless we have strong anti-fraud efforts to root these people out, strong requirements as to who can provide PIP services, and mandatory sentencing -- not probation -- so they won't keep ripping people off."
Florida lawmakers have considered reforming or even killing the no-fault system. Five years ago, the Legislature stiffened penalties for those convicted of fraud, and tightened licensing requirements for injury clinics.
Legislators took up the issue again this year, with the no-fault law set to automatically expire in October 2007. They passed a controversial reform bill that would have extended the no-fault provisions to 2009 while providing some additional money to improve enforcement. Gov. Jeb Bush vetoed the measure, however, saying it didn't go far enough. With the law scheduled to sunset in about 15 months, the Legislature is expected to revisit the issue next spring.
Several other anti-fraud bills with ties to the no-fault program still await Bush's signature. One would try to bar the so-called runners from gaining access to police reports showing the names of traffic-accident victims. Another would toughen penalties for "paper accident fraud" -- an increasingly popular crime that relies on forged documents and claims involving fictitious accidents.
Florida regulators say they have made progress in fighting the problem. Hundreds of arrests have knocked many perpetrators out of action in recent years.
Almost 300 people have been jailed since mid-2005 on auto-fraud charges, up 43 percent from the previous 12-month period, according to the latest figures from the Florida Department of Financial Services. More than 200 cases resulted in convictions, up 150 percent from the year before, state officials say.
Regulators acknowledge, however, that only a small fraction of the fraudsters out there are getting caught and convicted: According to the National Insurance Crime Bureau's latest figures, insurers identified almost 1,400 suspect auto-insurance claims in Florida in the past year.
"All law enforcement faces the same challenge -- you are never going to catch everyone," said Nine Banister, spokeswoman for the Department of Financial Services. "Personal-injury fraud is especially perplexing, in that the schemes often involve so many people."
Thursday, June 22, 2006
Fewer US Kids Lack Health Insurance
From Bloomberg News
June 22, 2006
About 6.5 million American children lacked health insurance in 2005, about a third fewer than eight years earlier as states provided more coverage for the needy, the U.S. government estimated.
Still, about 41.2 million Americans, including about 1 in every 10 under age 18, had no health insurance last year, researchers for the Hyattsville, Md.-based National Center for Health Statistics said.
Although the uninsured made up about 14.2% of the U.S. population, only 8.9% of people under age 18 lacked coverage, the researchers wrote.
June 22, 2006
About 6.5 million American children lacked health insurance in 2005, about a third fewer than eight years earlier as states provided more coverage for the needy, the U.S. government estimated.
Still, about 41.2 million Americans, including about 1 in every 10 under age 18, had no health insurance last year, researchers for the Hyattsville, Md.-based National Center for Health Statistics said.
Although the uninsured made up about 14.2% of the U.S. population, only 8.9% of people under age 18 lacked coverage, the researchers wrote.
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