State insurance department: act quickly to protect your property after severe storms

Jefferson City, Mo. – As residents in central and eastern Missouri recover from New Year’s Eve tornadoes, the Missouri Department of Insurance is offering advice for consumers dealing with their insurance companies and property damage. Director John M. Huff says if you haven’t already contacted your insurance agent or company, that should be step one. Other tips offered by Huff:

Keep a record of the time, date, topic and name of the person you talk to every time you call your agent or company.
If you can’t live in your house, your homeowners policy may pay for your expenses if you need to live somewhere else while repairs are made. That may include food expenses, as well as lodging. Ask your insurance agent about your coverage.
Make temporary repairs to protect your property from further damage. For example, put a tarp over damaged sections of roof. Your homeowners policy may not cover further damage you could have prevented.
If your pipes have burst, shut off the water supply to those pipes and to the entire house if necessary.
Survey the damage and take pictures or shoot video, if possible.
Make a list of all your property that was destroyed or damaged.Note the approximate date, price and place of purchase and attach any sales receipt you may have. Your insurance company may ask for this information.
Your insurance company will send an adjuster to inspect your damage and offer a certain amount of money for your claim. Make sure the adjuster has identification – if necessary, check with your insurance company to verify the adjuster is authorized to represent the company. Remember that adjustors are paid by insurers, so the adjuster should not ask you for any money or to sign a contract.
Be suspicious of anyone who offers to get you more money for your insurance claim. A “public adjuster” – required to be licensed by the Department of Insurance – may offer to help you get more money from your insurer. Public adjusters will require part of your claim settlement as payment for their services. You are not required to hire a public adjuster to file a claim. In general, consider hiring a public adjuster only after your insurer makes a settlement offer and when you anticipate any settlement increase obtained by the public adjuster will exceed the extra cost.
Be suspicious of repair contractors who come door to door. Don’t pay up front for repair services. Work with companies known to you or recommended by someone you trust. Check for complaints against repair contractors by calling the Attorney General’s Office at 800-392-8222 or visit ago.mo.gov.
Huff encourages consumers to make a list of their personal property to make filing insurance claims easier. The department offers a free home inventory checklist, available online for download or by calling the department.

Consumers with questions or who believe their claim has not been handled correctly can call the Insurance Consumer Hotline at 1-800-726-7390 or file a complaint at insurance.mo.gov.

New resource from Missouri Department of Insurance makes it easy to create a home inventory

Jefferson City, Mo. – Consumer advocates are encouraging Americans to become consumer savvy during National Consumer Protection Week, and here in Missouri, the Department of Insurance is helping homeowners and renters better protect themselves in the event of damage or theft to their property.

Department Director John M. Huff says consumers should take the time to document their possessions, whether they own or rent their home, so that they can make sure they have the right amount of insurance coverage and so they can more easily file a claim if necessary.

Huff has released a new Home Inventory Checklist, a fill-in-the-blank brochure that allows consumers to list their possessions, from furniture to electronics to tools to clothing.

“With spring and storm season approaching, it’s important to be prepared and have an accurate list of your belongings,” said Huff. “Theft or damage to a home is a traumatic event, and no homeowner in that position needs the added stress of trying to remember and prove what possessions were damaged.”

The department’s checklist walks consumers through their homes room by room, listing living rooms, dining rooms, master bedrooms, children’s bedrooms and even attics and storage areas. Each page lists examples of items that might be found in each room, such as sofas, stereos, DVD players, toys and lawn equipment.

Huff recommends consumers keep as many receipts as possible and store them and the inventory checklist in a safe, fire-proof place. Consumers should update their inventory document any time they add or replace items in their home. They may also choose to create a video or photo inventory.

Consumers can download the brochure at no charge from the department’s Web site, or request a hard copy by e-mailing the department or calling the Insurance Consumer Hotline at 1-800-726-7390.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals.The department’s seven divisions work to maintain consumer confidence by examining and monitoring industries and professions and by establishing coherent and evolving policies.DIFP works to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

Jefferson City, Mo. – Consumers who filed complaints with the Missouri Department of Insurance received a record $14.4 million from their insurance companies in 2009 – a $2 million increase over 2008. The money was returned as a result of the department’s mediation efforts on behalf of consumers who had filed complaints, and that total is the highest ever, according to department records.

The most common reasons for complaints to the department included denial of claims, claims delays, and unsatisfactory offers. The department recorded the most complaints in the following types of insurance: health, auto and homeowners. Some notable accomplishments from the past three months:

After a fire destroyed their house, a family of four was running into trouble getting their homeowners insurance claim paid. The department got involved, and the insurer has now paid more than $900,000 on this claim.
A long-term care insurer attempt to collect an $8,600 from a policyholder who believed she had paid her premiums in full. After receiving her complaint, the department found the company had improperly explained the premiums. The company forgave the bill and stopped the collection attempts.
A homeowners insurance company denied a claim to rebuild a destroyed garage, saying the family had not filed the claim on time. The department’s investigator found the claim was filed on time, but the insurance agent waited to turn it in to the company. The company agreed to pay the $5,500 claim.
“For our economy to grow, Missourians must be sure that proper consumer safeguards are in place. That makes consumer protection vital to our economic success,” Gov. Jay Nixon said. “By recovering more than a million dollars a month for Missouri policyholders, we are assuring citizens that effective help is available to them as our economy recovers.”

For the year, the department fielded more than 4,800 formal complaints and assisted 3,800 consumers in writing and another 27,000 over the telephone. The number of formal complaints is a 20 percent increase over 2008′s total.

The top categories of complaints were as follows:

By reason By line of insurance

Claim denial (1,088 complaints)                                                                                            Health (1,637)

Claim processing delay (775)                                                                                                 Auto (1,104)

Unsatisfactory settlement offer (672)                                                                                Homeowners (625)

Consumers with complaints or questions about their insurance claim or policy provisions can call the Insurance Consumer Hotline at 1-800-726-7390 or file a complaint at insurance.mo.gov.

For further information, contact the communications office at (573) 751-2562.

You can call HPA 816 254 0002 anytime as well to have us assist you with a complete insurance assesment that we have cleverly names PLAN (Pre Loss Assesments Now) This can include an entire pre loss evaluation that gives your real peace of mind, not only that you are properly insured for what your needs are but that you are not paying to much or worse to little when you think that you are right on the money, as well as if you happen to suffer a loss you will have all the information that usually takes time to get, and have HPA on your side ready to go to bat for you. PLAN allows you to see what it would actually take to rebuild your home from the ground up, not for what the market value of your home is but rather the replacment value, because when you have a loss market value good or bad usually has little to no bearing on your claim payout, and in most cases the land value is excluded. So it important to get it right. Your agent probebly would not have a problem with you insuring our home for an extra 50,000 becuase of your land value, if you tell him to. After all it means more commisions.  Our PLAN also includes a very thorough personal property inventory, and if you want we can price it as well. I have never met anyone that has taken a physical inventory themselfs, becuase frankly the though of inventorying all of your personal property and then pricing it is horrifiying.

But rest assured that HPA can ease the pain and help you get your insurance policies in order.

Stephen A. Delgado

Dec 31, 2009

Get your insurance policies and finances in shape for the new year

Thinking ahead to 2010 can mean big goals for many Missourians, whether it’s getting in shape, taking up a new hobby or spending more time with the family. But the Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is encouraging consumers to take a quick look at their finances and insurance policies as the new year begins.

While today’s economy presents challenges for many Missouri families, it also presents opportunities in the form of lower interest rates and more competition among insurance companies and lenders. The DIFP makes these recommendations for consumers as the calendar turns:

· Shop around for car and homeowners insurance. These markets are competitive in Missouri, and consumers should get premium quotes from competing companies every three years or so.

· Ask about discounts on your homeowners and auto insurance policies. Insurers offer discounts for everything from age to claims history to number of smoke detectors to alumni memberships to the type of job you have.

· Insure your home, not your land. Land is normally excluded in homeowners policies so make sure your insurance coverage level is based on the cost of rebuilding your home, rather than the price you paid for the home and land.

· Revisit your deductibles. If they are currently $250, raising them to $500 or $1,000 should cause a noticeable drop in your premiums.

· Make home improvements: Upgrading your electrical, plumbing and heating systems improves safety and reliability of your home, and it may reduce your premiums. Also, you can get federal tax credits for some energy-saving improvements.

· Check to make sure all of your health care providers participate in your insurance plan. Also, make sure you understand your insurance coverage for any anticipated medical procedures.

· Take an inventory of your possessions at home. This gives you a complete and quick list of items in case of theft, fire or other damage. A home inventory checklist is available on the department’s Web site.

· If you’ve had your life insurance policy for several years, talk with your agent or financial adviser to make sure your coverage levels are still appropriate – not too high or too low.

· Review your bank and credit card statements for any automatic withdrawals. It’s easy to authorize monthly bank withdrawals, then forget about them. Make sure you’re not paying for services or products you no longer need or want.

· Consider refinancing your mortgage, or car and other loans. Interest rates are low right now, and you might be able to save considerable money on monthly payments, shorten the length of your loan terms, or both.

· If a certified public accountant (CPA) will be preparing your 2009 income taxes, check with the State Board of Accountancy to ensure he or she is licensed to practice in Missouri. Contact the state board at 573-751-0012 or pr.mo.gov.

“Reviewing all these areas of your financial life is always a good idea every few years, but it’s even more important in today’s challenging economy,” said DIFP Director John M. Huff. “These suggestions could help put more money in your pockets for 2010.”

Consumers with questions or complaints about insurance issues can contact the DIFP’s Insurance Consumer Hotline at 1-800-726-7390 or visit insurance.mo.gov.

For further information, contact: The Public Information Office at (573) 751-2562.

WASHINGTON—Proposed cuts in the crop insurance program are sending alarms through the insurance industry for both underwriters and agents.

Under a proposal unveiled earlier this month, the Obama administration wants new cutbacks in the program that in addition to other recent action, would collectively reduce government involvement in the program by close to 30 percent.

“We definitely cannot live, without a doubt, with what they have suggested,” said Robert Parkerson, president, National Crop Insurance Services, the liaison to the U.S. Department of Agriculture’s Risk Management Agency (RMA). RMA represents the 16 carriers that provide crop insurance to an estimated 270 million acres of all crops grown in the U.S., an estimated 78 percent of all tillable land. The group also helps develop policies, claims procedures, research on new plants and new genetic seed processing for the agriculture industry.

“If this isn’t resolved, we have a tremendous problem on our hands, and so does the nation’s farmers,” Mr. Parkerson added.

Besides the cut in the program subsidy, the RMA is also raising the rates to the NCIS member companies for reinsurance, which could jeopardize the solvency of the 16 NCIS companies that also purchase it on the private market, Mr. Parkerson said.

“The current draft of the standard reinsurance agreement is out of touch with the reality of the costs necessary to keep the FCIP [Federal Crop Insurance Program] a viable safety net for America’s farmers,” added Charles Symington, senior vice president of government affairs for the Independent Insurance Agents and Brokers of America.

Their concerns stem from a proposal made within the last two weeks by the RMA that would cut $4 billion over 5 years in the crop insurance program. Last year, Mr. Parkerson said, crop insurers had a loss ratio of about 88 percent out of $9.8 billion in premiums paid.

According to various officials, the Obama administration wants to use the funding cuts from the crop program to increase the Agriculture department’s child nutrition programs by at least $1 billion a year over the next 5 years.

The child nutrition programs include the school lunch and breakfast programs; the women, infants and children’s special nutrition program, or WIC; and commodity distribution programs.

Another concern is that the administration might be trying to link the nutrition programs to the crop insurance programs, foreshadowing additional cuts, according to congressional staffers and lobbyists. They cannot be directly linked, these officials say, because Congress has no direct control over NCIS member companies.

The new $1 billion annual cut would be in addition to the $6.4 billion cut in the program over 5 years negotiated in the 2008 farm bill, bringing total cuts over the last few years to 27 percent

By ARTHUR D. POSTAL

http://www.property-casualty.com/News/2009/12/Pages/More-Cuts-Proposed-For-Crop-Insurance.aspx

The revelations surrounding Tiger Woods’ infidelities has helped one insurance broker promote a new insurance product aimed at corporations that place a major portion of their branding campaign behind a celebrity figure.

For more than two months, New York-based insurance broker DeWitt Stern has worked on developing a “Reputation Risk Insurance” product for the entertainment, arts and advertising risks in which the firm specializes, explained LeCount Moore, managing director for the firm.

Then on Thanksgiving, Tiger Woods crashed his Cadillac into a tree and a marketing opportunity was born.

On Dec. 14, the company sent out a statement saying that it was introducing its product at the beginning of 2010, citing the Tiger Woods drama and how that can put a company’s marketing campaign in bind.

“It was pure coincidence,” explained Mr. Moore. He said when the scandal broke and Accenture pulled its advertising featuring Tiger Woods, the brokerage realized this was a prime opportunity to take advantage of the situation and announce plans to roll out its product.

However, the reaction to the release was unexpected, he admitted, with scores of press inquiries about the product, including the United Kingdom’s BBC.

DeWitt said its insurance will “protect brands, corporate entities and advertisers against losses incurred from reputational crises,” compensating policyholders “for both the cost of crisis remediation and actual loss of revenue following a public relations crisis.”

With the “viral nature of media today” in a world of instant messaging, texting, YouTube and Twitter, where any news or rumor can spread quickly and damage a company’s reputation, DeWitt felt clients were primed for this kind of coverage.

He said DeWitt is continuing to talk with Lloyd’s to finalize underwriters for the program, with the goal of creating a $50 million facility. The program would also provide risk management solutions to deal with these issues.

Lori Shaw, sports and leisure practice leader for Aon Entertainment Group, part of Chicago-based insurance broker Aon, said that quite a few companies use celebrity endorsements in their advertising, noting that in the United States there are moral clauses in the contract allowing sponsors to break ties with the individual spokesperson should they do something criminal or against public policy.

However, there is usually insurance coverage in place in case of a celebrity spokesperson’s death or disability, allowing the company to recoup costs and expenses for the campaign and launch a new one.

The trickiest part is creating a policy that will protect revenues or profits from the loss of a campaign, said Ms. Shaw. That means being able to show something quantifiable about the campaign and its effects on the company’s business.

“Sometimes the [client] believes it’s a better idea to bear that risk than to transfer that risk because of the perceived cost,” Ms. Shaw noted.

Bill Harrison, managing director of Aon’s crisis management practice, advised that the best strategy for any company, when a celebrity causes an embarrassing situation, is to cut ties early before there is reputational damage to the sponsors.

This appears to be the motivation behind Accenture’s response to the Tiger Woods debacle. He said that Accenture—a consulting firm formerly known as Arthur Anderson–indicated its client base had not yet been damaged by the affiliation and it wanted to make sure there was no such impact going forward.

“It’s not a huge insurable risk from a corporation’s point of view because they can just get rid of the person,” he said.

As for whether Mr. Woods has any coverage for the loss of his sponsors, none of the brokers were aware of any such policies in place. However, they did note that insurance coverage for harm done to a company because of the adverse behavior of a celebrity is popular in Europe.

Mr. Moore said he believes it will just be a matter of time before these types of coverages gain traction in the United States

MARK E. RUQUET

http://www.property-casualty.com/News/2009/12/Pages/Woods-Brand-Helps-Push-Brokers-New-Product.aspx

Jefferson City, Mo. – More than 300,000 current and former policyholders of General American Life Insurance Co. will soon receive $75 million in distribution payments. The checks are being sent between now and early December. In 1999, the Missouri Department of Insurance went to court to put General American’s parent company, General American Mutual Holding Co., into receivership. State regulators use the receivership process to shut down failing insurance companies and pay claims.

This is the fourth distribution to policyholders since the company went into receivership. General American was a mutual insurance company, which means it was owned by its policyholders.

“When an insurer fails, the state doesn’t simply shut down the company and close the doors,” said John M. Huff, director of the Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP). “There is a rigorous and often complicated process for calculating the debts owed to policyholders and the assets available to pay those debts. With today’s announcement, we are making more progress toward fulfilling that obligation.”

The Department of Insurance continues to seek to increase the remaining assets of General American in order to pay outstanding obligations. In May Director Huff, as receiver, filed a $3 billion lawsuit against the law firm of Dewey LeBoeuf in New York City, which represented General American in the late 1990s.

When an insurer is financially impaired or asks to be dissolved, the director of the Department of Insurance may ask to be appointed receiver by a circuit court judge. The company is then placed into receivership, and the department takes control of the insurer and administers its property and operations for the benefit of policyholders, creditors and owners.

General American Mutual Holding Co. is one of 11 insurance receiverships in Missouri, with the most recent coming in July 2008. All are under the oversight of the Department of Insurance, whose receivership section enforces Sections 375.1150 to 375.1246 of the Missouri statutes.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration
The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department’s seven divisions work to maintain consumer confidence by examining and monitoring industries and professions and by establishing coherent and evolving policies. DIFP works to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

For further information, contact: The Public Information Office at (573) 751-2562.

http://insurance.mo.gov/cgi-bin/news/news2.cgi?newsid=EkVApAEAkpjqcYVylm

Jefferson City, Mo. – Consumers who filed complaints with the Missouri Department of Insurance received almost $10.7 million from insurance companies during the first nine months of 2009. The money was returned as a result of the department’s mediation efforts on behalf of consumers who had filed complaints.

The most common reasons for complaints to the department included denial of claims, claims delays, and unsatisfactory offers.  The department recorded the most complaints in the following types of insurance: auto, group health, individual health and homeowners.  Some notable accomplishments from the past three months:

•        Earlier this year a family of nine from southwest Missouri filed a complaint against their homeowners insurance company regarding a tornado loss that left them in a hotel room for over a month. After the department’s involvement, the family received a final recovery from the insurer of nearly $278,000.

•        After being denied coverage for treatment of lymphoma, a consumer filed a complaint with the department. After mediation by the department, the insurance company overturned the denial and approved the procedure, which cost more than $250,000.

•         After purchasing life insurance with the proceeds of her late husband’s life policy, a consumer complained that her new policy did not include the benefits she had been promised. After the department’s involvement, the consumer’s policy was re-written and her insurance company returned $109,846 to her.

“We work to ensure Missourians are treated fairly by insurance companies.  Our team takes each and every complaint seriously,” said John M. Huff, director of the Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP). “Returning almost $11 million to policyholders is a significant demonstration of our commitment to protecting Missouri consumers.”

In the first nine months of 2009, the department fielded almost 4,200 formal complaints and assisted nearly 3,000 consumers in writing and another 21,000 over the telephone. The top categories of complaints were as follows:

Consumers with questions about their insurance claim or policy provisions can call the Insurance Consumer Hotline at 1-800-726-7390 or file a complaint at insurance.mo.gov.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals.  The department’s seven divisions work to maintain consumer confidence by examining and monitoring industries and professions and by establishing coherent and evolving policies.  DIFP works to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

For further information, contact: The Public Information Office at (573) 751-2562.

http://insurance.mo.gov/cgi-bin/news/news2.cgi?newsid=EkVVuVlkVZejzNlHbf