Farmer Insurance - Don't Bet the Farm, Shield Yourself by Brooke Hayles
Farming is a massive operation. Having farmer insurance is most necessary when you consider all the risk involved in owning and running a farm. Farm insurance can help protect you from the loss of a bad crop or the unforeseen disaster of the loss of a heard. Tragedy strikes at inconvenient times, but thankfully there is protection available.
Regardless of whether you inherited your farming business through your family, or decided to take the plunge and start a farm, the costs involved are enormous and the loss of a crop due to frost or hail can be devastating. Farmer insurance acts as protection against complete financial ruin if the unforeseen happens. Not only are crops and animals at risk, but the equipment needed for operation is also very costly. The term 'farming' encompasses many types of farm operation; thankfully there is farmer insurance available for each source of revenue.
Farmer insurance covers many potential incidents. Not only does it cover many accidents that may occur on the farm, but it guards against possible litigation. For instance, a consumer could purchase a jar of your jam, get ill and then decide to sue your business. Farmer insurance not only helps cover you in this instance, but will represent you in court if need be. A common policy coverage also involves accidents while operating your farm equipment or performing farming duties. When you stop to think about it, there truly are many ways that a farm is endangered to liability.
Available Farmer Insurance
Before choosing farmer insurance there are factors that must be considered. The most important issue is the type of farm that you operate. Also, how is business commenced? It may be best to write a list and include how many people you employ, the amount and types of equipment that need to be insured and possible liabilities that worry you. The following is a general list of items that need to be insured when operating a farmer.
Crop Insurance: Crop-yield and crop revenue are big concerns to farmers. Since the outcome of the crop determines the livelihood of the entire farm, coverage for the crop is paramount. Farmer insurance generally covers loss due to natural causes. This may include bugs, pests and hazardous weather.
Farm Contents: Most farm equipment is quite costly and can run into the hundreds of thousands. You will want insurance that lists specific equipment individually and provides comprehensive coverage for your equipment. Some policies also cover loss of livestock because of electrocution.
Theft: Theft coverage is not limited to stolen machinery. Often time's theft on a farm involves livestock including cows, sheep, goats and hogs.
Employers Liability Insurance: If a farmer has one employee, he or she will need liability insurance. The employee needs not to be full-time, they can be an occasional work-hand, but accidents happen and this insurance will cover many potential liabilities.
Fatal Injury of Livestock: Many companies offer farmer insurance that covers the loss of an animal either while on the farm or even while in transit. If an animal dies coverage generally is available for a maximum amount per animal and a maximum per accident. Even working dogs, such as herding dogs, may be covered if fatally injured.
Sheep Coverage: This item helps to cover veterinary bills and loss of sheep due to injury or death.
Business Disruption: Farmer insurance will help protect a farmer when business costs either increase dramatically or profits are suddenly down due to unforeseen incidents.
Shipment of Goods: Your strawberries are safely on their way to market and boom, they're gone. A loss of income due to crop damage while in transit is protected with this coverage. Loss of livestock is not covered under this coverage since animals are covered separately.
Personal Accident Coverage: If an accident that leads to injury occurs on a farm, this coverage protects against this. As a farmer you are entitled to a settlement if an injury occurs that effects your ability to run the farm as needed.
Personal House and Contents: The farmer's residence and any additional buildings are covered. If specifically stated, the contents of the home may also be covered.
Summary:
When the protection of farm equipment, livestock and crops are in question, Farmer insurance must be purchased. Farmer insurance will safeguard against financial ruin due to unforeseen occurrences. Common coverage includes loss of income due to theft, crop failure and the death of livestock. A farmer's personal home and contents are often included with this insurance. Farming is an important line of work and there is insurance available to help protect not only the farm, but the owner.
Brooke Hayles
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Article Source: ArticleBazaar.net
Wednesday, May 9, 2007
Monday, May 7, 2007
Should Medical Students Consider Disability Insurance?
Should Medical Students Consider Disability Insurance? by Andy Puls
Last year the Association of American Medical Colleges (AAMC) said that schools should require disability insurance for all medical students and provide access to policies. Medical students are particularly vulnerable to the financial hardships that may result from a disability. Disability insurance protects students from possible fiscal disaster and is also a prudent investment. Purchasing a policy while still in medical school presents tremendous advantages that can save students money after graduation, while protecting their financial future and providing the peace of mind necessary to focus on the demands of a career in medicine.
Most medical students do not generate income while in school, but instead accumulate debt at staggering rates. In 2005, medical school graduates who took out loans started their residencies with an average debt of $100,000, a figure that does not include undergraduate debt. Only the expected future income from a career in medicine makes such exorbitant debt palatable; however, a student that suffers a disability may never realize that income. According to the 1994 Statistical Abstract of the United States, in the course of a year, 1 in 10 people between the ages of 25 and 64 will suffer a disability. When comparing that ratio to the odds of being victim of a house fire (1 in 122); injured in an automobile accident (1 in 160); or even of death (1 in 117), the value and protection offered by disability insurance is clear.
A student who suffers a disability and is unable to complete their education will be saddled with student loan debt and may not be able to work in any field depending on the disability and its severity. Repayment of student loans combined with medical expenses and lack of income due to disability can destroy a financial future. Even a student that is able to continue medical school could face the burden of simultaneously repaying loans and paying tuition.
Aside from the obvious advantages disability insurance offers by minimizing the risk riding behind a medical student’s debt, there are other long-term advantages to purchasing a policy as a student instead of as a physician. A student purchasing a policy will likely get a lower rate than a physician. According to doctordisability.com, three factors determine disability insurance rates: age at the time of purchase, occupation, and health status. These factors tend to favor a student. Not only are students younger, but generally the health status of younger people is better than that of older people. Obtaining insurance at a younger age may also protect the policyholder from the difficulties of securing a policy later in life when other health issues may affect insurability.
A disability insurance policy also adapts to meet the changing needs of the insured. A Future Increase Option (FIO) Rider allows the policyholder optional future increases in coverage without providing evidence of medical insurability. The ability to increase coverage regardless of current health status is attractive to any policyholder, but the FIO Rider is also ideal for a student who wants to increase coverage upon graduation and the expectation of significant income. A policy purchased by a student before they take their first class in medical school can be flexible enough to last a career.
The protection, flexibility, and benefits the insured has by purchasing a disability insurance policy as a student are reflected by the stance that medical schools take. Dartmouth Medical School and the University of North Carolina School of Medicine mandate that all students have disability insurance. While in some states it is illegal to require students to have a disability insurance policy, most medical schools at least recommend that all their students have it. In 2006, the University of Washington School of Medicine was ranked by U.S. News and World Report as one of only three schools in the top 10 for both research and primary care. Their office of student affairs and services says it is “advisable” to have disability insurance in light of the cost of education and risks associated with practicing medicine. The school offers its students a plan, but in general, group plans come with limitations and restrictions.
The Liaison Committee on Medical Education (LCME) is the sole accrediting authority for medical education programs leading to the M.D. degree in the United States. Accreditation standard MS-28 states, “all students must have access to disability insurance.” Simply allowing access to disability insurance—a minimal requirement placed on accredited medical schools—or even recommending it, is not enough to save students from the risks of not protecting their future income. In light of the monetary investment that students make to medical schools, it should be the responsibility of each school to promote and educate its students about the benefits, value, and importance of disability insurance.
Andy Puls is a freelance writer for Doctor Disability Insurance. For More information, visit Physician Disability
Article Source: ArticleBazaar.net
Last year the Association of American Medical Colleges (AAMC) said that schools should require disability insurance for all medical students and provide access to policies. Medical students are particularly vulnerable to the financial hardships that may result from a disability. Disability insurance protects students from possible fiscal disaster and is also a prudent investment. Purchasing a policy while still in medical school presents tremendous advantages that can save students money after graduation, while protecting their financial future and providing the peace of mind necessary to focus on the demands of a career in medicine.
Most medical students do not generate income while in school, but instead accumulate debt at staggering rates. In 2005, medical school graduates who took out loans started their residencies with an average debt of $100,000, a figure that does not include undergraduate debt. Only the expected future income from a career in medicine makes such exorbitant debt palatable; however, a student that suffers a disability may never realize that income. According to the 1994 Statistical Abstract of the United States, in the course of a year, 1 in 10 people between the ages of 25 and 64 will suffer a disability. When comparing that ratio to the odds of being victim of a house fire (1 in 122); injured in an automobile accident (1 in 160); or even of death (1 in 117), the value and protection offered by disability insurance is clear.
A student who suffers a disability and is unable to complete their education will be saddled with student loan debt and may not be able to work in any field depending on the disability and its severity. Repayment of student loans combined with medical expenses and lack of income due to disability can destroy a financial future. Even a student that is able to continue medical school could face the burden of simultaneously repaying loans and paying tuition.
Aside from the obvious advantages disability insurance offers by minimizing the risk riding behind a medical student’s debt, there are other long-term advantages to purchasing a policy as a student instead of as a physician. A student purchasing a policy will likely get a lower rate than a physician. According to doctordisability.com, three factors determine disability insurance rates: age at the time of purchase, occupation, and health status. These factors tend to favor a student. Not only are students younger, but generally the health status of younger people is better than that of older people. Obtaining insurance at a younger age may also protect the policyholder from the difficulties of securing a policy later in life when other health issues may affect insurability.
A disability insurance policy also adapts to meet the changing needs of the insured. A Future Increase Option (FIO) Rider allows the policyholder optional future increases in coverage without providing evidence of medical insurability. The ability to increase coverage regardless of current health status is attractive to any policyholder, but the FIO Rider is also ideal for a student who wants to increase coverage upon graduation and the expectation of significant income. A policy purchased by a student before they take their first class in medical school can be flexible enough to last a career.
The protection, flexibility, and benefits the insured has by purchasing a disability insurance policy as a student are reflected by the stance that medical schools take. Dartmouth Medical School and the University of North Carolina School of Medicine mandate that all students have disability insurance. While in some states it is illegal to require students to have a disability insurance policy, most medical schools at least recommend that all their students have it. In 2006, the University of Washington School of Medicine was ranked by U.S. News and World Report as one of only three schools in the top 10 for both research and primary care. Their office of student affairs and services says it is “advisable” to have disability insurance in light of the cost of education and risks associated with practicing medicine. The school offers its students a plan, but in general, group plans come with limitations and restrictions.
The Liaison Committee on Medical Education (LCME) is the sole accrediting authority for medical education programs leading to the M.D. degree in the United States. Accreditation standard MS-28 states, “all students must have access to disability insurance.” Simply allowing access to disability insurance—a minimal requirement placed on accredited medical schools—or even recommending it, is not enough to save students from the risks of not protecting their future income. In light of the monetary investment that students make to medical schools, it should be the responsibility of each school to promote and educate its students about the benefits, value, and importance of disability insurance.
Andy Puls is a freelance writer for Doctor Disability Insurance. For More information, visit Physician Disability
Article Source: ArticleBazaar.net
Sunday, May 6, 2007
How To Protect Your Family Finances With A Life Insurance Policy
How To Protect Your Family Finances With A Life Insurance Policy by Simon Christopher
A simple term life insurance policy is one of the most effective ways to protect your family and financial dependents against the premature death of the main breadwinner.
Like any insurance, price tends to drive the purchase of life cover before the quality of a policy and its ultimate suitability are considered. But focusing too much on the monthly cost is not always the best way to measure good value cover.
A good example of this is often found when buying term life insurance which provides a number of policy options including two types of premium, guaranteed or reviewable. Guaranteed premiums are, as the name suggests, fixed and guaranteed by the insurance company not to increase. Whereas, reviewable premiums are subject to regular reviews, usually every five years and can be increased at the insurer’s discretion. Yes, guaranteed premiums are more expensive than reviewable rates but they should be seriously considered, especially if you intend to take out a policy for ten years or more. This is because the amount of each potential premium review increase is likely to rise the older you get.
In reality, a more accurate guide to the best value cover is to match the right policy to your need for protection. Another good example is the popularity of lump sum cover when applying for a life insurance policy for family protection. A lump sum plan is fine if you need to provide large sums to pay off debts such as a mortgage. True family protection is more about ensuring that an income is provided to replace that lost on the death of the main income earner. When a lump sum policy is used for family protection the potential problem is how to generate the required income from the lump sum. Where should it be invested for maximum return and will the income generated be subject to tax? Plus will it be sufficient to meet the financial needs of the surviving dependants?
In many cases, a more suitable solution is protection that’s designed to pay a regular income to the end of the required term. Also known as Family Income Benefit this cover has many advantages over it's lump sum alternative. One of it's major pluses is that it’s usually cheaper than a like for like lump sum policy as the risk to the insurance company decreases over the policy term. For example, a 20 year level term assurance plan for £100,000 will cost the insurance company £100,000 if a claim is paid at any time up until the end of the policy term.
Compare this to a Family Income Benefit policy providing an annual income benefit of £10,000 over the same 20 year term which could potentially cost the insurer £200,000 if a claim was made shortly after inception. In practice this is unlikely so the risk to the insurer decreases with each year the policy remains in force. If a claim was made at year 10 the insurer would have to pay the annual income for the next 10 years at a lower cost of £100,000.
Another feature of Family Income Benefit is that the annual income can be paid on an increasing or indexed basis if selected from inception. The effect of this option is that the real value of the cover is maintained and not eroded by inflation over time.
So overall, Family Income Benefit can be an almost perfect solution to protecting your dependents financially from the premature death of a vital family breadwinner. Not only is it often the cheapest form of family protection but also currently provides the annual income benefit totally free of tax.
To Summarise:-
•If you can afford it, choose guaranteed premiums
•Consider if an income benefit would be more suitable
© Copyright 2006 Life Saver. All rights reserved. Life Saver provides instant online life insurance quotes comparing discount term life insurance premiums from nineteen UK life insurers.
Article Source: ArticleBazaar.net
A simple term life insurance policy is one of the most effective ways to protect your family and financial dependents against the premature death of the main breadwinner.
Like any insurance, price tends to drive the purchase of life cover before the quality of a policy and its ultimate suitability are considered. But focusing too much on the monthly cost is not always the best way to measure good value cover.
A good example of this is often found when buying term life insurance which provides a number of policy options including two types of premium, guaranteed or reviewable. Guaranteed premiums are, as the name suggests, fixed and guaranteed by the insurance company not to increase. Whereas, reviewable premiums are subject to regular reviews, usually every five years and can be increased at the insurer’s discretion. Yes, guaranteed premiums are more expensive than reviewable rates but they should be seriously considered, especially if you intend to take out a policy for ten years or more. This is because the amount of each potential premium review increase is likely to rise the older you get.
In reality, a more accurate guide to the best value cover is to match the right policy to your need for protection. Another good example is the popularity of lump sum cover when applying for a life insurance policy for family protection. A lump sum plan is fine if you need to provide large sums to pay off debts such as a mortgage. True family protection is more about ensuring that an income is provided to replace that lost on the death of the main income earner. When a lump sum policy is used for family protection the potential problem is how to generate the required income from the lump sum. Where should it be invested for maximum return and will the income generated be subject to tax? Plus will it be sufficient to meet the financial needs of the surviving dependants?
In many cases, a more suitable solution is protection that’s designed to pay a regular income to the end of the required term. Also known as Family Income Benefit this cover has many advantages over it's lump sum alternative. One of it's major pluses is that it’s usually cheaper than a like for like lump sum policy as the risk to the insurance company decreases over the policy term. For example, a 20 year level term assurance plan for £100,000 will cost the insurance company £100,000 if a claim is paid at any time up until the end of the policy term.
Compare this to a Family Income Benefit policy providing an annual income benefit of £10,000 over the same 20 year term which could potentially cost the insurer £200,000 if a claim was made shortly after inception. In practice this is unlikely so the risk to the insurer decreases with each year the policy remains in force. If a claim was made at year 10 the insurer would have to pay the annual income for the next 10 years at a lower cost of £100,000.
Another feature of Family Income Benefit is that the annual income can be paid on an increasing or indexed basis if selected from inception. The effect of this option is that the real value of the cover is maintained and not eroded by inflation over time.
So overall, Family Income Benefit can be an almost perfect solution to protecting your dependents financially from the premature death of a vital family breadwinner. Not only is it often the cheapest form of family protection but also currently provides the annual income benefit totally free of tax.
To Summarise:-
•If you can afford it, choose guaranteed premiums
•Consider if an income benefit would be more suitable
© Copyright 2006 Life Saver. All rights reserved. Life Saver provides instant online life insurance quotes comparing discount term life insurance premiums from nineteen UK life insurers.
Article Source: ArticleBazaar.net
Saturday, May 5, 2007
Travel Insurance for Cruising Or Other Adventures, Yes or No?
Travel Insurance for Cruising Or Other Adventures, Yes or No? by Mary Hanna
Travel insurance for your cruise vacation is an optional expense. The cruise lines will offer you an insurance policy but it will usually be more expensive than other outlets. Your travel agent should know all the options that are available to choose from. Included here are some tips on how to obtain insurance, why you need it and the way to collect on your insurance if you have a claim.
I recommend spending the extra money on insurance. You never know what will happen since in most cases you have booked you cruise months in advance. You may arrive at your destination feeling fine and a couple of days later fall sick or sustain an injury.
For example, on one trip we took to London, I became extremely ill. Because we had the insurance we were able to get a doctor to our hotel room within an hour. All we had to do was call an 800 number in the Unites States and they took care of the rest of the arrangements, and this was on Christmas Eve! To say the least, this was a huge relief since we were in a foreign country and didn’t know anything about their medical facilities. Because we had purchased the trip insurance we got immediate medical care and we were reimbursed by the insurance company for all out our of pocket expenses when we returned home.
We’ve been on many trips where people have sustained broken bones. Usually it was due to their own foolishness, but since they had the trip insurance they were covered. This especially becomes an issue if you have to be airlifted to the nearest medical center. On a cruise we took through the Baltic Sea, a woman suffered a stomach aneurysm and had to be taken by helicopter to a medical trauma center in Norway. I don’t know if she had the insurance but I sure hope so. After experiencing things like these you can see why I recommend taking out a trip insurance policy.
Understand that the ships do have doctors, nurses and infirmaries. But they are only for the non emergency medical procedures like a cold or flu. They also have set up emergency medical contacts in all the destinations in case a situation is beyond their capabilities. They even have recommended dentists in each port of call.
If you do have a problem, keep all receipts from any incident and when you get home make copies, and then send the originals to the insurance company. Your health care carrier in the United States does not always cover you once you leave the country. I know for a fact that Blue Cross and Blue Shield do not.
Read the fine lines carefully. Good trip insurance will cover trip cancellation, trip delay, medical, accident, emergency evacuation, or default by the cruise lines. Although default is a remote possibility, it has happened and by having the insurance cover all of the above, you will be stress free. (Default means the cruise company abruptly goes out of business while you are on the cruise or declares bankruptcy before you take your cruise.)
There a few things that you should know about when taking out trip insurance. If you are a mature traveler make sure the insurance covers pre-existing conditions. There may be times when an airline delay can cause you to miss your ship. The insurance should pay to get you to the next port so you can board the ship at that destination. Anything could happen and with trip insurance you are prepared. I cannot stress enough to read the fine print before you purchase trip insurance from any company, be it private or from the cruise lines.
Put the copies of the receipts that you send to the insurance company in your date book about a month out from the date you sent them to the Insurer. If you have not heard anything by that time, call them. They are notorious at dragging their feet. You will get it, but it might take time and a little bit of persistence.
To get more information on Travel Insurance Companies, email me at the address below.
Follow these suggestions and you will have a stress free cruise knowing that you are covered for all eventualities.
Copyright © 2006 Mary Hanna All Rights Reserved.
This article may be distributed freely on your website and in your ezines, as long as this entire article, copyright notice, links and the resource box are unchanged.
Mary Hanna has cruised the world on almost all of the top cruise lines. After over 60 cruises she has decided to compile her expertise into an e-Book for either first time or seasoned cruisers. Mary has written other eBooks, Software Reviews (for people who are technically challenged like her) and Practical Articles on Internet Marketing, Cruising, Gardening and Cooking. Visit her websites at: http://www.CruiseGold.com, http://www.WebMarketingReviews.com, http://www.CruiseravelDirectory.com or contact her at mhanna@cruisepublishing.com
Article Source: ArticleBazaar.net
Travel insurance for your cruise vacation is an optional expense. The cruise lines will offer you an insurance policy but it will usually be more expensive than other outlets. Your travel agent should know all the options that are available to choose from. Included here are some tips on how to obtain insurance, why you need it and the way to collect on your insurance if you have a claim.
I recommend spending the extra money on insurance. You never know what will happen since in most cases you have booked you cruise months in advance. You may arrive at your destination feeling fine and a couple of days later fall sick or sustain an injury.
For example, on one trip we took to London, I became extremely ill. Because we had the insurance we were able to get a doctor to our hotel room within an hour. All we had to do was call an 800 number in the Unites States and they took care of the rest of the arrangements, and this was on Christmas Eve! To say the least, this was a huge relief since we were in a foreign country and didn’t know anything about their medical facilities. Because we had purchased the trip insurance we got immediate medical care and we were reimbursed by the insurance company for all out our of pocket expenses when we returned home.
We’ve been on many trips where people have sustained broken bones. Usually it was due to their own foolishness, but since they had the trip insurance they were covered. This especially becomes an issue if you have to be airlifted to the nearest medical center. On a cruise we took through the Baltic Sea, a woman suffered a stomach aneurysm and had to be taken by helicopter to a medical trauma center in Norway. I don’t know if she had the insurance but I sure hope so. After experiencing things like these you can see why I recommend taking out a trip insurance policy.
Understand that the ships do have doctors, nurses and infirmaries. But they are only for the non emergency medical procedures like a cold or flu. They also have set up emergency medical contacts in all the destinations in case a situation is beyond their capabilities. They even have recommended dentists in each port of call.
If you do have a problem, keep all receipts from any incident and when you get home make copies, and then send the originals to the insurance company. Your health care carrier in the United States does not always cover you once you leave the country. I know for a fact that Blue Cross and Blue Shield do not.
Read the fine lines carefully. Good trip insurance will cover trip cancellation, trip delay, medical, accident, emergency evacuation, or default by the cruise lines. Although default is a remote possibility, it has happened and by having the insurance cover all of the above, you will be stress free. (Default means the cruise company abruptly goes out of business while you are on the cruise or declares bankruptcy before you take your cruise.)
There a few things that you should know about when taking out trip insurance. If you are a mature traveler make sure the insurance covers pre-existing conditions. There may be times when an airline delay can cause you to miss your ship. The insurance should pay to get you to the next port so you can board the ship at that destination. Anything could happen and with trip insurance you are prepared. I cannot stress enough to read the fine print before you purchase trip insurance from any company, be it private or from the cruise lines.
Put the copies of the receipts that you send to the insurance company in your date book about a month out from the date you sent them to the Insurer. If you have not heard anything by that time, call them. They are notorious at dragging their feet. You will get it, but it might take time and a little bit of persistence.
To get more information on Travel Insurance Companies, email me at the address below.
Follow these suggestions and you will have a stress free cruise knowing that you are covered for all eventualities.
Copyright © 2006 Mary Hanna All Rights Reserved.
This article may be distributed freely on your website and in your ezines, as long as this entire article, copyright notice, links and the resource box are unchanged.
Mary Hanna has cruised the world on almost all of the top cruise lines. After over 60 cruises she has decided to compile her expertise into an e-Book for either first time or seasoned cruisers. Mary has written other eBooks, Software Reviews (for people who are technically challenged like her) and Practical Articles on Internet Marketing, Cruising, Gardening and Cooking. Visit her websites at: http://www.CruiseGold.com, http://www.WebMarketingReviews.com, http://www.CruiseravelDirectory.com or contact her at mhanna@cruisepublishing.com
Article Source: ArticleBazaar.net
Friday, May 4, 2007
Dirty Little Secret of Workers Compensation Insurance
Dirty Little Secret of Workers Compensation Insurance by Charles J. Read
Workers Compensation Insurance agents are paid commission based on the size of your company premium. The bigger the premium you pay the bigger your agent's commission. Your agent may never cause your premium to go up unnecessarily but has he done everything he can to reduce it and reduce his commission?
The first workers compensation law was enacted in the United States in 1911 by the State of Wisconsin. By 1948, every state had some form of "workman's comp." Basically this is a government mandated social insurance pact between employers and employees. Employers are forced to cover medical care and provide wage replacement for employees hurt on the job: in return workers compensation benefits becomes the only remedy available for workers. Even though courts have upheld this concept for almost one hundred years occasionally in cases of bad faith courts have over ridden this exclusive remedy.
Workers compensation is compulsory insurance in every state but Texas. With some few exceptions, all employers are mandated by law to carry workers compensation insurance.
Workers Compensation Insurance premium is calculated by how employees are classified by their specific work and the rate assigned to each employee classification.
Workers Compensation insurers attach a premium rate to each employee classification code. These rates must normally be approved by the state insurance regulatory agency in the state the policy is in effect in. Agency approval of the rate is based on numerous items. One of the items taken into account is adequacy of the rate. Rates must be adequate to maintain the financial condition of an insurance company. Adequate rates allow the insurance company to maintain surplus to meet current and future claims..
The classification code and its corresponding premium rate are part of the formula. The premium rate itself is expressed as dollars and cents per $100 dollars of payroll. The payroll for each classification code is estimated and then each $100 is multiplied by the rate. The calculated amount is the base premium. The base premium is then modified (change up or down) using rating plans and experience modification.
The experience modification is calculated from losses that the company has reported in the past.
The insurance company used a government-approved formula to calculate an experience modification for each employer. The formula looks at paid losses, reserves necessary for claim made and payroll amounts for the past three years (usually). The experience modification shows average loss experience of employers with similar classified employees and works as a way to compare employers. The experience modification is added to the class rate, along with any other modifications and an estimated premium rate is created. This is called prospective rating and is the most commonly utilized rate plan.
The total premium for a workers compensation insurance policy is not certain until the policy period is complete and all payroll has been reported.
Now you know how the rates are calculated what is the "Dirty Little Secret"? In thirty years of working with companies I have never gone into a company of any size and found that its employees are correctly classified. The classification process is many times as much of an art as it is a science. Different people can look at the same job and classify it differently sometimes with extremely different results to the premium. Many classification titles are very similar but with much different rates. There are many jobs that don't have a specific classification but have to be fitted into something that makes sense. If the insurance company decides the classification do you think it will be the best possible choice for the employers lowest premium?
If an employer is not only knowledgeable but also aggressive about classifications who is going to see to it that they are the lowest possible premium rates. The insurance company makes more money out of higher premium rate classifications. The risk to the insurance company does not rise if the employee is misclassify into a classification that commands a premium rate of say $10.13 per $100 of payroll as say a rate of $1.01 per $100 of payroll. The insurance company just makes ten times as much revenue. If there is a claim it will be paid at the same amount regardless of what the premium was.
The insurance agent that supposedly has the employer's interest at heart makes ten times the commission if an employee is misrated as in the paragraph above. Is he going to take his time, energy and effort to deliberately cut his commissions by suggesting rate changes over his company's objection?
If as an employer you don't have an intimate knowledge of classification and ratings you need to either get the knowledge or hire someone who has it. You can't trust your agent to be objective about this. You are talking about taking money out of his pocket and out of the pocket of people that pay him. You don't pay him the insurance company does. It pays him a commission on what he sells you. Not necessarily on what you need. Your agent may be doing a bang up job but wouldn't you like to be sure?
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice.
Mr. Read is the author of “How to Start a New Business.”
To find professional payroll service at a budget price go to www.PayrollonaBudget.com a paperless payroll company.
For a full service payroll bureau with CPA’s on staff visit www.CustomPayroll.com .
See an excerpt of Mr. Read’s interviews from William Shatners “Heartbeat of America” television show on the web sites linked above.
Article Source: ArticleBazaar.net
Workers Compensation Insurance agents are paid commission based on the size of your company premium. The bigger the premium you pay the bigger your agent's commission. Your agent may never cause your premium to go up unnecessarily but has he done everything he can to reduce it and reduce his commission?
The first workers compensation law was enacted in the United States in 1911 by the State of Wisconsin. By 1948, every state had some form of "workman's comp." Basically this is a government mandated social insurance pact between employers and employees. Employers are forced to cover medical care and provide wage replacement for employees hurt on the job: in return workers compensation benefits becomes the only remedy available for workers. Even though courts have upheld this concept for almost one hundred years occasionally in cases of bad faith courts have over ridden this exclusive remedy.
Workers compensation is compulsory insurance in every state but Texas. With some few exceptions, all employers are mandated by law to carry workers compensation insurance.
Workers Compensation Insurance premium is calculated by how employees are classified by their specific work and the rate assigned to each employee classification.
Workers Compensation insurers attach a premium rate to each employee classification code. These rates must normally be approved by the state insurance regulatory agency in the state the policy is in effect in. Agency approval of the rate is based on numerous items. One of the items taken into account is adequacy of the rate. Rates must be adequate to maintain the financial condition of an insurance company. Adequate rates allow the insurance company to maintain surplus to meet current and future claims..
The classification code and its corresponding premium rate are part of the formula. The premium rate itself is expressed as dollars and cents per $100 dollars of payroll. The payroll for each classification code is estimated and then each $100 is multiplied by the rate. The calculated amount is the base premium. The base premium is then modified (change up or down) using rating plans and experience modification.
The experience modification is calculated from losses that the company has reported in the past.
The insurance company used a government-approved formula to calculate an experience modification for each employer. The formula looks at paid losses, reserves necessary for claim made and payroll amounts for the past three years (usually). The experience modification shows average loss experience of employers with similar classified employees and works as a way to compare employers. The experience modification is added to the class rate, along with any other modifications and an estimated premium rate is created. This is called prospective rating and is the most commonly utilized rate plan.
The total premium for a workers compensation insurance policy is not certain until the policy period is complete and all payroll has been reported.
Now you know how the rates are calculated what is the "Dirty Little Secret"? In thirty years of working with companies I have never gone into a company of any size and found that its employees are correctly classified. The classification process is many times as much of an art as it is a science. Different people can look at the same job and classify it differently sometimes with extremely different results to the premium. Many classification titles are very similar but with much different rates. There are many jobs that don't have a specific classification but have to be fitted into something that makes sense. If the insurance company decides the classification do you think it will be the best possible choice for the employers lowest premium?
If an employer is not only knowledgeable but also aggressive about classifications who is going to see to it that they are the lowest possible premium rates. The insurance company makes more money out of higher premium rate classifications. The risk to the insurance company does not rise if the employee is misclassify into a classification that commands a premium rate of say $10.13 per $100 of payroll as say a rate of $1.01 per $100 of payroll. The insurance company just makes ten times as much revenue. If there is a claim it will be paid at the same amount regardless of what the premium was.
The insurance agent that supposedly has the employer's interest at heart makes ten times the commission if an employee is misrated as in the paragraph above. Is he going to take his time, energy and effort to deliberately cut his commissions by suggesting rate changes over his company's objection?
If as an employer you don't have an intimate knowledge of classification and ratings you need to either get the knowledge or hire someone who has it. You can't trust your agent to be objective about this. You are talking about taking money out of his pocket and out of the pocket of people that pay him. You don't pay him the insurance company does. It pays him a commission on what he sells you. Not necessarily on what you need. Your agent may be doing a bang up job but wouldn't you like to be sure?
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice.
Mr. Read is the author of “How to Start a New Business.”
To find professional payroll service at a budget price go to www.PayrollonaBudget.com a paperless payroll company.
For a full service payroll bureau with CPA’s on staff visit www.CustomPayroll.com .
See an excerpt of Mr. Read’s interviews from William Shatners “Heartbeat of America” television show on the web sites linked above.
Article Source: ArticleBazaar.net
Thursday, May 3, 2007
Long Term Care Insurance: Who to Trust?
Long Term Care Insurance: Who to Trust? by Clay Cotton
A contract is a contract, and a long term care insurance company has the right and responsibility to follow it's policy's wording to the letter. Buyers BEWARE! Companies can "interpret" vague wording in their favor. So, it's a very good idea to enlist the expertise of an insurance coverage contract lawyer in the very beginning, rather than waiting until being denied. Just know that lawyers are pricey, so be prepared to spend some extra cash for this last step.
Unless you are well versed in contract law and know the in's and out's of the insurance industry's language, do not supposed that you are smarter than your long term care insurance company's lawyers. Make sure you know what you are buying.
Checking policy wording with a contract lawyer who knows the long term care insurance lingo while also making sure you have a competent and compassionate long term care insurance broker in your corner is the best of both worlds.
Brokers can be very helpful, as long as they are consumer-focused, however they are not trained in law. Even Clay's long term care insurance mentor/trainer, who had years of experience, was caught unaware a few times. After believing a policy's wording meant that it promised coverage under certain circumstances, Charlie was devastated and infuriated to learn that a client's claim was questioned. Charlie wasn't a lawyer, and in good faith he believed what the insurance company had alluded to during his training. Maybe he was too trusting. His training was about sales, not about specific wording in a particular policy and the legal ramifications of such wording for his clients.
However, IF a long term care insurance company tries to deny your claim, your broker can go to bat for you arguing in your behalf. Charlie did this for his clients and he won. Often a broker can push a claim through, when a consumer cannot. They can't argue law, but some do have "pull". This is especially true if the broker is an long term care insurance company's top producer. The company doesn't want to upset the broker and risk losing future sales, even if they are vaguely within their rights to deny a claim. (I say vaguely, because some policies are vague in their wording. )
So, if you do need assistance getting your claim approved, you might want to see if your broker can help before spending money on a lawyer. Please note: There may be time limitations pertaining to filing an appeal or contesting an insurance company's denial of claim/benefits. If you think your claim has been unjustly denied, do not delay. Act right away.
In most cases, your broker can become your best friend during "claims time". Coming face to face with a long term care situation can be an incredibly stressful and emotional time, both for the person needing care, as well as for family members.
NOTE: Read your policy to see if you will need to file your claim within a certain amount of time. Some policies require written notice within 30 -90 days from the verification of disability.
Call your long term care insurance agent as soon as you need to receive benefits. A conscientious broker will assist you with your claim. Agents should consider it part of their job. Some agents may even go the extra mile by helping you fill out your paperwork and making sure it gets filed in time.
It's good to know that you have a trusted broker to lean on during what may be a confusing and heart-wrenching time.
Long term care insurance activist, Clay Cotton, writes for http://www.PrepSmart.com - The Online Baby Boomers Decision Assistance Center, where you get Free Long Term Care Insurance advice, comparative rate quotes and personal guidance, all while safely at home in your favorite pajamas and bunny slippers.
Article Source: ArticleBazaar.net
A contract is a contract, and a long term care insurance company has the right and responsibility to follow it's policy's wording to the letter. Buyers BEWARE! Companies can "interpret" vague wording in their favor. So, it's a very good idea to enlist the expertise of an insurance coverage contract lawyer in the very beginning, rather than waiting until being denied. Just know that lawyers are pricey, so be prepared to spend some extra cash for this last step.
Unless you are well versed in contract law and know the in's and out's of the insurance industry's language, do not supposed that you are smarter than your long term care insurance company's lawyers. Make sure you know what you are buying.
Checking policy wording with a contract lawyer who knows the long term care insurance lingo while also making sure you have a competent and compassionate long term care insurance broker in your corner is the best of both worlds.
Brokers can be very helpful, as long as they are consumer-focused, however they are not trained in law. Even Clay's long term care insurance mentor/trainer, who had years of experience, was caught unaware a few times. After believing a policy's wording meant that it promised coverage under certain circumstances, Charlie was devastated and infuriated to learn that a client's claim was questioned. Charlie wasn't a lawyer, and in good faith he believed what the insurance company had alluded to during his training. Maybe he was too trusting. His training was about sales, not about specific wording in a particular policy and the legal ramifications of such wording for his clients.
However, IF a long term care insurance company tries to deny your claim, your broker can go to bat for you arguing in your behalf. Charlie did this for his clients and he won. Often a broker can push a claim through, when a consumer cannot. They can't argue law, but some do have "pull". This is especially true if the broker is an long term care insurance company's top producer. The company doesn't want to upset the broker and risk losing future sales, even if they are vaguely within their rights to deny a claim. (I say vaguely, because some policies are vague in their wording. )
So, if you do need assistance getting your claim approved, you might want to see if your broker can help before spending money on a lawyer. Please note: There may be time limitations pertaining to filing an appeal or contesting an insurance company's denial of claim/benefits. If you think your claim has been unjustly denied, do not delay. Act right away.
In most cases, your broker can become your best friend during "claims time". Coming face to face with a long term care situation can be an incredibly stressful and emotional time, both for the person needing care, as well as for family members.
NOTE: Read your policy to see if you will need to file your claim within a certain amount of time. Some policies require written notice within 30 -90 days from the verification of disability.
Call your long term care insurance agent as soon as you need to receive benefits. A conscientious broker will assist you with your claim. Agents should consider it part of their job. Some agents may even go the extra mile by helping you fill out your paperwork and making sure it gets filed in time.
It's good to know that you have a trusted broker to lean on during what may be a confusing and heart-wrenching time.
Long term care insurance activist, Clay Cotton, writes for http://www.PrepSmart.com - The Online Baby Boomers Decision Assistance Center, where you get Free Long Term Care Insurance advice, comparative rate quotes and personal guidance, all while safely at home in your favorite pajamas and bunny slippers.
Article Source: ArticleBazaar.net
Wednesday, May 2, 2007
Tips To Choosing The Right Auto Insurance Company
Tips To Choosing The Right Auto Insurance Company by Andrew Daigle
Are you in the market for better auto insurance rates? Or, perhaps you are simply looking for a new auto insurance company? Whatever your reason for shopping around, now is the perfect time to request auto insurance quotes from several companies who are more than eager to earn your patronage. In fact, many companies will compete for your business by way of auto insurance rates.
Your first step to choosing the right auto insurance company is to consider the type of coverage that you need. For instance, if you have a less than perfect driving record or past credit problems, you may want to compare auto insurance costs from companies who specialize in giving customers a second chance to earn discount auto insurance. If you own more than one vehicle, you may find that some auto insurance companies will offer cheap auto insurance rates in exchange for becoming your exclusive provider. In other words, transferring all of your policies to one company may result in discount auto insurance at its best.
The next step in choosing an auto insurance company is to look for one that rewards customers based on a good driving record. One of the keys to a respectable auto insurance company is flexibility when it comes to coverage selection and incentives to promote better and more responsible driving. In addition to comparing auto insurance rates and plans, take the time to review the auto insurance company's policy on discount auto insurance rates for those with a safe driving record.
It's important to realize that auto insurance rates vary from one area to the next. For instance, Pennsylvania auto insurance may be less expensive than New York auto insurance or vice versa. Regardless of where you live, however, most will agree that auto insurance is expensive and it's essential that you compare auto insurance rates to ensure that you are getting what you pay for. A good auto insurance company, for instance, will offer various deductibles, competitive auto insurance rates and some type of coverage that allows for the temporary payment of medical bills in the event that you ever become involved in an auto accident. If you are injured as a result of another motorist's negligence, many auto insurance companies will pay for your medical bills and later seek reimbursement from the faulty individual(s). This is a great relief to many, especially those who may not otherwise have health insurance.
As a final thought to choosing an auto insurance company that offers the best auto insurance rate, free auto insurance quotes and/or a flexible program that can be customized to fit your individual needs, simply take the time to shop around and compare auto insurance from more than one company prior to making a final decision.
The information in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional financial or insurance advice relating to auto insurance quotes, discount auto insurance or auto insurance rates. For additional information or to receive an auto insurance quote, contact a local auto insurance company.
Andrew Daigle is the owner, creator and author of many successful websites including Free Auto Insurance Quotes, an auto insurance company research site and a Low Loan Rates site for finding the best rates for personal loans, payday loans, student loans and more for your financial needs.
Article Source: ArticleBazaar.net
Are you in the market for better auto insurance rates? Or, perhaps you are simply looking for a new auto insurance company? Whatever your reason for shopping around, now is the perfect time to request auto insurance quotes from several companies who are more than eager to earn your patronage. In fact, many companies will compete for your business by way of auto insurance rates.
Your first step to choosing the right auto insurance company is to consider the type of coverage that you need. For instance, if you have a less than perfect driving record or past credit problems, you may want to compare auto insurance costs from companies who specialize in giving customers a second chance to earn discount auto insurance. If you own more than one vehicle, you may find that some auto insurance companies will offer cheap auto insurance rates in exchange for becoming your exclusive provider. In other words, transferring all of your policies to one company may result in discount auto insurance at its best.
The next step in choosing an auto insurance company is to look for one that rewards customers based on a good driving record. One of the keys to a respectable auto insurance company is flexibility when it comes to coverage selection and incentives to promote better and more responsible driving. In addition to comparing auto insurance rates and plans, take the time to review the auto insurance company's policy on discount auto insurance rates for those with a safe driving record.
It's important to realize that auto insurance rates vary from one area to the next. For instance, Pennsylvania auto insurance may be less expensive than New York auto insurance or vice versa. Regardless of where you live, however, most will agree that auto insurance is expensive and it's essential that you compare auto insurance rates to ensure that you are getting what you pay for. A good auto insurance company, for instance, will offer various deductibles, competitive auto insurance rates and some type of coverage that allows for the temporary payment of medical bills in the event that you ever become involved in an auto accident. If you are injured as a result of another motorist's negligence, many auto insurance companies will pay for your medical bills and later seek reimbursement from the faulty individual(s). This is a great relief to many, especially those who may not otherwise have health insurance.
As a final thought to choosing an auto insurance company that offers the best auto insurance rate, free auto insurance quotes and/or a flexible program that can be customized to fit your individual needs, simply take the time to shop around and compare auto insurance from more than one company prior to making a final decision.
The information in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional financial or insurance advice relating to auto insurance quotes, discount auto insurance or auto insurance rates. For additional information or to receive an auto insurance quote, contact a local auto insurance company.
Andrew Daigle is the owner, creator and author of many successful websites including Free Auto Insurance Quotes, an auto insurance company research site and a Low Loan Rates site for finding the best rates for personal loans, payday loans, student loans and more for your financial needs.
Article Source: ArticleBazaar.net
Tuesday, May 1, 2007
Beginner’s Guide to Auto Insurance
Beginner’s Guide to Auto Insurance by rail inton
Everything starts from nothing… well yeah, I thin so. It’s just that someone or something made some actions about it, that’s why something had happened to that nothing. Those actions primarily start from the basic. Even in the dictionary, the word “basic’ comes before “complex”. But logically, everybody must learn first the fundamentals before the complexity of a thing. Like in the auto insurance. Here is the primary thing you should know to get best insurance would suit your lifestyle.
Many people think that they only need auto insurance so they can get their registration and tag and then be able to drive their car. It is something that they need because their license will be suspended if they don’t get it. Some people even think it’s just a bother to them because they don’t get into accident or that they are good drivers.
Oftentimes people will call to the insurance companies and will ask for the cheapest insurance policy or the one that is only required. They only become aware of what coverage they have when they need it, like when they need to make a claim.
You should always have as much insurance as you can afford to carry. Having too little is never good and if you have insurance you cannot afford is not any better too. A policy that is cancelled due to non0payment does you no good at all.
Florida is a no-fault state. If you have the proper state required coverage, you will be protected by the no-fault law. If you are in an accident whether you are at fault or not at fault, you will go through your own personal injury coverage for your medical expenses for the first $10,000. If you do not have at least a minimum insurance then you will not be protected and may be subject to paying for the injuries of the other people you hurt in the accident.
There are different types of coverage that could meet your insurance needs. Each of them has a proper purpose and you can select whatever type would suit you.
Personal Injury Protection and Property Damage are the minimum insurance in the state of Florida. Personal Injury Protection or P.I.P covers medical, hospital and funeral expenses up to the limits. It also covers others in your vehicle and pedestrians struck by your car. Property Damage liability covers if your vehicle damages another person’s property. Car, house, motorcycle, etc are the example of properties that would be covered.
Bodily Injury Liability is another important coverage. It covers other people’s injury or death that you are responsible for up to the limits you purchase. Though it is not required by Florida for state minimum insurance, it satisfies another law called the Financial Responsibility Law. It states that your license may be suspended if you are not financially responsible at the time of and at fault accident where someone gets injured or property damage occurs. By filing an SR-22, you may be able to get you license back. This form shows to the stated you are now carrying Bodily Injury Coverage and are now financially responsible. Usually you must carry this for 3 years with no lapses coverage.
Another common insurance people ask are the Full Coverage. Well, this is not an insurance coverage. Most people only know that their car dealers or bank wants Full Coverage so they ask for it. Actually, Comprehensive and Collision Coverage are what these companies look for. Collision covers repairs when your vehicle hits or is hit by another vehicle. It will also pay up to the book value of the vehicle at the time of a loss if it is destroyed. On the other hand, Comprehensive cover for loss caused by other circumstances other than collision like flood, theft, fir or animal damage. It also covers total losses up to the book value of the vehicle.
Medical and Uninsured Motorist are also other types of coverage. Your medical costs and your passengers injured in an accident are covered by the Medical coverage. Uninsured Motorist covers injuries to you and your passengers when the other person in the accident is at fault, but does not have enough insurance.
Roger Ricafort Maintain the following sites: Personal Loans, Site review, cancer studies
Article Source: ArticleBazaar.net
Everything starts from nothing… well yeah, I thin so. It’s just that someone or something made some actions about it, that’s why something had happened to that nothing. Those actions primarily start from the basic. Even in the dictionary, the word “basic’ comes before “complex”. But logically, everybody must learn first the fundamentals before the complexity of a thing. Like in the auto insurance. Here is the primary thing you should know to get best insurance would suit your lifestyle.
Many people think that they only need auto insurance so they can get their registration and tag and then be able to drive their car. It is something that they need because their license will be suspended if they don’t get it. Some people even think it’s just a bother to them because they don’t get into accident or that they are good drivers.
Oftentimes people will call to the insurance companies and will ask for the cheapest insurance policy or the one that is only required. They only become aware of what coverage they have when they need it, like when they need to make a claim.
You should always have as much insurance as you can afford to carry. Having too little is never good and if you have insurance you cannot afford is not any better too. A policy that is cancelled due to non0payment does you no good at all.
Florida is a no-fault state. If you have the proper state required coverage, you will be protected by the no-fault law. If you are in an accident whether you are at fault or not at fault, you will go through your own personal injury coverage for your medical expenses for the first $10,000. If you do not have at least a minimum insurance then you will not be protected and may be subject to paying for the injuries of the other people you hurt in the accident.
There are different types of coverage that could meet your insurance needs. Each of them has a proper purpose and you can select whatever type would suit you.
Personal Injury Protection and Property Damage are the minimum insurance in the state of Florida. Personal Injury Protection or P.I.P covers medical, hospital and funeral expenses up to the limits. It also covers others in your vehicle and pedestrians struck by your car. Property Damage liability covers if your vehicle damages another person’s property. Car, house, motorcycle, etc are the example of properties that would be covered.
Bodily Injury Liability is another important coverage. It covers other people’s injury or death that you are responsible for up to the limits you purchase. Though it is not required by Florida for state minimum insurance, it satisfies another law called the Financial Responsibility Law. It states that your license may be suspended if you are not financially responsible at the time of and at fault accident where someone gets injured or property damage occurs. By filing an SR-22, you may be able to get you license back. This form shows to the stated you are now carrying Bodily Injury Coverage and are now financially responsible. Usually you must carry this for 3 years with no lapses coverage.
Another common insurance people ask are the Full Coverage. Well, this is not an insurance coverage. Most people only know that their car dealers or bank wants Full Coverage so they ask for it. Actually, Comprehensive and Collision Coverage are what these companies look for. Collision covers repairs when your vehicle hits or is hit by another vehicle. It will also pay up to the book value of the vehicle at the time of a loss if it is destroyed. On the other hand, Comprehensive cover for loss caused by other circumstances other than collision like flood, theft, fir or animal damage. It also covers total losses up to the book value of the vehicle.
Medical and Uninsured Motorist are also other types of coverage. Your medical costs and your passengers injured in an accident are covered by the Medical coverage. Uninsured Motorist covers injuries to you and your passengers when the other person in the accident is at fault, but does not have enough insurance.
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Roger Ricafort Maintain the following sites: Personal Loans, Site review, cancer studies
Article Source: ArticleBazaar.net
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