(IFAwebnews) – Beginning Jan. 1, Maryland residents will be paying more for auto insurance under a new measure signed into law by Gov. Martin O’Malley.

Today (May 4), O’Malley put his signature to a series of new laws, including HB 825. The new law increases the minimum amounts of coverage for bodily claims or death from a motor vehicle accident from $20,000 to $30,000 for one person, and from $40,000 to $60,000 for any two or more individuals. The law applies to all vehicle liability insurance policies issued, delivered or renewed in the state, starting Jan. 1, 2011.

The measure was approved by both houses of the Maryland General Assembly during the 2010 session.

In a statement to IFAwebnews.com, O’Malley’s office said the legislation adjusts insurance regulations that have “not been updated for several years, and follows a trend that many other states have also done.

“Ultimately, this national trend is designed to protect drivers who are involved in accidents and their families from the undue burden of exorbitant out-of-pocket expenses if the other driver is carrying insufficient insurance coverage,” O’Malley spokesman Shaun Adamec said.

The measure has come under fire by property-casualty insurers and trade groups, including the American Insurance Association.

The association, representing 300 insurers nationwide, told IFAwebnews.com, its stands by its opposition to the bill, which makes Maryland’s minimum liability coverage requirements among the nation’s highest.

“Forcing drivers, especially economically vulnerable ones, to purchase higher liability limits on their auto insurance policies during this tough economy is misguided,” said Tammy Velasquez, AIA vice president and director of state affairs, in a statement. “This legislation will lead to increased insurance costs and greater numbers of uninsured drivers.”

Velasquez added that Maryland’s current requirements “are working just fine,” despite O’Malley’s contention that they were ready for change.

(PRNewswire) – The Pennsylvania Insurance Department has approved Travelers Insurance’s discounts on “green” homeowners’ products, Insurance Commissioner Joel Ario said today.

 The policy discount is based on having the U.S. Green Building Council’s Leadership in Energy and Environmental Design, or LEED, building certification.  

“The LEED certification is the most widely recognized environmental building standard in our country,” said Ario. “I am pleased to announce the approval of this type of insurance discount; a first for homeowners in Pennsylvania.”

The Travelers green building discount provides incentives for greater energy efficiency and air quality. Since a LEED certification requires an extensive review of all building systems to ensure efficient operation, the decision to upgrade a building often reflects greater concern with issues that affect loss control.

Specifically, the Travelers Home and Marine Insurance Company and TravCo Insurance Company will now offer:

 “Green Home” coverage (a new endorsement with an additional rate) that will extend coverage to pay for additional costs and expenses associated with green building alternatives, personal property green alternatives, and green methods to dispose of covered debris.

A five percent “Green Discount” if the residence has a LEED Certification.

These discounts are effective June 20 for new policies and Aug. 26 for renewed policies. The coverage can include an agreement to pay a certain percentage above normal replacement costs to cover the additional costs of upgrading to green standards. Since the coverage does vary, policyholders should carefully consider their potential exposures.

 “The Insurance Department intends to survey the major insurance companies headquartered in Pennsylvania to get a fuller understanding of their strategies related to climate change issues,” Ario said. “As sustainable buildings become more common, green insurance will become more popular and some of its features might become a standard part of property policies.”

(PRNewswire) – QBE today announced that it has agreed to acquire NAU Country Insurance Company, a leading writer of crop insurance business based in Ramsey, Minnesota. Completion is expected in July 2010, subject to regulatory approvals.

The acquisition supports QBE’s commitment to growing the business through product diversification and new distribution channels. It also strengthens its position as a leading insurer in the United States. QBE the Americas is one of the top 25 property and casualty insurers in the U.S., with $4 billion in gross written premium in 2009 and following this acquisition being completed, an estimated GWP of more than $5 billion in 2010.

In 2009, NAU wrote $976 million of gross earned premium. Net earned premium was $354 million and profit after tax was $92.5 million. The combined operating ratio–that is the ratio of claims, commissions and expenses to net earned premium–was 61.3% in 2009, 87.3% in 2008 and 62.6% in 2007.

NAU is the nation’s third largest writer of Multi-Peril Crop Insurance (MPCI), a U.S. Department of Agriculture program that provides protection against weather-related and other unavoidable causes of crop loss. The company operates ten offices across the U.S. and has over 1,600 independent agents.

QBE Americas’ Chief Executive Officer, John Rumpler, says the acquisition will complement QBE’s agricultural book of business. “NAU has the expertise and knowledge to accommodate a very diverse range of crops and meet the unique insurance requirements of growers.”

QBE Group CEO Frank O’Halloran sees NAU as a good fit with a focus on superior customer service. “We look forward to providing the financial foundation and overall strategic vision that will allow NAU to do what it does best–providing innovative solutions for customers.”

QBE Insurance Group Limited is one of the top 25 insurers and reinsurers worldwide. Headquartered in Sydney, Australia, QBE operates out of 45 countries around the globe, with a presence in every key insurance market. The Americas Division, headquartered in New York, conducts business through various property and casualty insurance subsidiaries in eight countries. QBE’s Americas Division produced $4 billion in gross written premium in 2009 and an 89.7% combined operating ratio. QBE Insurance companies are rated “A” (Excellent) by A.M. Best and “A+” by Standard and Poor’s. For more information, visit qbe.com.

(Senior Journal) – Millie Toda of Toledo, Ohio, takes cares of her husband Richard, 83, who is severely disabled from Parkinson’s Disease. She’s grateful that with the help of government-paid home health aides and adult day care, he’s able to continue living at home rather than move to a nursing home.

Even with that aid, Toda, 75, says extra money would be a big help. She could use the cash to help replace the broken lift on the front porch so she wouldn’t have to pull and push him up and down the front steps of their trailer home to get to his wheelchair.

A provision in the health care overhaul law signed by President Barack Obama last month could bring some help. The law establishes a voluntary, long-term care program that will provide cash to enrollees who suffer at least two limitations in daily activities, such as eating, bathing and dressing.

Supporters say the program, known as the Community Living Assistance Services and Supports (CLASS) Act, will give families greater means to care for disabled relatives. There are about 10 million Americans who need long-term care services, including 4 million under age 65.

“This will empower consumers by putting money in their hands. Then entrepreneurial organizations will come to them and ask, ‘What can we do to help you?’ ” said Larry Minnix, president of the American Association of Homes and Services for the Aging, which lobbied for the CLASS Act.

But some business and insurance groups argue that the CLASS program won’t be financially sustainable. The key is getting enough Americans to sign up for CLASS, advocates respond.

James Gelfand, senior manager of health policy at the U.S. Chamber of Commerce, which opposed the CLASS Act, doubts that participation will be adequate. Only about 5 percent of eligible employees choose to participate in employers’ private long-term care insurance benefit programs and about 7 million Americans own private long-term care policies.

The CLASS program will be run by the U.S. Department of Health and Human Services (HHS). After contributing for five years, participants who are disabled and meet criteria set by HHS will be eligible for a cash benefit of at least $50 a day. There will be no screening for preexisting conditions and no lifetime benefit limit.

The CLASS cash benefit will be flexible. It can be used to pay for a home health aide, transportation, assistive technology such as wheelchairs, lifts, text telephones and sensors with alarms, adult day care, respite care to give the family caregiver a break, household modifications to accommodate the disabled person – or even to pay a family member to provide the care. Alternatively, it can be used to help pay for assisted living or a nursing home.

The new health law has an insurance policy that would provide about $75 a day to help people like the Toda’s pay for long term care. (JD Pooley)

Such care, of course, can be extremely expensive. Nursing homes costs average more than $70,000 a year and home health expenses average just under $30 an hour. But Nancy King, chief operating officer of Senior Independence, a nonprofit service agency in Columbus, Ohio, said that even $50 a day — $18,250 a year — would help people trying to pay for a home health aide, adult day care, or assisted living.

HHS has to write the rules for the program, including setting the premium and benefit levels and the disability triggers for receiving benefits. That process will determine when the program can begin.

Under the law, premiums will vary based on initial enrollment age, with younger people paying less; students and people below the poverty level will pay only $5 a month.

While HHS has authority to adjust premiums to keep the program financially viable, it’s expected that participants will pay the same premium amount as long as they remain continuously enrolled.

In an evaluation of the proposal last fall, the nonpartisan Congressional Budget Office estimated that monthly premiums would average $123 at the start.

It also projected that benefits would average $75 a day, with annual inflation adjustments. In its analysis, the CBO estimated the program would reduce net federal spending for the first 20 years – particularly because no claims would be paid in the first five years – then boost net outlays by tens of billions in subsequent decades.

Under the terms of the health law, the CLASS program has to pay for itself through premiums and cannot be subsidized by the government.

Keeping the program solvent, CBO said, hinges on enrollment of healthy individuals. If fewer Americans were to sign up, and many of them were in poor health, the program would face financial trouble, the CBO concluded.

In an effort to attract healthy Americans, the CLASS Act hopes to interest employers and their workers by streamlining the sign-up and premium payments.

Employers can offer workers the opportunity to pay their premiums through a payroll deduction. If an employer does that, all employees must be automatically enrolled in the program, except those who notify their employer that they want to opt out. The CBO said that this automatic enrollment feature could boost participation among healthier people.

The law also allows workers to pay premiums on their own if their employer doesn’t participate or they are self-employed.

Many hope the CLASS Act will further increase public awareness of long-term care needs and boost sales of private policies to cover more expensive care like nursing homes.

In a written statement, John Hancock Financial, a major seller of long-term care insurance, said the CLASS act “sends a powerful message about the importance of long-term care preparedness” that should motivate Americans. “It will not replace the need for private long-term care insurance for many Americans.”

(Reuters) – People living in countries with government-run healthcare systems like Sweden and Canada are far more confident than Americans that their families can get good, affordable care, according to a 22-nation survey released on Thursday.

The Ipsos/Reuters online poll found 75 percent of Swedes and nearly 70 percent of Canadians thought it would be fairly easy to get treatment if a relative became ill, compared to just 51 percent of Americans.

Conducted while the U.S. Congress fought over sweeping changes to expand access to health insurance, the November 2009 to January 2010 survey found Americans were divided over their access to healthcare. The U.S. health reforms became law last month.

“Even at this very divisive time, half of the (U.S.) public was basically satisfied with their healthcare” said Darrell Bricker of Ipsos, a global survey-based market research company. “Americans are basically split on this.”

The United States spends more than any other nation on healthcare — roughly 16 percent of its economy — but still has higher rates of infant mortality, diabetes and other illnesses than other rich countries.

Still, not all countries with a government hand in healthcare reported greater satisfaction, according to the poll, which surveyed more than 23,000 people worldwide.

Just 55 percent of residents in Britain, which has nationalized healthcare, expressed confidence while 45 percent of those in Germany thought it would be easy to access treatment.

In Japan, which provides universal medical care, just 15 percent said they thought a relative could easily get affordable, quality care. The Asian nation boasts a high life expectancy but is grappling with health costs as the elderly make up more than 40 percent of the population.

Other countries that ranked low in satisfaction included Hungary, Russia and South Korea — all of which showed confidence in good care at less than 30 percent.

The survey also found that neighboring giants India and China had vastly different experiences, with 64 percent of Indians citing confidence, putting them fifth behind the Netherlands. In China, 34 percent said they thought they could get good care.

Across all countries, women, adults younger than 55, the poor and the less-educated reported lower satisfaction with their access to healthcare, the survey found.

Ipsos surveyed 23,351 adults in 22 nations that account for 75 percent of the world’s gross domestic product.

Countries polled were: Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, France, Germany, Britain, Hungary, India, Italy, Japan, Mexico, Netherlands, Poland, Russia, Spain, South Korea, Sweden and the United States.

Respondents were recruited and screened, then results were balanced to reflect the country’s demographics, according to Ipsos. The margin of error is plus or minus 3.1 percent.

(BusinessWire) – GEICO recently partnered with the national program, Recycled Rides™, to provide used vehicles to three local families (two from Long Island and one from Brooklyn) who could use the reliable transportation. The vehicles were presented to the three families during a recent ceremony attended by New York Assemblyman Dean Murray.

GEICO donated the used vehicles while local National Auto Body Council (NABC) body shops donated their repair services. Recycled Rides is an awareness project that encourages local NABC members to refurbish and donated recycled vehicles to local families in their communities.

“GEICO was delighted to have this opportunity to make a direct impact on our local community,” said Ken Lalia, a GEICO auto damage manager who helped present the vehicles to the families. “It’s a pleasure to be part of such an honorable program. This was really a community effort and we were glad to be a part of it.”

“It’s such a privilege to have companies like GEICO participate in this program,” said Recycled Rides chairman, Nick Notte. “Having a vehicle is something people often take for granted, but there are families out there that can use the reliable transportation. We’ve found that it often changes their lives. We are delighted to partner with companies like GEICO who really make a difference in our communities.”

About GEICO

GEICO (Government Employees Insurance Company) – as part of Berkshire Hathaway – is the third-largest private passenger auto insurer in the United States*. GEICO provides auto insurance coverage for 9 million policyholders and insures more than 16 million vehicles.

In addition to auto insurance, GEICO offers customers insurance products for their motorcycles, all-terrain vehicles (ATVs), boats, homes, apartments and mobile homes. Commercial auto insurance and personal umbrella protection and life insurance are also available.

As a member of the Berkshire Hathaway group of companies, GEICO is rated A++ for financial strength by A.M. Best Company and ranks at the top of several national customer satisfaction surveys. For more information, go to geico.com.

(ClaimsJournal) – The Missouri Department of Insurance has lifted its restrictions on Chicago-based auto insurance company, Universal Casualty Co., allowing it to start offering new policies in Missouri again.

Director John M. Huff issued a cease-and-desist order against Universal Casualty in June 2009, banning it from writing new business until it changed numerous business practices. Huff said at the time his department had a large number of consumer complaints and found numerous violations of state law.

At the time the C&D order was enacted, Universal Casualty had more than 13 times the typical number of consumer complaints for a company its size.

Since then, department officials have been working with Universal Casualty to ensure it was addressing the problems. On March 31, the department lifted the C&D order, saying the company had “demonstrated to the Director that it has implemented operational changes necessary to improve its business practices.”

Specifically, the company has agreed to respond to customer claims more promptly, make reasonable offers for claims payments and not make unreasonable demands of customers filing claims, the department said.

Among the Missouri-required conditions met by Universal Casualty:
Smaller workloads for its insurance adjusters, allowing them to better respond to and service claims from policyholders;
Complaints by policyholders to the Department of Insurance are down dramatically since November 2009; and
The company has paid a $100,000 fine to the department for the previous violations of Missouri law.

According to Department of Insurance market share reports, the company wrote $5.9 million in premiums in 2008.

In June 2009 the Indiana Department of Insurance also ordered Universal Casualty to stop writing new policies in the state until the company could demonstrate “improved business practices.” The department fined the company $200,000.

In August 2009, Illinois regulators fined Universal Casualty $200,000, as well, saying the company had failed to adopt and maintain procedures for the prompt investigation and settlement of consumers’ claims.

(The Baltimore Sun) – A second Senate committee Monday approved a bill that would raise the minimum amount of liability coverage Maryland vehicle owners must carry on their auto insurance, giving the measure a boost as it heads to a vote on the floor.

The Judicial Proceedings Committee acted immediately after holding a hearing on the bill that brought testimony from accident victims in favor of the change and from advocates for the poor in opposition.

“We are seriously concerned about what this will do to the most vulnerable people in the state,” said Melissa Broome of the Job Opportunities Task Force.

But trial lawyer Frank Boston said 90 percent of his clients who are injured in auto crashes are also low-income people.

The committee voted 8-3 in favor of the measure, which would raise the minimums from $20,000 per injured person and $40,000 per crash to $30,000 and $60,000, respectively.

The vote was largely advisory because the legislation had already been approved by the Senate Finance Committee last week. But a negative vote from the committee could have clouded the bill’s prospects.

The measure, which has passed the House, now goes to the full Senate. If it passes the bill without changes and the governor signs it, which he is expected to do, the measure would raise the minimum coverage for the first time since the early 1970s.

The much-lobbied legislation has pitted the state’s trial lawyers, which argued that the old minimums have been eroded by inflation, against the insurance industry, which contended the measure would force companies to raise premiums.

Maryland’s current minimums are below the national average, but the change would vault the state into the top 10. More than half of the states set the minimums at $25,000 and $50,000, but the committee voted down an amendment that would have put Maryland at that level.

Times are hard and you can never be too certain about the future, especially if you run a company or own a business. To make sure that all your hard work will eventually pay off even when worse comes to worst in the coming years, it will be best to get the best kind of business insurance that will fit your needs as well as your budget.

You can consider this as an investment and something that can catch you if you fall flat on the floor. There are many risks that you always have to face as you keep on running the business, and the commercial insurance will serve as protection in cases like damage to properties that include business vehicles, inventory and other important equipments.

To make sure that you are doing the right thing, you must first check on the background of the seller of the insurance plan and what most people think about the product. This way, there are more chances that you will get good offers that can provide good and satisfying compensation that will be worthy of the amount that you are going to spend in paying for the set fees.

Here are some more of the benefits of business insurance to help you solidify your thoughts about it.

1. You will be protected from loss of income after an uneventful problem occurred that forced you to close the business.

2. Coverage includes loss of assets through burglary, robbery and dishonesty of employees.

3. You will also get protection from liability exposures like offenses that may come from wrong advertising, slander, libel, wrongful entry and many more.

In business, it is not enough that you work hard to earn more. You also have to be wise and get the company insured to make sure that the future will still be bright no matter what happens.

You are probably wondering if there are ways for you to reduce your life insurance premium. The current rate that you are paying is already too much of a burden as there are other financial matters that you have to prioritize. You are probably in the verge of calling the insurance company to stop the collection as you no longer wish to avail the benefits of your life insurance. You should never come to this point because in the end, you and your family are the ones who are going to get all the benefits from the investment that you have made with the insurance plans that you have availed.

To get the best deal and to help you reduce your life insurance premium, here are some essential tips to consider:

1. Ask the insurance provider about the available payment schemes. You can collect bigger savings if you will opt to pay the policy plan on an annual basis. This can also be achieved when you settle the payments by direct debit from the funds of your bank account. This is more ideal and convenient rather than religiously paying your dues on a monthly basis. Others even require plan holders to pay on a weekly basis.

2. Before you pay for anything and sign up on any life insurance plans, make sure that you have done your research about the subject. Look at all your options by reading customers’ reviews online and settling for the best provider that can give you good privileges at lower premium rates. You have also think about the details of the policy and how much will you be required to pay. You also have to ask around about the surrender value if ever you decide to cash it in early.

There are other ways that can help you reduce life insurance premium, so you must never be afraid to invest on one because it is going to be for your own good in the long run.