Insurance

RANCHO CUCAMONGA, Calif., Aug. 24, 2011 — /PRNewswire/ — OnlineAutoInsurance.com, the originator of the nationwide public rating engine, has launched http://reviews.onlineautoinsurance.com/ to arm consumers with yet another useful tool to use in the process of shopping for coverage.

Evolving beyond its role of providing timely news on the industry and instant quotes from a variety of automobile insurers, the company is now allowing average drivers to share their experiences with providers and to benefit from the feedback of others.

“We are pleased to be able to provide consumers with insights from one of the most important sources in the insurance marketplace—their fellow consumers,” said Cesar Diaz, founder of the site and a veteran agent. “It’s very exciting to give customers another useful tool to add to their insurance shopping toolbox.”

As anyone who has shopped for a policy knows, a quality coverage provider involves more than just a good price.

Policyholders want their claims handled quickly and efficiently. They would like to be able to contact their coverage provider and have their questions answered and concerns addressed in a prompt and professional manner. And saving a few bucks doesn’t hurt, either.

The new auto insurance reviews site offers consumer-provided evaluations of 14 of the leading coverage providers in the industry, from Allstate to USAA, with a five-star rating system and easy-to-use features that let users browse and compare reviews of all insurers on factors like rates, service and claims.

Readers can visit the site to leave their thoughts on the service provided by their carrier, browse the comments left by others to get a feeling for their level of satisfaction, or do both.

Consumers are urged to use the new function along with online rate-comparison services and government data on insurers that can be found on regulators’ websites, a directory of which can be found at http://www.usa.gov/directory/stateconsumer/index.shtml

The site complements existing services offered by OnlineAutoInsurance.com, including informative resource pages, an easy-to-use quote-comparison generator and breaking news and insightful analysis of industry trends.

The launch of the new review site is another step toward the company’s vision of becoming the preferred, one-stop source for objective insurance information that empowers the individual online consumer.

SOURCE Online Auto Insurance, LLC

Washington (CNN) — Five years after a law to protect U.S. military personnel from salespeople selling life insurance, a new Pentagon report finds problems continue.

The Inspector General found that insurance agents used prohibited sales practices both on and off U.S. military bases to persuade personnel to buy insurance they may not need or be able to afford. And the report also found that military personnel failed to enforce existing policies that limits solicitation of military personnel. In addition, the report said, companies used misleading marketing techniques and misused the Defense Department myPAY internal payment system.

“Although DoD (Department of Defense) has taken some corrective actions and some States have initiated actions against insurance agents and companies, junior enlisted Service members continue to purchase high-cost life insurance products considered unsuitable for most military personnel and which may threaten their financial stability,” the Pentagon Inspector General wrote in a report released Tuesday.

All military personnel are automatically enrolled in a life insurance policy administered by the Veterans Administration from their first day of training or active duty.

The report found that as an example of improper actions by private insurance agents, Marines based in Okinawa were introduced to an insurance agent during a financial class taught by a Defense Department civilian and were later told by a noncommissioned officer to attend a sales solicitation event. Another Marine told Inspector General investigators he was not allowed to leave formation before agreeing to provide contact information to insurance salesmen.

“Insurance agents used prohibited sales practices on bases, and responsible installation personnel failed to comply with solicitation policies,” the report said. “Insurance agents and DoD responsible officials must be held accountable for not complying with established controls to mitigate risks associated with the financial welfare of military personnel and their families.”

The report said insurance companies also used a letter signed by retired generals and admirals to encourage personnel to buy their policies.

And the report said the Pentagon must play a more active, informed role. “DoD did not have adequate knowledge of agents and companies debarred, banned, or limited from solicitation on and near DoD installations,” the report said.

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Hospital and education officials in Michigan hope parents will add one more thing to their children’s back-to-school shopping lists.

Insurance.

The Michigan Health Hospital Association is launching an 8-week campaign to enroll uninsured schoolchildren in MIChild or Healthy Kids – the state’s free and low-cost health insurance programs for low-income families.

The programs provide coverage for most dental, medical and vision services, including health checkups and doctor visits, hospital care, immunizations and mental health services.

“We’re in a war right now … against new diseases like obesity, diabetes and mental health issues,” said Dr. Stephen Guertin, medical director of Sparrow Hospital’s Children’s Center in Lansing, which announced the enrollment campaign Tuesday.

“That war is being fought out in primary care offices. MIChild and Healthy Kids gives kids access to these offices, access to the disease management necessary to fight this war.”

MIChild is open to families with children under age of 19 who meet monthly income requirements and have no other comprehensive health insurance, including Medicaid.

Families accepted into the program pay $10 per month. Healthy Kids is open to any uninsured child under age 19 or someone who is pregnant without insurance coverage. Healthy Kids is a free program.

The Enroll Michigan coalition announced the new campaign in separate news conferences at four hospitals in regions with the highest numbers of uninsured children, including Ingham County. Others were in Flint, Southgate and Grand Rapids.

Nearly 4,600 children in Ingham County lack health insurance coverage, according to the U.S. Census.

More than 127,000 children in Michigan are uninsured, said Kim Sibilsky, executive director of the Michigan Primary Care Association.

“Why aren’t these kids enrolled?” she said. “Some families don’t think they’re eligible. Others fear the process will be cumbersome and complex, or they don’t have access to transportation. Others just aren’t aware of these programs.”

To apply or find out if a child is eligible, parents or guardians can call 211 or visit www.enrollmichigan.com.

Interpreters are available for non-English speakers.

COLUMBIA, S.C. –

Hurricane Irene could produce high winds and even tornadoes that could affect the Upstate, but insurance officials say hurricane damage on the coast should not raise your homeowner’s insurance rates.

Russ Dubisky, executive director of the South Carolina Insurance News Service, says how high winds could get in the Upstate depends on the size, strength and direction of the storm. “Depending on how far you are inland, you might not get those direct-lined winds from the hurricane, but you can certainly get some severe weather, some high wind speeds from the outer bands of the storm.”

He says a typical homeowner’s insurance policy would cover wind damage but not flooding. You need separate flood insurance to cover that. Flood insurance doesn’t take effect until 30 days after it’s purchased, so you can’t buy it right before a storm hits and be covered.

If the state were to get a lot of expensive damage on the coast, it’s not likely that those insurance claims would mean your homeowner’s insurance rates in the Upstate would go up, Dubisky says.

“There are so many factors that go into building a rate that very rarely will you see any single factor be the lone cause of any rate change,” he says.

A fender bender isn’t the only kind of accident that can raise your auto premium. Forget to make a credit card payment, and it might cost more to insure your ride.

Most auto, homeowner and other property insurers use a credit-based insurance score to determine how likely it is you’ll file a claim, according to David Snyder, vice president and associate general counsel of the American Insurance Association. It’s similar to how mortgage lenders, banks and other gatekeepers of credit rely on a credit score to figure out the probability you’ll default on payments.

FICO, TransUnion and LexisNexis are among the major providers of insurance scores. About 90% of auto insurers and somewhere between 85% and 90% of homeowners insurers use the FICO score, says Lamont Boyd, director of FICO’s insurance market. LexisNexis says more than 300 insurance carriers use its scores. TransUnion declined to comment on its market share.

Insurers will use the score, plus other information, to determine what insurance rate they will offer you. For example, auto insurers will consider your driving record and the state where your car is registered, while mortgage lenders will take into account a house’s location and construction materials, among other factors, says Snyder.

Health and life insurers don’t use the credit-based insurance score from FICO. Four states — Massachusetts, California, Hawaii and Maryland — don’t allow one or more types of insurers to use credit-based insurance scores.

What Goes Into Your Insurance Score?

So, how is your insurance score calculated? Generally, it’s based on information found only in your credit report. However, it’s important to remember the insurance score is not the same as your credit score. While the math behind the two scores often yields similar results, it is different.

“Some factors that drive a credit score are similar to the ones that drive the insurance score,” says Boyd. “But the weight or influence of those factors is different.”

For example, payment history makes up 35% of FICO’s credit score; amount owed is 30%; length of credit history is 15%; and new credit and mix of credit are each 10%. That pie is sliced another way for insurance scores. Payment history accounts for 40% of the score, while mix of credit is reduced to 5%. The rest is the same.

LexisNexis uses payment practices, adverse public records and collections (excluding medical), credit utilization, recent credit activity such as credit inquiries and new accounts, length of credit and the number and types of credit, says John Wilson, director of analytics at LexisNexis Risk Solutions.

TransUnion’s scores are weighted toward age of credit account and stability, which includes a responsible mix and use of credit, says Clifton O’Neal, a company spokesman.

Are Insurance Scores Fair?

“These scores have been studied by the (Federal Trade Commission). It concluded that insurance scores do add a significant degree of risk assessment,” Snyder says.

There are critics, though.

Amy Traub, a senior policy analyst at watchdog group Demos, says that credit-based insurance scores hurt lower-income people more because they are more likely to have lower scores. She noted a study that showed while those with lower scores made more claims because they couldn’t swallow the costs, the cost of those claims were not necessarily greater.

Supporters point to a July 2007 FTC study that shows insurance scores help more consumers save money. The study predicts that 3 out of every 5 consumers would receive a discount rather than a hike to their insurance premiums if credit-based insurance scores were used. The savings vary and depend on several factors other than scores, Snyder says.

Checking Your Insurance Scores

Insurers don’t have to disclose these credit-based insurance scores to consumers. FICO does not provide access to its insurance scores. However, consumers can obtain their LexisNexis auto or home insurance score through its website for a fee. Consumers can buy their TransUnion insurance scores at TrueCredit.com.

Boyd, Wilson and O’Neal agree the best way to insure a higher insurance score is to polish your credit report. That means paying your bills on time, keeping credit card balances low and only opening new credit cards or loans when necessary. Keeping credit reports free of score-killing errors is also a smart move.

“It makes sense that people with higher credit scores would generally have higher credit-based insurance scores,” Boyd says. “Those who pay their bills on time are more likely the ones who keep up with car repairs or home maintenance.”

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Many Americans consider their auto insurance rates of the fair price and acceptable. Unfortunately, many Americans do not compare their auto insurance rates with others, with other auto insurance provides or continually check with different providers to find a more affordable car insurance plan. Auto insurance rates can flush away drastically depending on various factors. Any insurance rate quote this month may be much higher or much lower for an individual next month.

Auto insurance coverages based off of various risk factors. Some of the more popular risk factors include age of driver, age of car, driving history, state vehicle is driven and credit score. Many Americans are unaware that their credit score is checked while getting auto insurance. Auto insurance companies use the credit score in an attempt to determine if a driver will be safe on the road. And individuals spending practices and responsibility of paying off debts can often show the likelihood of how safe and responsible that individual is in other aspects of life. It is also an indication of how routinely the auto insurance company may be paid premiums for that particular auto insurance plan. Many Americans are also unaware that the state of vehicle is most often driven can also be important. Some assume that the particular state they live in is the only determinant factor, but take into account New Jersey and New York. With people living in New Jersey will travel to New York City every day to their workplace. Auto insurance companies will take this into account. Some states have special federal requirements that often push the prices in premium costs up. Michigan is one example. They have a no-fault driver policy that will often have many drivers insurance plans be well over $200 a month.

Those looking for auto insurance can start the process by going online and giving rate quote from different car insurance providers. Most car insurance providers, like Geico, SafeAuto, and Progressive provide easy access to free online rate quote tools. These rate quote tools can be used by individuals to get a quick idea of how much they can expect pay for premiums and deductibles on a particular auto insurance policy. It is also good idea to take these rates and compare them across multiple car insurance providers. This can help Americans find a policy that will help them save money monthly on their auto insurance plan.

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1. SafeAuto Car Insurance Rate Comparison August 16th – Collision And Comprehensive Coverage Options And Costs For Drivers
2. Progressive Car Insurance Rates For Drivers In 2011 – August Premium Costs And Deductibles For Collision And Comprehensive Coverage
3. GEICO Car Insurance Rate Comparison With Current State Farm, Allstate And Progressive Coverage – Average Premium Costs In August
4. AllState Car Insurance Policies And Average Rate Quotes From State Farm, Nations Wide And Progressive – Premium Comparison For Affordable Coverage August 2011
5. Current Car Insurance Rate Quotes For Drivers In August – GEICO, State Farm And Nationwide Premiums And Deductible Costs

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NEW YORK–(BUSINESS WIRE)–
Fitch Ratings has affirmed the ‘AA+’ insurer financial strength (IFS)
ratings of Guardian Life Insurance Company of America and its wholly
owned subsidiary, Guardian Insurance Annuity Company, Inc.
(collectively referred to as Guardian). The Rating Outlook is Stable.

Guardian’s very strong ratings reflect exceptionally strong balance
sheet fundamentals, below-average investment risk, stable operating
results, and a favorable operating profile.

Guardian’s exceptionally strong balance sheet fundamentals, include
strong statutory capitalization with limited investment exposure to
structured finance and below investment grade securities. Fitch
estimates that Guardian’s risk-based capital ratio was 481% as of March
31, 2011 compared to 492% at year-end 2010, and expects the RBC to end
2011 well above 450%.

Guardian’s quality of capital is strong, with limited financial leverage
or dependence on reserve financing arrangements. Guardian has $400
million of surplus notes outstanding, which accounted for 7% of TAC at
the end of the first quarter of 2011 compared to a Fitch maximum
guideline of 15%. Operating leverage of 6.1 times (x) is low relative to
mutual company peers and the industry as a whole, and the company’s
pension obligation is fully funded. Guardian’s total financing and
commitments (TFC) ratio is among the lowest in the industry at .04x.

Guardian also has a relatively low risk liability profile with limited
exposure to equity market volatility and disintermediation risk.
Individual participating whole life insurance accounts for roughly 70%
of consolidated general account reserves, while retail annuities account
for just 4%. Fitch views participating whole life as relatively low
risk, given the long duration participating liabilities, limited
disintermediation risk and very limited guarantee provisions. The
ability to adjust policyholder dividends every year provides the company
with significant financial flexibility.

Guardian’s operating performance continues to meet or exceed Fitch’s
expectations. Guardian has consistently generated about $1 billion of
consolidated statutory operating earnings per year pre-tax and
pre-dividend, and has paid out over $700 million in policyholder
dividends in each of the past three years. Guardian’s three core
operating segments — individual life, individual disability and group
non-medical insurance, particularly dental — continue to provide
diversified earnings streams and consistently contribute to results.

Fitch’s concerns include the potential for significant deterioration in
disability loss ratios in the current economic environment and for
regulatory changes that could have a negative effect on Guardian’s
primary markets or distribution channels.

The Stable Rating Outlook reflects Fitch’s view that current trends will
continue over the next 12 to 18 months.

Guardian is a mutual life insurance company based in New York City. As
of March 31, 2011, the group had consolidated statutory total admitted
assets and total adjusted capital of $46 billion and $5.4 billion,
respectively.

Key rating drivers that could lead to a downgrade include a significant
decline in TAC or an RBC ratio below 400% on a sustained basis; a
deterioration in disability claims experience causing a significant
operating or capital loss at the Berkshire subsidiary; and/or regulatory
or tax law changes that hurt the company’s position in its primary whole
life market.

Given that Guardian already has the second highest rating, Fitch does
not anticipate an upgrade at this time.

Fitch affirms the following ratings with a Stable Outlook:

Guardian Life Insurance Company of America

–Issuer default rating (IDR) at ‘AA’;

–Insurer financial strength (IFS) at ‘AA+’;

–Surplus notes at ‘AA-’.

Guardian Insurance and Annuity Company

–Insurer financial strength (IFS) at ‘AA+’.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–’Life Insurance Rating Methodology’ (March 31, 2011);

–’Insurance Rating Methodology’ (March 31, 2011);

–’Insurance Industry: Global Notching Methodology and Recovery
Analysis’ (March 31, 2011);

–’Fitch’s Approach to Rating Insurance Groups’ (Dec. 14, 2010);

–’Total Financing and Commitment Ratio (TFC) for Insurance
Organizations’ (May 21, 2010).

Applicable Criteria and Related Research:

Life Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=612905

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=614266

Insurance Industry: Global Notching Methodology and Recovery Analysis

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=614265

Fitch’s Approach to Rating Insurance Groups

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=586765

Total Financing and Commitment Ratio (TFC) for Insurance Organizations:
Definition and Application

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=528708

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF
THIS SITE.

A Mississippi Health Insurance Exchange could be up and running early next year.

Advocates say the health insurance exchange concept is intended to provide workers with better access to health care. Supporters also say it would reduce businesses’ overhead costs and allow employees to purchase a policy with pretax dollars.

Other states are refusing to carry out programs tied to the federal health care overhaul, but Mississippi Insurance Commissioner Mike Chaney says the state has been considering the exchange for a long time.

Mississippi received $20 million this month from the federal government to move forward in starting its exchange.

It’s the highest grant given to any state to start such an exchange.

Agents in Massachusetts are so dead set against allowing insurers to use consumers’ credit histories in setting auto premiums that they are taking two separate paths toward outlawing it.

The Massachusetts Association of Insurance Agents (MAIA) launched an effort earlier this month to put a measure prohibiting the practice on the 2012 ballot, despite already backing a Senate bill with the same goal.

“Using these factors to set auto rates is simply unfair, discriminatory and unreliable,” MAIA President Frank Mancini says in a statement. “Allowing these factors to be considered will result in increased rates for those Massachusetts drivers who can least afford it.”

Nationwide controversy over credit scoring

The MAIA announcement drew criticism from insurers. It also reignited a simmering debate over the fairness of using information such as a person’s past delinquencies, bankruptcies or late payments to determine how cheap auto insurance will be for a policyholder – a practice often referred to as “credit scoring” or “insurance scoring.”

Whatever you call it, it’s been a source of contention nationwide for more than a decade. Insurers claim that analyzing personal credit information helps them better predict risk and more accurately price policies, while consumer groups and other critics maintain that it disproportionately punishes low-income Americans and minorities.

“I think the reason it’s contentious is that many drivers feel as though there is no correlation between the way they handle their personal finances and their ability to be a responsible driver,” says Michael Barry, a spokesman for the Insurance Information Institute (III). “What (insurers) would say is that this is just one of the many variables that go into pricing an auto insurance policy.”

“Credit scoring has become a regular rate-setting practice in most parts of the country,” says http://www.onlineautoinsurance.com/ CEO Cesar Diaz. “And it can significantly affect premiums. In Nevada, for example, going from the best possible credit score to the worst possible could increase average premiums by 75 percent.”

Only one state, Hawaii, has completely banned the use of credit reports for underwriting and rating, although two other states – Massachusetts and California – have significant restrictions, according to III.

California does not allow the use of credit data unless it is specifically allowed by state regulators, and an administrative rule already prohibits the practice in Massachusetts.

The state’s top regulator has vowed not to overturn that regulation, but that is not enough protection for MAIA officials, who launched their ballot initiative “to cover all the bases,” according to spokesman Daniel Foley.

The issue of credit scoring was taken up by courts or legislatures in more than a half-dozen states in 2011. Last year, at least 27 bills aimed at curtailing the use of credit scores in pricing coverage were introduced to state legislatures, according to III.

And nearly all states have rules governing how credit information can be used, according to III.

Still, the debate over credit scoring goes on.

Reports show credit histories do help predict risk

Insurers argue that personal credit data helps them assess the risk that a driver will get into an accident and file a claim. This information in turn helps them set premiums.

People with poor credit are statistically more likely to file claims, according to III.

Insurers say that, when combined with other factors – such as where a policyholder lives, driving record, age and gender – credit scoring allows them to price policies so that those who are less likely to file claims pay lower rates and higher-risk policyholders pay more.

Critics, meanwhile, say that the scoring method is inherently discriminatory, with the highest rates being foisted on those who are least able to pay and certain ethnic groups suffering more so than others.

A 2004 report by the Texas Department of Insurance stated that African-Americans and Hispanics made up only single-digit percentages of the policies classified under the best credit score range but nearly one-third of the policies in the worst range.

Even the Federal Trade Commission has been unable to find a resolution to the credit-scoring debate.

In a 2007 report, the FTC stated that credit scoring is “likely to make the price of insurance better match the risk of loss posed by the consumer.”

But the federal agency could not determine exactly how the practice lessened risk and indicated that black and Hispanic people are rated as higher risks under credit scoring.

Barry says the III – a nonprofit organization that receives funding from the coverage industry – has found credit scoring to be “a very predictive rating criterion.”

But don’t expect the arguments over the practice to die down any time soon in states such as Massachusetts, Barry says.

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WILMINGTON, N.C., Aug. 23, 2011 /PRNewswire/ — (HomeInsurance.com) It was announced this week that HomeInsurance.com ranked in the top 100 on the Inc. 500|5000 list of fastest growing companies in America for 2011. The list, which is scheduled to be released online on August 24, 2011, includes the top 500 and 5,000 privately held companies in the United States.

“Making the top 100 was a goal of ours which we are thrilled to announce that we have achieved,” said Carlos Lagomarsino CEO of HomeInsurance.com. “This is a major achievement for our company given there are approximately 7 million privately-held firms in America.”

Inc. 500 was introduced by Inc. Magazine in 1982 in an effort to celebrate the fastest growing privately held companies in the United States. As an Inc. 500 honoree, HomeInsurance.com shares the ranks held by many notable Inc. 500 alumni such as Microsoft and Intuit.

HomeInsurance.com provides a unique shopping service to homeowners offering side-by-side homeowners insurance quotes under one roof. They currently offer a wide-range of savings options for homeowners including home/auto package discounts.

According to Lagomarsino, “The days of spending hours shopping for home insurance quotes with multiple agents are over. We’ve simplified the process.”

The leadership team behind HomeInsurance.com came together in 1992. Since the HomeInsurance.com website launched in 2007, the company has been growing at a rapid pace. The company represents some of the leading auto and home insurance providers in the country including Travelers, The Hartford, Safeco (a member of the Liberty Mutual Group), Progressive, ASI/Ark Royal and Foremost.

About HomeInsurance.com: HomeInsurance.com LLC is a BBB A+ rated insurance marketplace offering homeowners across the country comparative rates on home insurance from carriers rated ‘A’ or better by A.M Best Company. Customers benefit from the ease of online shopping backed by licensed insurance consultants.

SOURCE HomeInsurance.com

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