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Credit Insurance in a Loan or Mortgage


When purchasing a personal loan or mortgage, it is sometimes asked whether the buyer also wants credit insurance. Credit insurance may also be included in the loan. Credit insurance works by protecting the loan in the case that the individual cannot make payments. Most of the time, credit insurance is just optional and does not have to be purchased from the lender. According to the Federal Trade Commission, it is illegal for a lender to try to include credit insurance deceptively in a loan.

There are four main categories of credit insurance:
• Credit life insurance that can pay off either a portion or the entire amount of the loan in case the buyer dies.
• Credit disability insurance which is also called health and accident insurance, which will take over the payments for the loan in the case the buyer becomes injured or sick and is unable to work.
• Involuntary unemployment insurance which is also called involuntary loss of income which can make payments on a loan if the buyer loses his or her job and is not his or her fault, for example due to a layoff.
• Credit property insurance can protect personal property that is often used to secure a loan if the property is destroyed by any events such as accident, theft, or natural disasters.
Before deciding to have credit insurance for a loan from a lender, it is important to think about just what is necessary, whether there are any other options available, and the rates on the credit insurance. Sometimes credit insurance may not be necessary, or when some form of insurance is needed, an alternative policy may be more suitable.
Important questions to ask about the policy include:
• How much will the premium be?
• Is the premium financed as a part of the loan? Will the credit insurance increase the loan and will that lead to more interest?
• Can it be paid monthly rather than financing the whole premium?
• What is the difference in the loan payment without and with the credit insurance?
• Can the insurance cover the entire length of the loan along with entire amount of the loan?
• What are the exclusions and limits on the payment of benefits (what is and is not covered)?
• Is there any waiting period prior to the coverage becoming effective?
• If there is a co-borrower, what kind of coverage will that individual have and what will it cost?
• Is it possible to cancel the insurance policy? If possible, what is the refund policy?
Before signing loan papers, make sure to ask the lender about whether the loan includes voluntary credit insurance charges. It is important to inform the lender if credit insurance is not desired.

Lenders to Speed Up Insurance Payments

Lenders to Speed Up Insurance Payments

The Federal Housing Administration (FHA) stated on Friday, September 21, that approved lenders need to expedite hazard insurance payments to struggling families affected by Hurricane Isaac in Louisiana and Mississippi. 

On Friday, September 21, the FHA released a Mortgagee Letter that reiterated the important polices concerning the insurance handouts to homeowners trying to rebuild their damaged property after a natural disaster like a hurricane. 

The Letter was released because the U.S. Department of Housing and Urban Development (HUD) had begun to notice that some lenders were using the insurance funds to pay off outstanding mortgage balances.  These actions resulted in many homeowners failing to obtain the proper materials to rebuild their damaged homes and property. 

The HUD encourages lenders to do the following after a natural disaster:

1. provide copies of the hazard insurance policies when homeowners request the information

2. quickly hand over the insurance claim funds to homeowners when a repair plan has been authorized

3. follow strict guidelines so the insurance claims are filed and settled quickly

Louisiana Senator Mary Landrieu stated the following about the policies under the FHA: “This ensures that the actions of several unscrupulous mortgage lenders after Katrina will not be repeated during recovery from Isaac.  It is important that homeowners themselves receive their insurance proceeds so they can begin to rebuild their homes and lives impacted by this storm.” 

The FHA also stresses the fact that lenders need to quickly release funds for personal property, temporary living quarters, and multiple other expenses.  Unless the homeowner has signed a written consent, the lender cannot withhold the funds. 

Carol Galante, the FHA’s Acting Commissioner, states, “FHA Lenders are always required to follow our guidance and, particularly following a devastating disaster like Hurricane Isaac, it is important that FDA take affirmative steps to ensure that is the case.” 

Source: Department of Housing and Urban Development

 

Flood Insurance Rate Maps Undergoing Update

Flood Insurance Rate Maps Undergoing Update

 

On October 11, 2012, the Federal Emergency Management Agency (FEMA) announced that Flood Insurance Rate Maps (FIRMs) are going to be updated for people living along the coast in the Southeast.  The updated FIRMs will present a clearer picture of flood risks and provide flood hazard information for other areas as well.  
 
According to FEMA, floods are most commonly occurring natural disasters in the United States, and towns and cities along the coast are in the most danger of floods.  About 40 percent of the population in the United States lives in communities along the coast, and these communities need to know the risks of floods and steps they can take to protect themselves and their property.  
 
FEMA and other partners need to update the FIRMS because flood risk changes over the course of time.  All of the following can lead to new water and flow patterns: construction, environmental factors, shoreline erosion, and numerous other manmade and natural factors.  
 
FEMA will work with regional, state and local partners through the Southeast over the next couple of years to revise the FIRMs along coastal areas.  The new FIRMs will qualify as the most detailed and accurate flood risk data because of new technology and engineering tools.  
 
The state of Mississippi received completed FIRMS in 2007.  The updated counties include Hancock, Harrison, and Jackson.  In order to see the progress of the FIRMs for the FEMA Region IV Coastal Analysis and Mapping, you can visit the following website: www.southeastcoastalmaps.com.  You can find information for Alabama, Florida, Georgia, North Carolina, and South Carolina.  
 
Community planners can use the new information when planning activities.  Developers can use the information in order to make decisions where to build and how the construction might affect flood risks.  Insurance companies and real estate agents can use the new information to make changes to their rates.  
 
Source: Federal Emergency Management Agency

Tips for Easily Comparing Travel Insurance

Tips for Easily Comparing Travel InsuranceWhat is Travel Insurance?

Travel insurance is a type of insurance that is intended to cover medical expenses, financial hardships over travel suppliers and other losses that may incur while travelling. Travel insurance may be purchased by an individual travelling within his or her country or abroad; regardless of the location, the insurance policy provides coverage against any financial losses that occur as a result of travelling.

How do I Effectively Compare Travel Insurance Policies?

Effectively comparing travel insurance policies is a highly personalized endeavor; to get the best deal on a travel insurance policy you must explicitly understand what you need to cover on your trip. For instance, a single mother travelling with young adults will require different forms of coverage than a businessman travelling out of the country. The ability to match-up your specific needs and coverage points with an applicable and cost-effective policy is the primary goal of evaluating or comparing travel insurance packages.

The most effective way to compare travel insurance is to price similar policies (issued by different companies) with one another. You can effectively gauge prices and policy specifics by visiting travel insurance websites or review portals that clearly outline and contrast various travel insurance plans.

 Although these resources are available it is important to acknowledge that the best travel insurance policy is highly dependent or at least influenced by your specific situation. As a result, before comparing and contrasting travel insurance policies, it is crucial to ask yourself a few basic questions concerning your vacation plans: Am I travelling with my family? Are there young children with me? Am I staying abroad? How long am I travelling for? Can weather affect my trip? What medium of transportation(s) am I using?

These questions will invariably answer your inquiries regarding the inclusion of specific coverage options. For instance, medical coverage would not be warranted for a simple business trip in your home country, whereas insurance that provides a reimbursement for weather damages may be suitable for your upcoming cruise.

Types of Travel Insurance:

In addition to a traditional travel insurance policy, an individual can purchase temporary or cheap travel insurance, which is usually arranged at the time the trip is booked. Temporary or cheap travel insurance will provide coverage for exactly the duration of the trip.

This form of cheap travel insurance is less extensive than continuous travel insurance, which can be purchased from travel agents (work for travel insurance companies) or directly from travel suppliers, such as tour operators or cruise lines. That being said, a comprehensive travel insurance package, purchased from a travel supplier, will tend to be less inclusive than a policy offered by an insurance company.

Travel insurance will often provide coverage to an assortment of travels; student travel, leisure travel, adventure travel, business travel, international travel and cruise travel are all options or forms of travel that can be covered by travel insurance.

Defendants Sentenced for Staging Automobile Accidents

Defendants Sentenced for Staging Automobile Accidents


On November 27, 2012, the US Attorney’s Office for the Northern District of Texas announced that the final two defendants of a staged automobile accident scheme were sentenced.  Kara Lashon Collins and Stephanie Denise Moses were sentenced to 46 months and 12 months in federal prison.  Collins was ordered to pay $356,000 in restitution, and Moses was ordered to pay $95,000.  


The principal defendants, Frenchitt Su-Dell Collins and Alan Murray Robison, were sentenced to 15 years and 100 months in prison earlier in November.  Frenchitt Collins is Kara Collins’ husband and Robison’s half-brother.  Frenchitt was also ordered to pay $700,000 in restitution, and Robison was ordered to pay $203,000.  


According to court documents, the four defendants operated a scheme to defraud insurance companies like Hartford Lloyds Insurance Company, Travelers Insurance, GEICO Insurance Company, Nationwide Insurance Company, 21st Century Insurance Company, and Farmers Insurance Group of Companies.  People were recruited to stage accidents, and the defendants also stole identities from people including an Iraq war veteran and a school cafeteria worker.  The fraudulent insurance claims were submitted after the staged accidents and with fake identities.  


The defendants also created fake chiropractic clinics that submitted fraudulent medical records and bills to insurance companies.  The claims were submitted to private-pay property and casualty insurance carriers that settled claims on accidents solely according to fake documentation of property damage claims as well as fake medical records and bills.  The settlement checks were cashed by the defendants.  


Court documents further indicate that Frenchitt Collins and Alan Robison tried to tamper with a witness after they were arrested in May 2012.  The defendants tried to convince two witnesses to sign affidavits with information they believed would help the defense.  The witnesses would not sign the affidavits and turned over the false affidavits to the FBI.  


Source: Federal Bureau of Investigation

Transgender Surgeries Now Covered by SF Health Plan

Transgender Surgeries Now Covered by SF Health Plan

 

In a decision considered a major victory by transgender activists and outraged social conservative groups, the San Francisco Health Commission voted earlier this month to allow sex reassignment surgeries to be covered under the city's local government-funded universal health plan.

San Francisco became one of the first jurisdictions in the United States to approve a universal health coverage plan in 2006.  After being given the go-ahead by judges in 2008, Healthy San Francisco was implemented for residents of the city who met certain income guidelines and were able to show that they had not been insured or able to be insured for at least 90 days.

Some types of services were excluded from the coverage granted by the Healthy San Francisco program.  These services included all forms of elective plastic surgery, which included sex reassignment surgeries.

However, after a discussion with the San Francisco Board of Supervisors and the Transgender Law Center in San Francisco, Healthy San Francisco has now modified the rules to permit sex reassignment surgery for people whose biological sex is at odds with their subjective gender identity.  According to the Transgender Law Center and many transgendered activists, the surgery is in many cases a medical necessity to relieve negative physical and mental symptoms associated with gender dysphoria.

This doesn't mean that transgendered people who are using the Healthy San Francisco plan can start making plans for surgery yet, though.  Because the program was not yet set up to allow this kind of surgery, it will take some time for the city to determine how best to make these services accessible to the public.  Surgeries are expected to become available on the plan no sooner than in late 2013.

The move is a groundbreaking one by the Healthy San Francisco plan, which has been a source of city pride ever since it was implemented.

Some have expressed concern about the potential cost of performing genital reconstructions (known as “bottom surgery” by transgendered people and activists for transgender rights) and mastectomies or breast implants (called “top surgery”).  However, not all people who are transgendered find it necessary to have any surgeries, and many prefer to forego the more costly and risky bottom surgery in favor of having top surgery alone.

The city believes that within three years, it can have a full medical resource center available for transgendered people.  This medical resource center would include not only doctors who could help transmen and transwomen obtain the kinds of surgical and medical interventions they need, but also information on transgender health issues and counseling for people experiencing negative effects of gender dysphoria.

While San Francisco is the first city to make transition surgery government-funded, more American companies are including sex reassignment surgery as part of their company paid health insurance.  This has come after  recognition from medical professionals that transgendered people suffer significant consequences as a result of being unable to express their gender externally the way they feel it internally.

How are Insurance Groups Classified?

How are Insurance Groups Classified?What are Insurance Groups?

In the United Kingdom, car insurance rates are set, by what car insurance group your respective vehicle falls into. In essence, insurance groups are classification groups aimed to organize the delivery of car insurance in the United Kingdom. Each automobile is placed into a specific insurance group based on the vehicle’s engine size, fuel economy, safety ratings, repair costs, value and overall performance.

In total, there are twenty car insurance groups in the United Kingdom; in general, the higher the group (and vice versa), the higher the performance of the vehicle and the more you will have to pay for insurance. The classification system was installed to streamline the insurance pricing model; in the United States a risk assessment is evaluated for each insurance application, whereas in Britain, vehicles are simply placed into fixed brackets or car insurance groups to expedite the delivery of a car insurance rate.

How are Insurance Groups Classified?

Car Insurance Groups in the United Kingdom are established by the Group Rating Panel, which primarily made up of the Association of British Insurers and Lloyds Market Association. These individuals meet on a monthly basis to classify each new car that is marketed or produced in the United Kingdom. Although the rating system has a substantial influence in regards to the insurance rates in the United Kingdom and the majority of car insurance companies use the groups, it is not a compulsory classification system.

Buyers of new cars can find out what group a certain model is classified before they make a purchase; this enables buyers to have an idea of what their insurance costs will be before finalizing a purchase. In addition to the aforementioned characteristics associated with the vehicle—such as the car’s safety ratings, gas mileage, price and replacement costs—other factors, including driving history, age, credit score and education may be calculated to determine the appropriate insurance group.

Insurance Groups Classifications:

Low Car Insurance Groups: Cars that fall in this group typically have a score below 10 on the classification scale. These cars are considered low risk in regards to the likelihood of initiating a claim. Furthermore, automobiles ranked in the low car insurance group have low replacement costs, so even if an accident or claim was realized, the insurance group would face lower costs. Cars in this group are typically equipped with the latest safety features, including advanced alarm systems, VIN numbers and an immobilization system in the event of theft.

Midrange Car Groups: This car insurance group is home to vehicles with a score between six and 12. The majority of family-style cars, because of their generic repair costs and advanced safety features are grouped in this category. Cars in midrange insurance groups carry an average sale price, but hold their value well to generate an above average resell value. The ford Fiesta and Citroen Saxo are examples of midrange vehicles.

Above Average Car Groups: This group is home to the majority of sedans and smaller compact cars. Vehicles in this group possess scores between nine and 20, as a result of their larger engines, enhanced packages, such as trim and wheel enhancements and their high repair costs. The BMW 3 series and the Audi A3 are examples of cars in the above average group.

High Car Groups: This classification is home to sports cars and luxury vehicles; these cars typically have high performance engines, a high sales price and several add on packages. While the majority of these cars possess the most advanced safety features, the high cost of replacement for parts and repairs cancels out any positive ratings. Vehicles in this group typically fall between 18 and 20 on the car group scale and as a result, carry the highest insurance premiums of all insurance groups.

What You Didn’t Know About Dental Insurance Dental Insurance

What You Didn’t Know About Dental Insurance Dental Insurance

What is Dental Insurance?
A Dental insurance policy is a procedure within which an individual becomes eligible for the receipt of Dental benefits through the undertaking of Dental insurance coverage; Dental insurance is fashioned to cover the costs of a wide range of dental procedures undertaken by individual policyholders.
In many cases, Dental insurance is classified as a type of health insurance, which results in the structuring of Dental insurance policies, terms, and conditions to mirror those latent within the overarching health insurance policies offered – while both health and Dental insurance may be offered in tandem, Dental insurance is considered to be far less abundant with regard to its availability than its health counterpart.

Managed Dental Insurance vs. Fee-for Service Dental Insurance
A wide range of Dental insurance variables and parameters exist concerning the structure and components of a Dental insurance plan; a large majority of Dental insurance plans vary in accordance to the setting within which that plan is offered, the individual classification of the individual interested in coverage, as well as the type of coverage requested:


Managed Dental Insurance vs. Fee-for-Service Dental Insurance
Although the multitude of Dental insurance plans and policies are subject to variation with regard to the individual applicant, the 2 overarching types of Dental insurance plans – within which the vast majority of specialized insurance plans exist – range from general to private in nature:
General or managed Dental insurance policies are furnished on a universal basis, typically fashioned in a uniform manner; this means that in the event that the individual recipients do not wish to furnish supplemental payment for specialized coverage, those recipients will be required to conform with the terms and conditions expressed within a general Dental insurance policy
In contrast, a private Dental insurance policy – also known as a ‘fee-for-care’ policy – is fashioned with regard to an individual applicant, and uniquely structured in a personalized manner in order to meet the needs of an individual applicant
Dental Insurance Premiums
A Dental insurance premium is the amount of payment required by a prospective policyholder in order to finalize Dental insurance coverage; the determination of an insurance premium will result from a wide range of classifications and detail, including the range of network, the type of coverage, as well as the profile of the individual seeking coverage.

Dental Insurance Deductibles
A Dental insurance deductible is an expressed amount of payment required by an individual policyholder prior to the enactment of Dental insurance coverage – however, an Insurance deductible varies from an insurance premium. An Insurance premium is payment required by the policyholder in order to be eligible for coverage; in many cases, a premium is viewed in accordance to a fee for a service:
In contrast, a deductible is the amount of payment required by the policyholder prior to the furnishing of financial restitution enacted by the individual insurance provider
Oftentimes, the term ‘co-payment’ is used as a reference to a deductible – a co-payment furnished by an individual policyholder will be required in order to precipitate monetary coverage furnished by the individual insurance provider

Your Guide to Understanding Health Insurance

Your Guide to Understanding Health Insurance

What is Health Insurance?
A Health insurance policy is a procedure within which an individual becomes eligible for the receipt of Health benefits through the undertaking of Health insurance coverage; akin to the traditional ideology of insurance, a Health insurance policy allows for supplemental protection offered that exists as a contingency plan in the event of unforeseen circumstances. Upon the formulation of an individual Health insurance plan, the individual covered under the Health insurance plan in question will furnish payment in exchange for Health insurance coverage. 
Types of Health Insurance
Within the Health insurance field, there exist a vast expanse of options concerning the structure and components of a Health insurance plan; a large majority of Health insurance plans vary in accordance to the setting within which that plan is offered, the individual classification of the individual interested in coverage, as well as the type of coverage requested:


Managed Health Insurance vs. Fee-for-Service Health Insurance
Although the multitude of Health insurance plans and policies are subject to variation with regard to the individual applicant, the 2 overarching types of Health insurance plans – within which the vast majority of specialized insurance plans exist – range from general to private in nature:
General or managed Health insurance policies are furnished on a universal basis, typically fashioned in a uniform manner; this means that in the event that the individual recipients do not wish to furnish supplemental payment for specialized coverage, those recipients will be required to conform with the terms and conditions expressed within a general Health insurance policy
In contrast, a private Health insurance policy – also known as a ‘fee-for-care’ policy – is fashioned with regard to an individual applicant, and uniquely structured in a personalized manner in order to meet the needs of an individual applicant

Health Insurance Premiums vs. Health Insurance Deductibles
The following comparison is furnished in order to clarify the differences between these key terms:


Premium
A Health insurance premium is the amount of payment required by a prospective policyholder in order to finalize Health insurance coverage; the determination of an insurance premium will result from a wide range of classifications and detail, including the range of network, the type of coverage, as well as the profile of the individual seeking coverage.

Deductible
A Health insurance deductible is an expressed amount of payment required by an individual policyholder prior to the enactment of Health insurance coverage – however, an Insurance deductible varies from an insurance premium. An Insurance premium is payment required by the policyholder in order to be eligible for coverage; in many cases, a premium is viewed in accordance to a fee for a service:
In contrast, a deductible is the amount of payment required by the policyholder prior to the furnishing of financial restitution enacted by the individual insurance provider
Oftentimes, the term ‘co-payment’ is used as a reference to a deductible – a co-payment furnished by an individual policyholder will be required in order to precipitate monetary coverage furnished by the individual insurance provider

Professional Indemnity Insurance

Professional Indemnity InsuranceWhat is Professional Indemnity Insurance?

Professional indemnity insurance provides protection or cover against claims brought against the policyholder in situations revolving around professional negligence. Professional indemnity insurance is primarily obtained by business professionals who offer and provide advice to their customers. In a general sense, there are two types of businessmen who purchase professional indemnity insurance: voluntary and involuntary.

The involuntary business or businessman is required to purchase professional indemnity insurance, in accordance with federal or state legislation. These individuals typically belong to accounting or financial services firms, transport industries, information technology firms, consulting businesses, charitable organizations, building professionals or architects.
Medical professionals and legal professionals are examples of individuals who may voluntarily purchase a professional indemnity insurance policy. There are three primary types of professional negligence–negligent error or negligent omission, error or omission and civil liability—and each will be discussed below:

Types of Professional Indemnity Insurance:

Negligent Error or Negligent Omission: This type of professional indemnity insurance protects the policyholder against any loss or circumstances incurred solely as a result of their negligent act, error or omission in carrying out the holder’s everyday business.

This form of professional indemnity insurance is the narrowest form of cover.
Negligence Act, Error or Omission: This form of professional indemnity insurance protects the policyholder by providing coverage against any losses or circumstances arising solely as a result of their negligent actions, errors or omissions in carrying out the policyholder’s business.

Civil Liability: The majority of professional indemnity insurance policies will extend beyond simply the coverage examples offered above to provide indemnity for any civil liability. This form of professional indemnity insurance provides coverage against an assortment of actions, including all libel and slander, as extensions to the specific policy wordings.

Furthermore, civil liability professional indemnity insurance provides coverage in situations where a breach of contract occurred. All civil liability professional indemnity insurance policies are attached with an operative clause, which is both wide and fairly complex. As a result of the operating clause, there is typically an extensive list of exclusions listed under such policies, in order to exclude certain liabilities that are covered elsewhere. If such a list was not attached to this form of professional indemnity insurance, things like the Public Liability and Employers Liability may be overlapped in regards to coverage.
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