What I want to know is: Who owns the SUV that he was driving? And why hasn't that person been arrested as well? Any time we buy a vehicle, we have to prove we have licenses & insurance to cover it. The illegal drivers aren't buying them, so it stands to reason that they are being allowed to drive them by the owners.

According to the latest statistics, 1/3 of the cars on the road in Colorado don't have insurance on them. When I changed carriers, the agent was thrilled because of the umbrella policy that I took out. (He gets a really good commission on them, the higher they are.) He was also shocked that I knew the difference between UMBI & UMPD, & requested both coverages. If I'm hit by an uninsured driver or vehicle, I don't want my collision coverage involved. Not only is it a higher deductible, but it generally counts as an 'at fault' accident, where the UMPD coverage has a lower deductible, & makes the coverage liability. So I carry millions in coverage to defend against every slug that thinks a lawsuit is a job & wants to make as much as possible. I also have instructed them not to pay a medical claim, if we are in an at fault accident, without an I.M.E. I know how the specials are built up. And how soft tissue injuries can be faked.

I would no more let a driver who isn't on my policy drive than I would fly to the moon. I don't think any other vehicle owner would allow their vehicle to be used by an illegal driver if they could be charged for it. The only way out that I could see would be if the owner could PROVE theft of the vehicle. Make the owners responsible, & they wouldn't let unauthorized drivers have them.

Maybe that way, children & legal drivers on the road would have a little less to worry about. Colorado is doing something to try to slow it down. A law started recently that if an illegal driver is driving a car, that car is automatically towed to an impound lot. A lot of people were yelling about the cities making a profit from it, but I don't care. If it stops the loaning of vehicles to people who can't legally drive, it's a good thing.

100% Health Coverage - Microsoft’s U.S. health benefits include medical, dental, prescription drug, vision, and disability coverage. Our most comprehensive medical plan provides 100 percent coverage for employees and covered dependents, with no deductible or payroll contributions. We also offer a Smoking Cessation program, Autism coverage, and other health perks.

Health Club Membership - Microsoft offers a paid health club membership, In the Puget Sound area, health club memberships are available at the well-appointed PRO Sports Club, basically a country club without the golf course. Buses run regularly from campus to the PRO Club, and it's right across from campus. You can also choose the Columbia Athletic Club. In Dallas, I am a member of 24Hour Fitness.

Paid Weight Loss Program - We also offer a paid 12-week weight loss program including medical oversight, individual counseling with a registered dietician, and personal fitness training customized to each participant's needs, as well as ongoing support group meetings addressing lifestyle modification and education.

401(k) plan and an Employee Stock Purchase Plan - You are eligible for both immediately, and don't have to wait to vest. You are vested 100 percent immediately, including the 401k company match of $0.50 for every pre-tax dollar (up to a 6 percent contribution rate) up to the IRS maximum

Paid Maternity/Paternity Leave - At Microsoft, new mothers are eligible for 20 weeks off following childbirth: 12 weeks paid at 100 percent of base salary, with the option to take an additional eight weeks unpaid. This time off is available immediately upon hire. Parental Leave is available for new fathers and employees who care for a newly adopted child or newly placed foster child. Parental Leave may be taken for up to 12 weeks, with four weeks paid at 100 percent of base salary and eight weeks unpaid.

Adoption Assistance - Microsoft reimburses up to US$5,000 per child for adoption related expenses.

Childcare Discounts -Tuition discounts of 20 percent are available with nationwide providers, for infants through school-age children. 

Family Backup Care -The Backup Care Options program provides center-based or in-home care services when employees experience a temporary breakdown in their normal care arrangements. Whether their infant is mildly ill, their child's school is closed, they need to travel for business, their spouse or same-sex domestic partner (SSDP) is recovering from an injury, or a parent is recovering from an illness, resources are available 24 hours a day, seven days a week. The program helps secure care at a low cost when employees need to get to work.

Prime Discount Program - Employees and their immediate family members can participate in a Microsoft-paid discount program which provides significant nationwide savings—up to 25 percent—on multiple goods and services, including restaurants, childcare, travel, spa services, dry cleaning, florists, pet care, home repair, and entertainment. Additionally, Microsoft subsidizes area attractions, such as local zoos, museums, and amusement parks.

Tuition Assistance - The Tuition Assistance Plan offers financial assistance to eligible Microsoft employees for business-related tuition expenses. Employees are eligible for up to US$5,250 per calendar year for undergraduate coursework and up to US$7,500 per calendar year for graduate-level coursework.

Company Store - Employees can purchase up to US$1,200 per fiscal year in substantially discounted Microsoft products through the Company Store (located on campuses nationwide and online).

Employee Giving - Microsoft not only matches financial donations up to US$12,000 per year per employee, but also matches the time that employees volunteer in the community—donating US$17 per hour to the eligible organizations they serve. The Volunteer Connection system helps employees find volunteer opportunities that align with their interests, skills, and availability.

Free Beverages -Employees at Microsoft have unlimited access around the clock to a wide variety of beverages. With Starbucks machines in all campus kitchens for fresh-brewed coffee on demand, as well as juice, chocolate milk, and soda (both Coke and Pepsi products), our employees never go thirsty.

On-site Convenience Services -Employees do not have to take time out of their busy day to run to the dry cleaners or post office, or to stop at the grocery store on their way home. With lunch delivery from a campus café, on-site personal shipping, free home grocery delivery, on-site dry cleaning and laundry services, convenience shopping, and dinners to go, employees can enjoy time-saving conveniences.

Please note: This is my list of some of the US Benefits, and do not apply to benefit programs outside the US, which may differ. This is not an official Microsoft communication.

I found some information on this website:  Resolve

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Contact your senator about Supporting Coverage of Infertility Treatment:

https://secure2.convio.net/res/site/Advocacy?cmd=display&page=UserAction&id=132

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Contact your representative about Supporting HR2892--Infertility Treatment Coverage Legislation:

https://secure2.convio.net/res/site/Advocacy?cmd=display&page=UserAction&id=159

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Here is a link to the Bill:

http://www.govtrack.us/congress/bill.xpd?bill=h110-2892&tab=summary

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Some reading for friends and family about infertility:

fact_sheet_6_family_and_friends

The ADA recognizes infertility, why don't the insurance companies?  They claim having children is a lifestyle choice?  Well it is not my lifestyle choice to be childless...Anyway, I'll get off my soap box for now...but only because I'm tired.

Thanks!  I appreciate you taking the time to check this out.

Dangling into the Gulf like a continental afterthought, Florida has always been Mother Nature's favorite American target, absorbing eight named storms in 2004 and 2005 alone. The state has gotten better at preparing for hurricanes, with stricter building codes and well-rehearsed evacuation plans. But it's still dangerously exposed — not only to the elements, but to financial ruin. It's got the nation's most dysfunctional property insurance market, a byproduct of life in harm's way. Fitch's ratings agency concluded in March that if a big storm hits Florida, "the fragile market could effectively collapse."

Ike could well be a Gustav-like bust rather than a Katrina-like disaster. But eventually, disaster will visit the peninsula, and it's still not clear who's going to pay the tab. "It's going to be a financial nightmare," says Cecil Pearce of the American Insurance Association. "Florida is the nation's basket case."

It's not that Florida's vulnerability is a secret. Florida homeowners pay some of the nation's highest insurance premiums; in a recent poll, despite a housing crisis, an economic crisis, a water crisis and an environmental crisis, Floridians named those premiums their number-two concern about the state's future, behind property taxes but ahead of jobs, education, health care and the dying Everglades.

Since Hurricane Andrew put most Florida insurers out of business and scared several national insurers out of the state, the state government has helped to hedge the risk of hurricanes. It provides subsidized insurance to 1.3 million high-risk homeowners who can't get private policies, an increase of more than 50% in just three years. It also has a Hurricane Catastrophe Fund that provides subsidized reinsurance to the state's private firms.

But a series of studies have made it clear that if the Big One or even a Pretty Big One strikes, Florida is going to have very serious problems. The state-run insurance firm and the Catastrophe Fund have just a few billion dollars on hand, so a major storm would force both entities to float massive bond issues in an unfavorable market, and to make up their shortfalls through gigantic assessments on policyholders. A House committee recently warned that the state would have "extreme difficulty paying its obligations" after a 100-year storm, and that premiums on nearly every property, car and business could skyrocket. A report for the state Office of Insurance Regulation found that even a 50-year storm would cause extreme financial stress, especially given the current credit crunch.

Industry actuaries say the problem is simple: Florida's insurance rates, high as they may be, are not high enough for a state with an estimated 25% of America's high-risk property. Reinsurance rates are soaring, and private insurers like State Farm and Allstate have scaled back in Florida, forcing an additional 500,000 customers into the state pool. "For some areas in Florida, insurance companies could not obtain reinsurance at any price," Insurance Commissioner Kevin McCarty recently told Congress. And last year, Republican Governor Charlie Crist pushed through reforms to decrease premiums, a politically popular move that will create even more pressure if disaster strikes. "I get the concerns," Crist recently told me. "But we're not going to stand for gouging."

The gouging fears are understandable; McCarty told Congress that some insurers have insisted on 25% profit margins, while using computer models that overstate risk. But no one denies that the risk is real: it's been 80 years since a major storm hit a major Florida city, but hurricane researchers have calculated that the next one could cause as much as $150 billion worth of damage. And Crist's reforms, while reducing premiums, included other changes that increased the risk that taxpayers and policyholders will have to bail out the Cat Fund. "The risk was removed from the insurers' portfolio and is now being supported by the people of Florida," McCarty explained.

That's why Crist and just about every other Florida politician is pushing for a national catastrophe insurance fund, which would shift some of that risk to federal taxpayers. But the idea is not so popular with other states, for the obvious reason that other states don't have as much risk. Florida has spent the last 80 years ignoring its vulnerability, developing its floodplains and shorelines, selling the dream of the Sunshine State to northerners and foreigners. But the day of reckoning will come.

Hopefully it won't come Tuesday.

http://www.time.com/time/printout/0,8816,1839219,00.html

Bargaining for Power in Health Care "Reform" Bill

Health Plan and other lobbyists today told CCHC that the Super Broker is still in the bill, along with myriad other bad stuff, like the bureaucratic, all-controlling Health Care Transformation Commission and payment reform, which is essentially the imposition of price controls. We understand that Sen. Berglin wants the Super Broker for the purpose of transferring subsidy program funds from the State to the health plans.

However, it's clear that nobody else wants the Super Broker. One lobbyist told me, in so many words (paraphrased): "Nobody wants it. The Chamber of Commerce doesn't want it, the Governor's office says they no longer need it, the insurance agents don't want it. Why is it in the bill still?"

At which point, CCHC suggested that it's being used merely as a bargaining chip by the Senate author, Sen. Linda Berglin, with the Governor. The lobbyist concurred...perhaps the Senator is using it to get the financial/budget issues to slide in her direction. That's one good reason the Governor shouldn't put anything in the bill he might not want to become law.

On the other hand, one seasoned lobbyist said that a policy bill (SF 3099) is unlikely to be signed into law. That would be good news, but there's no guarantee, so remind your legislators and the Governor what you think of the "Super Broker" proposal. The cast and crew of two off-season committees (the Governor's Health Care Transformation Task Force and the Legislative Health Care Access Committee) meant it when they proposed these ideas. They want them to become law. Governor Pawlenty is all that stands in the way of the Super Broker and socialized medicine.

Will Your Private Medical Records be "Dumped" into the Hands of Government?

In 2002, the public became outraged when CCHC exposed the Minnesota Department of Health proposed rules to require every health plan and every hospital to ship all the private details of your private medical records to the government. It made front page news, and the rule was dropped several months later after well-publicized legislative hearings. That said, the 1995 LAW allowing Health Department access to all your medical records still exists, a point we're never going to let be forgotten.

Now, the health care reform bill, SF 3099, proposes to require all health plans to ship your private medical records (right down to all the details of each encounter between patient and doctor) to the Health Care Transformation Commission, a $12 million "super agency"of political appointees, for data mining, analysis, and anything else they choose to use it for...now and in the future.

Proponents of rationing and price controls could use your data to propose certain types of people not receive care, or to propose legislative and other policies that target individuals for intervention strategies, including in the future, genetic manipulation. Don't forget to sign our petition against Minnesota's DNA warehouse, genetic registries and unconsented genetic research. (Please do not sign it twice. Thank you.)

Let legislators and the Governor know what you think about SF 3099's "Data Dump" (the sharing of your private medical"encounter data" with a group of political appointees).

Who to Call - Bill Busters!
1) Contact the Senators and Representatives that represent you.

• Senate Information: 651-296-0504
• House Information: 651-296-2146
• SENATE EMAIL: sen.firstname.lastname@senate.mn
• HOUSE EMAIL: rep.firstname.lastname@house.mn
• Who Represents You?

2) Contact Governor Tim Pawlenty: 651-296-3391; 1-800-657-3717; tim.pawlenty@state.mn.us

As Hurricane Ike barrels toward South Florida, Americans can be sure they won't have to endure another catastrophic failure of a hurricane protection system. That's because South Florida doesn't have a hurricane protection system. As South Floridians like to say: Ay dios mio! Ike is now scheduled to pass just south of Miami as a Category 4 storm; National Hurricane Center researchers recently concluded that a Cat 4 hitting Miami could cause $70 billion in damage. To use another South Florida-ism: Oy vey!

Dangling into the Gulf like a continental afterthought, Florida has always been Mother Nature's favorite American target, absorbing eight named storms in 2004 and 2005 alone. The state has gotten better at preparing for hurricanes, with stricter building codes and well-rehearsed evacuation plans. But it's still dangerously exposed — not only to the elements, but to financial ruin. It's got the nation's most dysfunctional property insurance market, a byproduct of life in harm's way. Fitch's ratings agency concluded in March that if a big storm hits Florida, "the fragile market could effectively collapse."

Ike could well be a Gustav-like bust rather than a Katrina-like disaster. But eventually, disaster will visit the peninsula, and it's still not clear who's going to pay the tab. "It's going to be a financial nightmare," says Cecil Pearce of the American Insurance Association. "Florida is the nation's basket case."

It's not that Florida's vulnerability is a secret. Florida homeowners pay some of the nation's highest insurance premiums; in a recent poll, despite a housing crisis, an economic crisis, a water crisis and an environmental crisis, Floridians named those premiums their number-two concern about the state's future, behind property taxes but ahead of jobs, education, health care and the dying Everglades.

Since Hurricane Andrew put most Florida insurers out of business and scared several national insurers out of the state, the state government has helped to hedge the risk of hurricanes. It provides subsidized insurance to 1.3 million high-risk homeowners who can't get private policies, an increase of more than 50% in just three years. It also has a Hurricane Catastrophe Fund that provides subsidized reinsurance to the state's private firms.

But a series of studies have made it clear that if the Big One or even a Pretty Big One strikes, Florida is going to have very serious problems. The state-run insurance firm and the Catastrophe Fund have just a few billion dollars on hand, so a major storm would force both entities to float massive bond issues in an unfavorable market, and to make up their shortfalls through gigantic assessments on policyholders. A House committee recently warned that the state would have "extreme difficulty paying its obligations" after a 100-year storm, and that premiums on nearly every property, car and business could skyrocket. A report for the state Office of Insurance Regulation found that even a 50-year storm would cause extreme financial stress, especially given the current credit crunch.

Industry actuaries say the problem is simple: Florida's insurance rates, high as they may be, are not high enough for a state with an estimated 25% of America's high-risk property. Reinsurance rates are soaring, and private insurers like State Farm and Allstate have scaled back in Florida, forcing an additional 500,000 customers into the state pool. "For some areas in Florida, insurance companies could not obtain reinsurance at any price," Insurance Commissioner Kevin McCarty recently told Congress. And last year, Republican Governor Charlie Crist pushed through reforms to decrease premiums, a politically popular move that will create even more pressure if disaster strikes. "I get the concerns," Crist recently told me. "But we're not going to stand for gouging."

The gouging fears are understandable; McCarty told Congress that some insurers have insisted on 25% profit margins, while using computer models that overstate risk. But no one denies that the risk is real: it's been 80 years since a major storm hit a major Florida city, but hurricane researchers have calculated that the next one could cause as much as $150 billion worth of damage. And Crist's reforms, while reducing premiums, included other changes that increased the risk that taxpayers and policyholders will have to bail out the Cat Fund. "The risk was removed from the insurers' portfolio and is now being supported by the people of Florida," McCarty explained.

That's why Crist and just about every other Florida politician is pushing for a national catastrophe insurance fund, which would shift some of that risk to federal taxpayers. But the idea is not so popular with other states, for the obvious reason that other states don't have as much risk. Florida has spent the last 80 years ignoring its vulnerability, developing its floodplains and shorelines, selling the dream of the Sunshine State to northerners and foreigners. But the day of reckoning will come.

ServeGuru, a leading BPO in Hyderabad,India is in the business of Credit,Collections,BPO Services.Most of our offerings are to Top Telecom,Banking,Insurance,Retail and other Industries.

We have the process of selecting all levels of candidates for our new company. Our nest post will have the various jobs vacancies in India in all the functions of Sales,Marketing,Advertising,Finance,Customer Service,Human Resources,HR,Legal etc.

Cheers

Here’s the story… One week ago today I went quad riding. Had a blast! We took a long trail up through Roger’s Trough and it was gorgeous. Saw some young deer – only 30 yards away.

One guy caught and killed a rattler – we know what he’s having for dinner…

And I broke my arm. Short version: already tired, on unfamiliar ground, I got going too fast on a slight downhill. I braked…hit loose gravel and slid. I wasn’t able to regain control, and slid right off the edge of a small, steep ravine. The quad took it well… I didn’t.

I'll spare you the pics of the broken arm... and the colorful bruises... and the swelling.

Luckily I kept my seat and did not go sailing off the bike – even though, by all rights, I should have. The impact snapped my right wrist, and I sat there, more calmly than those around me, saying, “ummm…I broke my wrist.”

We got the quad out of the ravine, and I rode another mile or two – slowly… one handed. My right arm pressed to my body, my left reaching across to handle the throttle. The road got too rough for me to manage, and with another 15 miles to go, we left my quad with some hunters and I clambered onto the back of another for the ride out. Let’s not even discuss how un-fun 15 miles of “off road” terrain is when your broken wrist is wedged between your chest and someone else’s back. Every bump, jiggle and jostle was torture.

The guys have a new level of respect for my “toughness” – since most of them admit they’d never have done what I did; they’d have sat and waited for someone to go fetch a jeep or something. Hell, I just wanted out of there, ASAP, and to the ER before I passed out or puked.

The ER visit was typical - $250 bucks to tell me I had a broken arm, wrap me in a splint and send me home. It seems, ERs don’t set bones any more.

Finding an orthopedic doc who would take my insurance, and who had an appointment open within the next decade, and who was willing to see someone whose fracture would require surgery, was not an easy task – especially coming off a holiday weekend.

Surgery is scheduled for Monday… I get a couple of nice metal plates and some matching screws in my arm… Oh, and from now on, I get to set off metal detectors… tee hee. Meanwhile, I still have a glorified Ace bandage securing those lovely loose bone pieces. Let’s talk pain, hmmm?

Work has been… well… bad. With the pain, fogginess from pain meds and having only one arm – I’m basically unable to do a lot of writing, can’t do it fast enough, etc for their schedule (let’s not discuss how long this has taken…and how much editing…). So, I’m knocked down to half time/half pay until this is over and I have two hands again. I would have been better off if they had just laid me off… As it is, the list of reasons why this sucks is nearly endless.

Then I find out that my insurance is not quite what I thought. My choices were pretty miserable anyway, and I opted for the decent, slightly expensive, but not going to kill me coverage. The kids are on their Dad’s plan, so they weren’t part of my insurance calculations. In essence, I have an 80/20 plan. Which, with my California insurance, meant I paid 20% and I had an annual out of pocket max of $5000, not including copays. Period. Pay 20% of all major medical. Reach $5000 – that’s it. Pay no more. And they bill you for your portion.

This is not California. And this plan is different.

It’s 80/20 alright. Up to the amount of the annual max. If it goes over that amount, you pay the whole annual max amount – in this case, it’s not an annual out of pocket maximum, but a deductible. So, I’ve got $5000 I have to cough up – since payment is due in full, in advance. Here’s the kicker: If this had been less than $5000 total, I would be paying a flat 20%. Since it’s over, I’ve got the whole fucking amount to pony up. What the fuck?

Combine that with lost wages and this is one fucking expensive arm.

If I’m lucky, I’ll have a regular cast, and use of my fingers, a week after surgery. If not… well, I’ll think about that when and if I need to.

As it stands – there will be a week in a surgical splint, then 6 to 8 weeks in a regular cast. That’s if everything goes well. Guess I’ll be hunting in a cast, huh? I am not about to give up a primo deer tag!!! That’s October 31, so… It should be fairly well set by then. LOL

And so… I’m learning that I am, in fact, quite ambidextrous. But there are some things that are very hard to do one handed - at this point, my right is pretty useless – I can’t even use my fingers, or use the arm to hold things. Basically, everything from the elbow down is just a painful thing getting in the way.

Try fastening a bra with one hand. Or putting on jeans… Buttoning anything… Washing your hair… Yeah… The list goes on…

So, that’s all the news that’s fit to print. I’m sure there will be more… And now y a know what’s up with me.

Okay now for a crash course in this subject. The main purpose and foundation for Life Insurance is off course protection. When a person is insured, he/she pays a premium that in the event of Death/Total Permanent disability (TPD) of the Assured, the Insurance company will pay the agreed amount to the Family of the Assured. Off course this is oversimplified. There are many plans in an insurance Company and each plans have different sets of criterias, conditions and terms.

Now there are 2 major type of plans: Life and Endownment

Life plans are geared towards protection. It also has a savings element. Premiums are paid for a set number of years(e.g. 20 years) but coverage of the policy will be lifetime, that is till as old as the person gets. In the event of TPD and death, the money will be paid out. There is no maturity period, the money will continue to grow until it is fully paid out in the event of Death/TPD. The assured has the option to withdraw the money but the sum paid out will not be as great. For this type of policy it is much better to leave it untouch and reserve the money for your loved ones.

Endownment plans are geared towards savings. It also has a protection element. The insured is covered against Death and TPD as well but only until the policy matures. This leaves the person unprotected once the policy has stopped. The main point about endownment is the pay-off, how much money you need by a set number of years.

Insurance plans are really important, especially in the society we're living in nowadays. Some people cannot purchase it due to financial reasons which i understand very well. However it is because of tight financial situations that we need it all the more. There are off course some who choose not to buy because of religious reasons which i find a bit ridiculous.

If you need help at looking and comparing plans or just plain curious, please e-mail me: zac_lim_1@yahoo.com

Also if you want me to plan some policies for you, i'm happy to do it. And i'm NOT getting paid! Seriously! Free Advice, Free Tips, Free Comparison. (Limited to Brunei, Malaysia and Singapore)

:D

However, I got a benefits statement from the insurance company for the pathologist. It indicated that I had only met $72 or so of something called "in-hospital deductible". I've been having problems for months trying to figure out how much of my deductible I had met. The EOB (explanation of benefits) from the insurance company didn't always show it, and sometimes it conflicted. I'd call and I'd get a different answer each time. I thought I had a $1500 deductible, then I was told I had a $1500 deductible for BOTH in-network and out-of-network providers. Now this "in-hospital" deductible showed up, so I called yet again.

Turns out that I only have one $1500 deductible for everything -- in-network, out-of-network, everything. However, the system has been applying charges to these other imaginary deductibles, which means I've been paying the difference. I have been assured that Blue Cross/Blue Shield will get all of my claims reviewed and reprocessed in the next few days, but what a scary thing. With a $63K hospital bill staring me in the face, the last thing I need is a screw up with the insurance company. When this gets all settled, I'm going to ask for an accounting of all my claims -- what was applied toward the deductible, what was paid to the provider and what I should be liable for. I can't believe that I am the only insured person this has happened to and I wonder if there's not an insurance board or some one that ought to be providing some oversight. I'm always cautious about being a whistle-blower, though, so we'll see how BCBS handles this situation. The good news is that I probably will get at least $1500 back because I've met my imaginary "out-of-network" deductible.

On another subject, I took my 7th dose of MTX last night. As usual, slept like a baby. I didn't get the headache, but my stomach was a little queasy this morning when I woke up. Might have been the XXTravaganza Pizza I ordered last night since I didn't feel like eating leftovers or any of my homemade soups.

Thanks for checking in.

Update: I have fallen in love with business reporting. I thought I was cut-out to be a general reporter, but then one can always change one's mind when ur 23.

I have also been feeling extremely proud of myself for filing a few sensible stories on the insurance industry. I'm wondering if I should start a "Insurance for dummies" series on this blog. Because I honestly felt so dumb, when I started three months ago, in this line.

I have been in the midst of production and nursing my cold and throat pain, so my blog has suffered neglect.

I have approved and posted most of the comments, I have received, but I am yet to reply to any of them. Please, bear with me kind readers and I will reply to everyone of your gracious posts ;-)

Today, was a comedy of errors. Yesterday, I had taken leave, because I was feeling too sick to kick myself out of bed. Today, as I was feeling better, after feasting off the cooking of my mom-in-law, I got ready for office. Battling the rain and the harsh winds, I arrived soaking wet in office, only to find out that I didn't have office today.

Shucks!

That being said - I had a sort of bad day.  It started when I had to go to WALMART.  I HATE WALMART.  I have literally gone MONTHS without stepping one foot inside a Walmart before.  It was kind of nice.  My sister - on the other hand - lives there.  But I had to get sugar cookie dough ad I knew that they would have the break and bake stuff. 

I got 3 packages of that stuff and took them to my mother.  Since I had to be at he quilt guild meeting today (OK, so I didn't HAVE to be there but I wanted to be there) Mom baked the cookies for me and iced them.  They were for Emilee's Spanish project report.  Extra Credit if you can feed the teacher I guess.  Anyway, so Mom did that for me.

From Mom's I went to Walgreen's to see about my prescriptions.  I find that 8 AM is the best time to get there.  They are not normally busy yet, because most doctors offices are just then opening their doors.  Well, After my Rheumatologist appointment from hell, I had dropped off my RX for Lyrica dose increase, Klonopin increase, and for a refill on the Cymbalta.  They were busy and having computer issues so I told them I'd be back in the AM.  So, here I am back in the AM and was nicely explained the reason for this and that not going through the insurance.  OK, so I am hurting, but being nice.  Really, I was.  I told the tech that I wanted to cancel the RX for the Cymbalta and Lyrica anyway because I am firing my Rheumy and seeing one in Springfield, MO.  She looked at me and nodded.  She's heard about the new one and heard GREAT things of this new doc.  So, I am glad to hear that.  I did have to pay full price for the Klonopin.  It is not covered by my insurance because of the government not covering any anti-anxiety drugs for people on Medicare.  Not Medicaid, but Medicare.  UGH.  Don't get me started on that.

I left the Quilt Guild meeting right after the program started, because i had to go to Mom's and pick up cookies and drop them to the High School by 11:36 AM.  I then rushed back and got to see the last few minutes of Helen Squires' presentation.

After the Quilt Guild meeting I went through the drive through at McDonalds.  I just LOVE getting a double HB without Onions and a large Sweet Tea.  Well, the HB sucked.  I don't know what they sprinkle on them but it was way WAY too much.  I gagged on it.  Threw it away.  I should have taken it back and made them make me another one!  But I didn't.  I hurt and didn't want to get out of the truck anymore than I had to.

I then 'sucked it up' and went to my mothers.  She had told me yesterday that she wanted me to go with her to drop off these applications.  Seriously, my Mom just needs to grow up and deal with all this crap in her life herself.  I have NO PATIENCE for those who are helpless. 

I am not helpless.  I am proactive in my health care!  I hurt, I take pain meds, I am always researching new treatments in hopes for a cure.  I am not helpless.

So I got to Mom's and she was ASLEEP on the couch still in her nightgown.  She tells em that she doesn't feel like going anywhere and that she was hurting.  OK, I do understand that. 

So I left there and went to a garage sale at a church down the road.  Then I went to a thrift store and them to home.  I was actually looking for jeans for Donald.  Didn't find any.

From home I had to go pick up Donald from work at the Cheney's.  Went BACK to Walmart to the bank inside there and also to buy some splitter-thingee for the TV.  <whatever>

Then stop for gas, and realized that OMG!  We can't afford bull riding this weekend!  Well, then I realized that I didn't take out all the $ form the bank that i normally would when I got my disability check.  So <Phew!> we went to the bank and the bull riding is back on track for tomorrow night.

While in line at the bank I get this phone call from Justin - who is at home with Emilee.  Barbie - the pig - is out of her pen and Emilee can't seem to get her back into the pen.  I told Justin we had a tomato on top of the microwave and to get it and let Em give it to her.  It worked like a charm.  Barbie is back in her pen.

We got home and I got started browning hamburger for tacos.  Donald is on the roof doing something and Justin is watching TV.  I have Emilee helping me with Supper.  I just COMPLETELY forgot that she had Saturday School tomorrow and again on the 20th.  I am so glad she reminded me. 

So there is my day.  It may sound mundane to some.  But it was a busy day for me.  Made worse - of course - by my pain and frustration.  Now Zack - the big dog - is outside complaining about something.  He doesn't complain often.  I just looked.  Barbie is still in her pen, so it's probably just deer he's barking at.  Or a tractor.  He hates tractors.

Another form of insurance fraud that happens more often than you think is when people set fires to their own homes. This might seem like an incredibly stupid idea especially since it is a criminal offense if you get caught, but it is been done anyway. It could be because they are behind on their mortgage payments, a dispute over the home because of a divorce, and of course, the ever popular mental illness. People can talk themselves into doing some really stupid and desperate things when they are under extreme emotional stress for many reasons.

Insurance companies always have the cause of fires investigated in order to prevent being a victim of fraud themselves. They will do this especially if the circumstances of the fire appear suspicious. It is really difficult for anyone to get away with arson these days because of all of the advanced methods available to be able to track the cause much more easily. Although people do get away with deliberately setting fire to homes sometimes, it is not very often and one should count on it.

Many times the physical evidence is what can give an arsonist away. When accelerants are used to start a blaze, they leave residue behind that can be pretty easily identified. Using an accelerant like gasoline is one of the most common methods someone will use to start a fire quickly. Generally they will soak as many things as they can to ensure the fire starts and continues to burn and this is usually their biggest mistake.

Explosives can also be used to start fires, but an arsonist such as a homeowner wishing to defraud the insurance company, would not normally use this method because of the danger involved for them selves and it would require some skill and research to learn how to carry it off. Gasoline or shorting out some wiring is much simpler.

Insurance companies often get a bad wrap because it sometimes seems that they are only out for themselves and try to pay out as little for claims as they possibly can. People getting away with defrauding the insurance company might have something to do with insurance companies always being on the defensive and making it more difficult to collect on a claim of almost any kind.

Dorothy: Now which way do we go?
Scarecrow: Pardon me, this way is a very nice way.
Dorothy: Who said that?
[Toto barks at scarecrow]
Dorothy: Don't be silly, Toto. Scarecrows don't talk.
Scarecrow: [points other way] It's pleasant down that way, too.
Dorothy: That's funny. Wasn't he pointing the other way?
Scarecrow: [points both ways] Of course, some people do go both ways.

The push to reauthorize the National Flood Insurance Program (NFIP) is on and I'm feeling a little frisky. This particular post has been in the making since June (actually early March) much to my partner Nowdy's occasional consternation with me for not helping others see it. However, the creativity it takes to author posts comes in streaks for me, especially when the subject matter is complicated.  I can uncomplicate things a bit now with the help of the Scarecrow and a few others that were willing to stick their necks out as we journey to Oz.

Politics is about nuance and IMHO on March 4, 2008 Dr Edwin Duett of Mississippi State University entered the political fray when he proclaimed it was time we began talking to each other instead of past each other. The "we" of course is the paying public and some of the pols who represent us like Gene Taylor and the insurance industry. "Fair enough" I thought, as progress can only result through communication but I was later taken aback when I heard Dr Duett say to the consumers present, "You do not want to pay actuarially sound rates." (as required by HR 3121 for multi peril coverage).  Needless to say when the program concluded I made a beeline for Dr Duett to inquire exactly what constituted actuarilly sound rates for wind insurance. He directed me to what we pay the wind pool as a good approximation.

In my opinion Dr Duett couldn't satisfactorily answer my follow up questions about the built in profitability for the reinsurance behind the wind pool rates which would be absent in HR 3121. He did give me his card and told me we would have to disagree (which puzzled me as I asked questions) and to email him if I wished to continue the discussion.  I favor my own sources in academia however and never followed up with Dr Duett.

Commissioner Chaney had a talking point though which he later repeated to a joint Chamber/Rotary club luncheon in Bay St Louis in April 2008. I suspect he has been using the line a good bit. For the record Dr Duett prefers subsidized rates for coastal homeowners since we subsidize natural disasters anyway. From a public policy perspective that notion is a non starter and thus a preserver of the status quo.

So on one hand we have our insurance commissioner Mike Chaney telling us we can't afford HR 3121, while others in the industry like our own Claimsguy tell us all we want is a handout and HR 3121 will be glorified welfare. Such is the way with people that are skilled in building straw men, the rhetoric sounds good until we peek under the scarecrow's shirt. To assist I've enlisted the help of the big bad wolf who will huff and puff and blow the straw men in....

We start with Sam Friedman's blog and W Anderson Baker III, a New Orleans based insurance agency president who wrote a piece on New Orleans for the National Underwriter.

Congress will apparently not add catastrophic wind coverage to the National Flood Insurance Program. I’m sure that makes sense. It was obvious no one was going to accept the premise that the pricing would have been actuarially sound, which set up the argument that one group of people would be subsidizing the lifestyle of others, and even though our entire tax system is based on this premise, that’s an argument for another day.

However, accepting the premise that people on the coast would have had their rates subsidized, I would ask: Who gets to live in New Orleans?

With due respect to both Mr Friedman and Mr Baker I thought the piece was hollow as the author accepts the failure of the insurance marketplace while faithfully awaiting a mythical market to return and fix the problem. Mr Baker must not have received the memo that private insurers are figuring out ways to leave America's coastline and the taxpayers are already left holding the bag as Dr Duett correctly pointed out back in March. Perhaps that "bag" was not mentioned since it also adds to Mr Baker's no doubt considerable income which would explain his belief that the Wizard will invent a true market based solution to coastal America's insurance problems absent government money. In the meantime he won't have to worry about commoners for neighbors.

Holman Jenkins Jr of the Wall Street Journal was similarily inspired to write on the subject of insurance and New Orleans yesterday:

Just add it to the list. Final liability for more and more of life's risks is being assumed by the federal government, i.e., taxpayers. Investment banks and hedge funds now aspire to be "too big to fail." Washington has completed its monopolization of the mortgage business and the student loan business. Car companies in a financial bind? Congress is ready to become their lender of last resort too.

New Orleans is just one city. Miami, Houston and Long Island are all a typhoon away from losses greater than Katrina's $140 billion. One-third of Katrina's damages were covered by private insurance. In the event of a Hayward Fault earthquake of 7 or higher, San Francisco and vicinity would be thwacked with losses upwards of $165 billion -- of which only 10% are insured. Guess who will pick up the tab? And why not. Perversely, all such commitments seem a drop in the bucket compared to $85 trillion in unfunded Medicare liability.

The interesting thing to me is despite acknowledging the coastwide risks Jenkins seems to think only New Orleans needs "the medicine" of an insurance industry induced non developed coastline. Will he be writing the same thing of Manhattan as Hanna bears down on the eastern seaboard or if terrorists strike a major blow there again? Somehow I think not.

No doubt local voters and politicians would decry it as a crime if New Orleans were forced to become a smaller, higher city because of such "greedy" behavior by insurance companies. The rest of us would see it as a sign of hope for our economic future after all.

Indeed we are left to ponder the multitude of assumptions these writers and others made in reaching their conclusions. The same assumptions underpin the thinking of Holman Jenkins, Mr Baker, Dr Duett and Commissioner Chaney in saying actuarially sound premiums are too expensive to allow meaningful redevelopment of the Katrina coast. I do agree that in economics that there is ultimately no such thing as a free lunch. To me the trick is to figure out how much lunch costs and unlike Holman Jenkins Jr and the rest I don't trust the pricing we currently get from a dysfunctional marketplace.

Pricing risk in the form of an insurance contract is a function of assumptions. It'd be fair to say the assumptions aren't wild guesses and represent the best statistical methods available. In the property and casualty lines the major assumptions used for pricing relate to the weather based risks like the risk the wind damage particular to a geographic location for wind policies. In addition to that, the capital required to make good on a policies comes at a cost as well.

In the area of cost of capital it was Brian Martin who educated us by linking a University of Pennsylvania study which spoke on the issue of the cost of capital for large catastrophes:

The Wharton Risk Center excuses the prices as necessary to ensure high rates of return for investors, but in doing so acknowledges that coastal rates are 5 to 10 times higher than the estimated losses.

What this doesn’t say is that it is not economically rational to pay for insurance that costs 5 to 10 times more than the expected loss.

MANAGING LARGE‐SCALE RISKS IN A NEW ERA OF CATASTROPHES

From the preface, page vii:

16. Due to the unpredictability and sizable losses associated with catastrophes, insurers need to allocate more capital to cover the losses in the tail of the probability distribution. The need to secure an adequate rate of return on capital is not sufficiently understood. In particular, the prices charged for catastrophe insurance must be high enough, not only to cover the expected claims and other expenses, but also to cover the costs of allocating capital to underwrite this risk. For truly extreme risks, the resulting premium can be as much as 5 to 10 times higher than the expected loss, so as to provide investors with a fair return on equity and also maintain the insurer’s credit rating.

19. Reinsurers consider both the expected loss and the variance of losses in their portfolio when pricing different layers of coverage. An analysis of different layers of reinsurance for a constructed portfolio of all the homeowners policies in Florida reveals that the average annual loss decreases with higher layers (because they are less likely to occur), but the variance of the losses increases. This leads to a higher price per dollar of coverage for the higher layers, which are normally associated with truly catastrophic losses.

So is it possible to have cheaper rates than the private marketplace and still have actuarilly sound rates? Absolutely, if good assumpions are used to calculate risk coupled with the low cost of capital provided by Uncle Sam's full faith and credit.

And while we are talking about assumptions used in pricing how do we know the ones used by insurance companies in setting rates are not rigged to support artificially high rates? The Wall Street Journal finally tackled the subject (subscription required) long covered here on Slabbed with big assists from Sam Friedman. You can find our posts on this subject here, here, here, and here among other places:

Scientists say the jury is still out on whether rising sea temperatures will cause more hurricanes to hit U.S. coastlines. Yet some insurance companies are boosting premiums based on assumptions that they will. Others are withdrawing from coastal communities altogether..........

Helping to drive these developments is a little-known tool of the insurance world: Computerized catastrophe modeling. Crafted by several independent firms and used by most insurers, so-called cat models rely on complex data to estimate probable losses from hurricanes.

But regulators and other critics contend that the latest cat models -- which include assumptions about various climate changes -- are triggering higher insurance rates.

Starting in the early 1990s, cat models began to replace the industry's older tools. Previously, insurers based their rates and underwriting policies largely on historical records of past claims. The turning point in methodology came after 1992, when Hurricane Andrew wrought damages in excess of $15.5 billion and left about a dozen insurers insolvent.

The original purpose of cat models was to help stabilize the insurance market and ensure affordable coverage in risky areas. To do this, the first versions used historical weather data to project long-term future losses.

In the wake of the punishing 2004 and 2005 hurricane seasons, many cat models saw drastic revisions. Rather than take a traditional longterm view, some attempted to estimate what might happen in the next several years. Modelers also factored in dramatically higher rebuilding costs when a large area is hit. The result: big premium hikes and higher deductibles.

Underlying the newer cat models are scientific theories that rising sea temperatures will result in more intense, and possibly more frequent, hurricanes. The hypotheses suggest that catastrophic hurricanes like 2005's Rita, Wilma and Katrina weren't an aberration, but rather the shape of things to come.

Large reinsurance companies, such as Swiss Re and Munich Re, were early converts to theories of global warming and cite warming of the earth's oceans when predicting massive damages from future storms.

"Losses from hurricanes and tropical storms have risen along with sea temperatures," says Eberhard Faust, a climate scientist at Munich Re. "This is [the assumption] from where all the modelers start."

That sea-surface temperatures are rising is no longer much in dispute. There is also near-consensus that rising temperatures are linked to greater hurricane activity. However, scientists remain divided over how that may affect the number and intensity of hurricanes making landfall in the coastal U.S. A few climate experts believe global warming might actually cause fewer hurricanes to come ashore on the East Coast..................

Some scientists, like Chuck Watson, contend that cat models may fail to take into account such scientific uncertainty. A geophysicist, he advises the Florida Commission on Hurricane Loss Projection Methodology -- a state panel that reviews insurer models. Cat models, he says, use assumptions about variables like air pressure and wind velocity that can't be known precisely. As a result, the models can be overreaching in their conclusions and "are not being properly applied" by some insurers, he says.

Perhaps the most prominent critic to surface is Karen Clark, an economist who founded one of the first cat-modeling firms two decades ago. Today, she warns about the programs' misapplication.

After Katrina, she attended insurance-company meetings to discuss "what went wrong" and concluded that there were more problems with how insurers were using the models than with the models themselves.

Companies that rely too heavily on cat-model data "are subjecting their businesses and their customers to the volatility of computer models," says Ms. Clark, who now runs a Boston cat-model consulting business. "The models are being used as if they produce definitive answers rather than uncertain estimates." Ms. Clark says she advises clients to use them in conjunction with other factors, such as broad historical data.

The bottom line for me is those that buy into the notion that our wind pool pricing is the actuarilly sound rate are the ones taking a huge leap of faith. The results of that leap have been paid for off the backs of the working man and at the expense of those that can least afford it.

It seems to me this is where the rubber meets the road. The public policy decision to rebuild has been made. Mr Baker well pointed out the reasons behind that public policy decision in the case of New Orleans in his piece on Sam Friedman's blog. And the reasons for rebuilding here would also be true in the case of places like Tampa, Charleston, Miami or New York.

Those who stake positions on the right will be the first to tell you government has limitations. Private industry, even those with anti trust exemption like insurance have limitations too.

sop

See. I told you so.

Banks, credit unions, dealers, and manufacturers all use the same process to make their financing decisions. The first thing they are going to look at is your credit report. Your credit report is a compilation of your credit history including credit cards, loans, and bills. These credit reports often contain mistakes so it is important that you get a copy of yours before the financing company you chose to finance a new car with sees it. Your credit report offers a very valuable tool for the financing company, your credit rating. Your credit rating will determine your loans interest rate.

Many finance institutions will offer a longer payment term when you finance a new car. This could cut your monthly payments and may look very appealing. These longer terms may seem like a good thing, but they increase the amount of interest you will pay and will add significantly to the price you ultimately pay for the car. It is best to only get the loan for the amount of time that you plan to own the car. This way you don't get stuck paying on a car you no longer own.

If you are a homeowner you can take out a Home Equity Loan to finance a new car. The interest paid on these types of loans is tax deductible but they include a lot of up front fees when opening them, such as application fees and closing costs. These loans also use your house as collateral and will put your home in danger if you cannot make the payments.

When you finance a new car be sure to explore all of your options first. Knowing what a lender is looking at and what impact it can have on your loan will keep you from being surprised along the way. To make the process easier, get your financing first before you begin looking at cars, then you know what you can afford and will be less likely to be tempted by the more expensive models showcased on the dealership's show room floor.

The bottom line is that insurance companies have studied the correlation between
credit scores and the likelihood of claims. They have found a connection and
will likely continue to use credit scoring as long as it is allowed in the State
of Colorado. With that being said, the best way to reduce your premiums and
get the best rates possible is to drive safely and defensively and continue
to improve your credit score.

Our office recently ran a sample proposal to see how much credit impacts the
final premium. Our first proposal included a higher credit score. The second
proposal included all the same information, but we listed the credit score as
the lowest possible. The difference in the premiums was 40%!

Many insurance agents offer their clients an annual review. If you have not
been contacted by your agent for a review, call him or her. This is a great
opportunity to make sure you have the coverage you need, the discounts you deserve
and to see how your credit score is impacting your insurance premiums. If you
have reason to believe that your credit score has improved since you first set
up your insurance, let your insurance agent know.

Kendall Payne, LUTCF Payne & Associates LLC
info@aroundthehouseblog.com

When Credit Scores Improve

There are currently so many home loan options available, that even those with poor credit are likely to find a lender who can assist them in realizing their dream of purchasing a home. However, those with poor credit are likely to be offered unfavorable loan terms such as high interest rates or variable interest rates instead of fixed rates. This is because the lender considers these homeowners to be higher risk than others because of their poor credit.

Fortunately for those with poor credit, many credit mistakes can be repaired over time. Some financial blemishes such as bankruptcies simply disappear after a number of years while other blemishes such as frequent late payments can be minimized by maintaining a more favorable record of repaying debts and demonstrating an ability to repay existing debts.

When a homeowner’s credit score improves considerable, the homeowner should inquire about the possibility of re-financing their current mortgage. All citizens are entitled to a free annual credit report from each of the three major credit reporting bureaus. Homeowners should take advantage of these three reports to check their credit each year and determine whether or not their credit has increased significantly. When they notice a significant increase, they should consider contacting lenders to determine the rates and terms they may be willing to offer.

When Financial Situations Change

A change in the homeowner’s financial situation can also warrant investigation into the process of re-financing. A homeowner may find himself making considerably more money due to a change in jobs or considerably less money due to a lay off or a change in careers. In either case the homeowner should investigate the possibility of re-financing. The homeowner may find an increase in pay may allow them to obtain a lower interest rate.

Alternately a homeowner who loses their job or takes a pay cut as a result of a change in careers may hope to refinance and consolidate their debt. This may result in the homeowner paying more because some debts are drawn out over a longer period of time but it can result in a lower monthly payment for the homeowner which may be advantageous at this juncture of his life.

When Interest Rates Drop

Interest rates dropping is the one signal that sends many homeowners rushing to their lenders to discuss the possibility of re-financing their home. Lower interest rates are certainly appealing because they can result in an overall savings over the course of the loan but homeowners should also realize that every time the interest rates drop, a re-finance of the home is not warranted. The caveat to re-financing to take advantage of lower interest rates is that the homeowner should carefully evaluate the situation to ensure the closing costs associated with re-financing do not exceed the overall savings benefit gained from obtaining a lower interest rate. This is significant because if the cost of re-financing is higher than the savings in interest, the homeowner does not benefit from re-financing and may actually lose money in the process.

The mathematics associated with determining whether or not there is an actual savings is not overly complicated but there is the possibility that the homeowner will make mistakes in these types of calculations. Fortunately there are a number of calculators available on the Internet which can help homeowners to determine whether or not re-financing is worthwhile.