Posted by Benji Riggins on April 26, 2010 under Boat Insurance | 
In order to obtain the best possible insurance coverage for your particular watercraft consider taking the following steps.
Research a number of insurance companies, as well as a variety of policies on the internet. This will help you to determine which features you would like to have written into your policy, and which ones you may not feel as strongly about.
After investigating as many companies as you can, select 3 or 4 which offer the most extensive packages. Be certain that each company will be able to meet or exceed your insurance needs by viewing their policy options. When selecting these companies also consider which ones have the most experience in dealing with the type of insurance you want. Boat owners should consider choosing companies which specialize in boating insurance, rather than other types of insurance.
Get at least 3 quotes. These can be obtained online, or by contacting a representative from each company, to explain what you want, and request a quote. Obtaining a quote does not obligate you to purchase the insurance. If you are not satisfied with the coverage offered, or the rates quoted, then you can simply say “No thank you.”
Don’t be pressured into selecting a policy, until you feel confident that you have found the right one. Before you purchase any policy take the time to talk with a representative of the insurance company. Evaluate the service that representative provides. If you do not feel comfortable with one company, consider looking into another. It will be important in the future, should you need to file a claim, that you feel confident that the representative will be attentive to you as a customer.
Posted by Benji Riggins on January 26, 2010 under Insurance News |
When it comes to government-created insurance, the state health plan isn’t the only entity facing trouble.
An attempt to fix an ailing coastal insurance plan made steps through the North Carolina House of Representatives this week as HB 1305: “Beach Plan Changes” passed the insurance committee Tuesday and moved on to finance.
“Over the last six months, my office, legislators, business owners and homeowners across the state have been working furiously to find an acceptable compromise so that we could avoid a statewide insurance crisis,” said North Carolina Commissioner of Insurance Wayne Goodwin. “It is vital that North Carolina pass meaningful legislation this session before the next hurricane or series of hurricanes hits.”
The North Carolina Insurance Underwriting Association (Beach Plan) was created by the General Assembly 40 years ago to provide supplementary wind and hail coverage for property owners on the barrier islands, who were often refused such coverage from standard insurance companies due to high-risk storm exposure.
The plan has since expanded to offer homeowner’s and wind/hail insurance for residential and business properties in 18 coastal counties,
The plan was created and is regulated by the state, but it is not a state entity. It’s an association of independent companies acting as one.
Currently, all property and casualty insurance companies that do business in North Carolina write and fund the plan — and share any losses or profits. According to Goodwin, the plan was designed as a last resort, offering coverage at a higher-than-standard rate to those who would otherwise not have it. But Beach Plan rates became lower than those of the voluntary market — and it has become the insurer of first resort on the N.C. coast.
In 2007, the plan provided the Department of Insurance with an actuarial report assessing that their rates were 76 percent inadequate. Officials say the plan is seriously unprepared to pay for the potential losses of a major storm.
If HB 1305 passes, those insured under the plan will pay higher premiums – and maximum coverage will be reduced from $1.5 million to $750,000.
But home owners across the state will be affected if a major storm costs the plan more than it has in the bank. The legislation enables member companies to tack up to 10 percent onto their customer’s bills in the form of a “catastrophic assessment recoupment” — but only if damages get up to around $2.4 billion.
A pivotal part of the bill relates to the tipping point at which private insurance companies can start passing the burden along, which has currently been set to $1 billion. The insurance industry originally wanted the threshold to be $100 million.
Department of Insurance spokesperson Kristin Milam explained the concept with a hypothetical scenario:
“If we had a major storm tomorrow, like a Hazel-type storm, the Beach Plan would use two-thirds of its $800 million surplus to pay claims; they would have to hold some back in case we get other storms throughout the year,” said Milam. “If the plan paid the first $600 million, then the member companies would have to chip in the next $600 million to get to the $1.2 billion reinsurance attachment point. If it goes beyond $1.2 billion in reinsurance, (the plan) would have to assess the member companies again.”
And the member companies would then assess their members with what has been called a 10 percent “surcharge.” But Goodwin said that’s not correct. A surcharge comes after the fact. A catastrophic assessment recoupment is a proactive measure.
“Other states have been reactive, and that has led to extraordinary insurance rate increases in those states,” Goodwin said. “By being proactive, North Carolina will provide consumers and the industry with certainty and have a much more stable and competitive insurance market.”
Officials say that if insurance companies don’t know how much they will be liable for and if they will be adequately compensated, they’re liable to pull their business out of North Carolina — like State Farm recently did in Florida.
“Florida presented a unique set of circumstances,” said State Farm Spokesman Russ Dubisky. “Right now, State Farm is committed to our business in North Carolina. State Farm sees HB 1305 as an incremental step in the right direction. Eventually, we hope to see the Beach Plan become independently solvent by building its reserves, purchasing adequate reinsurance, and truly acting as the market of last resort.”
That’s another important piece of the legislation. Let’s say there are no major storms this year, and the Beach Plan makes a profit. Under HB 1305, member companies will no longer get to take their share of that profit. It will go straight into the Beach Plan surplus and build over time.
“The more money that the beach Plan has in the bank, the larger the storm or series of storms it can handle without turning to its member companies, and subsequently, policyholders,” said Goodwin in a speech to the Insurance Committee on June 25.
“And, as you all know, no one piece of legislation is perfect and this bill certainly is not perfect. But legislation, particularly involving complex subjects, is often about compromise.”
by Olivia Webb
Tags: home insurance, home insurance nc, home insurance north carolina, house insurance, house insurance nc, house insurance north carolina, insurance, insurance agency, insurance agent, insurance nc, insurance north carolina, nc beach plan
Posted by Benji Riggins on August 8, 2009 under Insurance News |
The North Carolina General Assembly has approved a bill to reform the state’s coastal insurance system that caps private insurers’ liability for any funding shortfall in the state-backed Beach Plan, reduces coverage for property owners who get coverage in the Beach Plan and requires insurers to offer discounts for storm mitigation efforts by policyholders.
The bill (HB 1305) is intended to reduce the exposure and prevent a funding shortfall in the North Carolina Insurance Underwriting Association, known as the Beach Plan, which insures 170,000 properties valued at nearly $74 billion in 18 coastal counties.
Yesterday, just before 5 p.m., the House concurred in a 92-19 vote with a Senate version of the bill. The measure now goes to Gov. Bev Perdue, who can sign it, veto it, or let it become law without her signature.
The measure was supported by property/casualty insurers whose lobbyists said it was necessary to provide certainty and stability in the private marketplace.
“Yesterday was good day for all insurance consumers in North Carolina. Elected officials have realized how out of kilter the current Beach Plan is and have taken steps to begin to rectify the situation,” said Liz Reynolds, Southeast state affairs manager for the National Association of Mutual Insurance Companies (NAMIC).
While overall supportive of the reforms, the insurance industry came away slightly disappointed that a key rate differential provision backed by the House was watered down in the final version. The final bill requires that the Beach Plan’s rates for standalone wind and hail coverage be 5 percent more than those of private insurers, and rates for full homeowners policies that include wind and hail coverage be 15 percent higher– which is what current rules say. The industry preferred the House version that had called for different figures: 10 percent higher for wind/hail and 20 percent higher for full homeowners.
The rate differential is meant to reduce the exposure of the Beach Plan by encouraging policyholders to buy policies from the private market rather than the more expensive state insurer.
Reynolds conceded that the lower rate differential “will make it more difficult to quickly return the Beach Plan to the market of last resort.”
But she said the overall measure is the beginning of “many more incremental steps toward strengthening and diversifying not only the coastal insurance market in North Carolina, but the entire market in the state.”
The bill will require the private market, as well as the Beach Plan, to file rating plans including mitigation discounts.
Momentum for the reform was helped by an actuarial report, commissioned by the Property Casualty Insurers Association of America (PCI), that showed the Beach Plan was seriously underfunded. According to that report, the Beach Plan has no more than $1.5 billion available to pay for hurricane losses. However, a large storm could cost more than $7 billion, leaving a $6.2 billion deficit and affecting the plan’s ability to pay claims.
The bill addresses this concern by capping private insurers’ liability at $1 billion if the state insurer’s funds fall short and providing for surcharges on all policyholders in the unlikely event that there is such a devastating storm that more funds are needed.
Private insurers say the certainty this liability cap provides them is important to their ability to properly price policies. Several insurers have stopped writing business in the state out of concern over the uncapped liability.
“Lawmakers recognized that the Beach Plan is not financially stable which could hurt insurance policyholders across the state,” said Lynn Knauf, regional manager for PCI. “The General Assembly has responsibly chosen to solve the property insurance crisis before the storm, instead of after a devastating event, unlike the fate of some other coastal states.”
Any surcharges on policyholders statewide would be limited to no more than 10 percent annually and could begin only after the Beach Plan exhausts its surplus, about $2.4 billion in reinsurance and the $1 billion private insurer non-recoupable amount. This so-called “catastrophe recovery charge” would have to be clearly identified to policyholders on their premium statement, declarations page, or by some other electronic or written method.
As part of an attempt to control the state-backed insurer’s exposure, the measure requires the Beach Plan to limit the coverage it offers on residential properties to $750,000 and on commercial properties to $3 million. It now offers limits twice those amounts. Contents of habitational property could be insured only up to 40 percent of the home or building value under the bill.
If the value of the property exceeds the new maximum coverage limits available from the Beach Plan, the property owner must arrange to purchcase the excess coverage in the private market before the Beach Plan can issue its policy.
“This is a strong reform bill,” said Raymond G. Farmer, assistant vice president for the American Insurance Association’s southeast region. “It meets two key goals: first, putting the Beach Plan on a stronger financial footing, and second, giving private market insurers greater certainty as to their ultimate financial obligations should a major storm hit that depletes the Beach Plan’s claims paying resources.”
HB 1305 was sponsored by Rep. Hugh Holliman in the House and lead by Sen. Tony Rand in the Senate.
Posted by Benji Riggins on August 2, 2009 under Boat Insurance |
Coverage of a watercraft can range from total replacement of the vessel if destroyed, to personal liability coverage, and everything in between. When deciding on what policy is right for you, consider what your needs and risks are, and how much you are willing to spend to protect them.
Full coverage boat insurance is the safest route for the boat owner who wants to insure his valuable property. With full coverage the boat owner can opt to ensure the cost of replacing the vessel if it is totally destroyed. Coverage can also include damages to either the boats structure, or engine. Coverage for loss or damage to personal property while on the vessel may also be included. Other options can include injury protection, salvage or wreck removal, loss of use reimbursement, towing costs, and even investigative services.
Liability insurance covers you in the case of accident responsibility. Generally a boat owner can choose either boat liability, also known as indemnity insurance, which will cover only damages done by the vessel, or personal liability, which will cover damages done by the boat owner, regardless of where or how they occur.
While liability insurance is generally the least expensive, it is important to remember that it will only cover the cost of damages/repairs to third parties. Your own property is not covered under liability insurance. In this way, even though liability insurance often appears to be the most inexpensive option for the boat owner, if the vessel were to be destroyed, the cost of replacement would far out weigh the savings on premiums.
Posted by Benji Riggins on July 24, 2009 under Insurance News |
Insurance Commissioner Wayne Goodwin wants North Carolinian homeowners to be aware of a class-action settlement with Nationwide Mutual Insurance Co. for which he estimates some 304,995 consumers across the state may qualify.
The settlement is between Nationwide Mutual Insurance Co. and affiliated companies and homeowner policyholders who say they were not paid enough for claims submitted from 1996 to March 20, 2009.
The lawsuit alleges Nationwide underpaid policyholders by not including general contractors’ overhead and profit when paying certain claims involving damage to a building or other structures.
Nationwide maintains that it properly resolved and settled homeowner’s claims but agreed to settle the suit to avoid the cost and distractions of prolonged litigation.
Eligible consumers must submit their claim form by Aug. 26 to receive a potion of the settlement. Potentially eligible consumers should have received notice of the class-action lawsuit by mail.
Goodwin said those who think they were affected should visit the settlement’s Web site at www.alexanderclassactionsettlement.com to submit a claim. All claims must be submitted by Aug. 26.
The Nationwide companies involved are: Nationwide Mutual Insurance Co., Nationwide Mutual Fire Insurance Co., AMCO Insurance Co., Allied Property and Casualty Insurance Co., Depositors Insurance Co., National Casualty Co., Nationwide Insurance Company of America, Nationwide Affinity Insurance Company of America, Nationwide Property and Casualty Insurance Co., Nationwide Lloyds, Nationwide Insurance Company of Florida, Nationwide Indemnity Co., Scottsdale Indemnity Co., Scottsdale Surplus Lines Insurance Co. and Scottsdale Insurance Co.
