NY Attorney General Subpoenas 9 Life Insurers

                                   Ny Attorney General subpoenas 9 life insurer

New York Attorney General Eric Schneiderman sent out subpoenas to nine leading life insurance companies last month. A source close to the matter told Reuters on Tuesday that the subpoenas sent addressed the companies’ practices in identifying and paying out policies to deceased customers.

Companies Not Identifying Deceased Policyholders

In a probe similar to that conducted by California Insurance Commissioner Dave Jones in May, Schneiderman is investigating nine major insurance companies that are being accused of not doing enough to locate beneficiaries of policyholders after they’ve died.

His office is seeking information about unclaimed policy proceeds that should have either gone to the beneficiaries or been turned over to the state. The belief is that companies failed to seek beneficiaries on purpose to instead hold the money in retained asset accounts that grow interest over time.

The companies sent subpoenas include AXA SA, Genworth Financial Inc., Manulife Financial Corp., TIAA-CREF, Guardian Life Insurance Co. of America and Massachusetts Mutual Life Insurance Co. Three of the companies included, MetLife Inc., Prudential Financial Inc. and New York Life Insurance Co., have also been subpoenaed by Jones, said the source who wanted to remain anonymous.

Insurers Deny Wrongdoing but Plan to Cooperate

A spokesman for Guardian told Reuters that the company is reviewing the subpoena and intends to “cooperate fully with the Attorney General.”

TIAA-CREF also plans to cooperate but told Reuters, “We believe our processes are compliant with all relevant regulations and serve the best interests of our participants.”

A Genworth spokesman told The Wall Street Journal that it also believes it has “compliant and robust practices to determine when claim payments are due and owing, and to adhere to state unclaimed property requirements and regulations.”

The New York State Insurance Department announced on Tuesday that all life insurers licensed to do business in the state will have to start using an official government death list to identify when policyholders have died. It will also list when death benefits are due to their beneficiaries

Cutting Medicare and Medicaid to Solve Debt Ceiling Issue Will Only Shift Health Care Costs

Health care experts say that the Medicare and Medicaid budget cuts that have been proposed by lawmaker

to resolve the debt ceiling issue would only shift health costs, not eliminate them, according to a new Wall Street Journal story. So far, abut $350 billion in cuts have been proposed to the two programs over the next 10 years, but most think these government savings would actually become new costs for others.

Lawmaker Proposes Medicare and Medicaid Cuts

Lawmakers have been in debates over the past few weeks on how to avoid default after national debt reached its $14.3 trillion ceiling on May 16. Some have proposed raising taxes while others want budget cuts.

This week, House Majority Leader Eric Cantor (R-Va.) presented a list of proposed cuts, which include lower federal payments to hospitals with many poor patients, as well as state Medicaid programs, new patient co-payments for clinical lab work and reduced payments to nursing homes and rural hospitals.

These cuts would be in addition to the $500 billion in cuts to the Medicare program that were already approved to allow the passage of the 2009 health care bill.

Proposed Cuts Will Be Shifted to Other Entities

Both Democratic and Republican health care analysts who have reviewed the cuts agree that they would not really save money. Instead they would shift financial burden to other entities like public hospitals, the states and individuals.

For instance, up to $53 billion in savings over the next 10 years would come from cutting Medigap, which is Medicare supplement insurance. The cuts would result in higher out-of-pocket costs for seniors.

Another proposal has been to save $14 billion to $26 billion by cutting back on reimbursing unpaid debts. While this would save the government money, it would shift the burden to hospitals.

Experts say the better alternative to making these cuts would be to devise a strategy that would restrain costs. For instance, Medicare could offer different tiers of coverage similar to private health insurance. This way, more could be acquired from seniors willing to pay more for higher-quality coverage.

Experts say states, hospitals and individuals are not in a position to burden the shifted costs. They hope lawmakers will work out other ways to resolve the debt issue by the Aug. 2 deadline.

insurance policies

Just because you eat veggies and hit the gym regularly doesn't mean you're immune to an illness, or won't have an accident.

Everyone requires medical help at some point and if you don't have insurance, the resulting bill is going to be painful. Deliver a baby -- without complications --and expect to fork over an average of $10,000, says Matt Tassey, former chairman of the Life and Health Insurance Foundation for Education (LIFE). Get diagnosed with cancer and the expenses can go into the million-dollar range, says Lorne Zalesin, CEO of MyInsuranceExpert.com, which offers free quotes for individual health-insurance policies.

If your employer doesn't offer coverage in a group plan, look into an individual policy. Just be aware that private health insurance typically requires holders to pay higher premiums than they would with a group plan. And coverage may be more limited. To find the right individual plan, visit your state's insurance department web site, which often lists area insurance providers, and web sites like eHealthInsurance.com and MyInsuranceExpert.com for free quotes.

Visit our worksheet for more on choosing the best health plan.

Disability Insurance

Few people like to imagine the worst-case scenario, but Scott Simmonds, a Saco, Maine-based insurance consultant, makes a practice of it. He knows that one major accident could keep a person out of work for months or even years. Even worse: those without disability insurance could face bankruptcy. (Even though Simmonds doesn't sell disability insurance, he still recommends it.)

Disability insurance replaces a portion of up to 60% or 70% of lost income if the policyholder can't work due to an illness or injury. Often times, companies pay for employees disability insurance, or offer it as a voluntary benefit that employees pay for. Individuals can also buy their own policy, although the premiums will cost around 15% more, says Simmonds.

Shop around carefully. These policies are very complicated, can include many caveats, such as what qualifies as a disability, and can be hard to land on your own. Also, costs will vary based on an individual's income and type of coverage. If your employer doesn t offer adequate coverage, contact independent insurance agents who can provide you with a range of policies, says Simmonds.

For more on disability insurance, read our story.

Auto Insurance

What good is a shiny, new sports car if a fender bender will put you in the poor house?

States require different minimum amounts of auto insurance, but it's not enough to take care of things when they really count. Every driver should invest a little extra in comprehensive and collision coverage, especially if their car is less than 10 years old, says Claire Wilkinson, vice president of global issues at the Insurance Information Institute. (For cars older than that, the cost of coverage can be more expensive than the car's value.) Comprehensive coverage protects a car from vandalism, natural disasters like a storm or a tree falling on it, and most other damages -- excluding collisions. That's where collision insurance comes in. It helps pay for repairs to or replacement of a car if it's involved in an accident with another vehicle.

Read our story here for more tips on determining the type of auto insurance you may need.

The Multi Trip Insurance.

It could be quite challenging if you travel annually and have to make insurance plans for every trip. Vacation, retreats, religious or academic are some of the many reasons why people travel. With all the uncertainties lined up, having one insurance package to cater to all your insurance needs will be great.

The Annual Insurance Plan meets all yourinsurance needs adequately. There is an assurance of sufficient cover and all year protection to the insured person within the period. The cover includes accidental health and evacuation in terms of a mishap and medical expenses. Should the insured person lose his life in the process, some money will be due his beneficiaries. The amazing thing is that the plan is yearly and covers all trips within the year.

This Insurance policy is also ideal because it ischeaper than purchasing a new insurance package every time one has to travel. That means, with the one policy purchased will handle all trips for that year. Seeking and buying a fresh insurance policy each time one has to travel could be laborious and cumbersome. The rigours of signing papers, filling forms; it is most convenient to just buy one package for the whole year.

The Annual Holiday Insurance consists of two packages; the Annual Multi Trip Insurance and the Multi TripTravel Insurance. The Annual Multi Trip Insurance presents so many health benefits to people travelling a lot on a yearly basis. The benefits include trip cancellation, luggage loss, medical coverage costs and swift health attention in the case of a crisis. This package can keep the insured person rest assured in the eventuality of any unforeseen mishap. This package takes care of dependants as well.

For those making many trips annually, the Multi Trip Insurance package is best for you. The insured person is guaranteed of coverage through his multi trips. If you need trip cancellation funds, then this is for you. Restrictions are thus; length of trip and having a health insurance back home.

It makes insurance easier and cheaper as one does not have to buy insurance policy per trip. Those who travel annually and professionals now have a better option to buying policies per trip.

Check out more information on annual travel insurance and multi trip travel insurance by visiting the links online.

Individual Health Insurance

The National Health Service (NHS) delivers low-cost or often free medical care to residents in the UK. Eye tests, medical prescriptions, dental treatment and spectacles demand a fee, but youngsters, individuals receiving unemployment positive aspects and pregnant females are exempt from the charges. All UK residents can take advantage of the services of NHS general practitioners and consultation from medical facilities situated in several parts of the country. The rules, procedures and documentation required for access to UK hospitals and general info on healthcare are freely available from the NHS website. Private health cover is necessary for visitors and expatriates.

Individual health insurance is often purchased independently by a single individual, a parent, dependant children or a family. The regulations by which the insurance companies market and sell individual policies varies according to company policy. Individual health insurance can be bought from licensed health insurance salespeople. The alternative is contacting independent brokers who sell insurance plans from many companies and can help you find the most suitable health insurance for yourself. Agents also provide other services like helping clients to process claims. The agent receives a commission from the company on the individual health insurance plan that was sold to you. Hence, you do not have to pay a direct fee to the agent.

Individual health insurance is typically offered by an employer. Options like maternity coverage and substance-abuse treatment may not be included in individual plans. However, if you desire it, you can pay extra for the additional services.

Cost is one problem numerous individual health insurance consumers have an concern with; deductibles (the amount paid just before insurance positive aspects begin) and cost-sharing (the fees paid directly to medical providers at time of service) are normally greater. This will be the reason why advantages in individual policies are usually straightforward.

To buy medical insurance, applicants need to complete a medical questionnaire. In contrast to group health care insurance, a business can decide not to cover people with serious medical conditions like cancer. Insurance companies are permitted to look over a person’s medical history for pre-existing conditions and can choose not to cover specific conditions for an underlined period of time. This is known as ‘exclusionary waiting’.

An applicant must thoroughly read the terms and conditions of any policy he or she is thinking of taking out. It may be the case that money may be saved by taking out a policy for reduced cover if it is decided that it is not needed.

Looking to find the best deal on health insurance quotes, then visit www.healthquotes.co.uk to compare UK health providers such as Simplyhealth

Term life insurance

Term Life Basics

¹ 30 year term is not available in Washington

² Policies are convertible until the earlier of the end of the initial term period or the policy anniversary at attained age 70. For issue age 65 and over, the policy is convertible for 5 years.

³ Withdrawals and loans from life insurance reduce the policy cash value and death benefit. Loans are subject to interest, which if not paid, increases the loan amount. Cash value accumulation may not be guaranteed. Investments in variable life insurance are subject to market risk including loss of principal.

⁴ If you receive benefits under this rider, the policy can only be converted to whole life.

⁵ Term Conversion Plus is available in most states. Additional terms and conditions apply. Contact a Financial Representative for full details.

Like most insurance policies and annuity contracts, MetLife's policies and contracts contain withdrawal charges, limitations, exclusions, holding periods, termination provisions, and terms for keeping them in force. Contact your Financial Representative for complete costs and details.

Guarantee Advantage Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-34-07 and in New York, only by Metropolitan Life Insurance Company on Policy Form Series 1E-34-07-NY. Equity Advantage Variable Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-46-06 and in New York only by Metropolitan Life Insurance Company on Policy Form Series 1E-46-06-NY-1. MetLife Promise Whole Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-12-10 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-12-10-NY. Guaranteed Level Term is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-21-04 and in New York, only by First MetLife Investors Insurance Company on Policy Form Series 5E-21-04-NY. All are MetLife companies. All guarantees are based on the claims-paying ability and financial strength of the issuing insurance company. Variable products are distributed by MetLife Investors Distribution Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614. Variable products are offered through MetLife Securities, Inc. and New England Securities Corporation; both at 1095 Avenue of the Americas, New York, NY 10036 (member FINRA/SIPC). March 2011

Term Life Insurance provides a cost-effective solution for your temporary life insurance needs and gives you the flexibility to change your policy should your temporary needs turn into permanent goals.

Term Life Insurance is right for you if you want:

• An affordable way to get maximum coverage
• To cover specific financial responsibilities like a mortgage or college expenses
• To supplement your Permanent Life Insurance during periods when coverage needs are higher, such as family-growing, mortgage-paying years

Some things to consider about Term Life Insurance:

• There is no cash value accumulation
• Continuing your coverage after the initial level premium-paying term expires can be very expensive

Many Grads May Not Get Health Insurance Coverage from Mom and Dad: eHealthInsurance Survey

Many Grads May Not Get Health Insurance Coverage from Mom and Dad: HEALTH INSURANCE Survey

According to a national survey of college students, graduates and parents conducted in April, 2011 by global insights firm Kelton Research and sponsored by insurance-policy.blogspot,com(NASDAQ: EHTH), nearly four in ten (38%) of parents do not plan to keep their adult children on their health insurance plan until age 26, despite the fact that the 2010 health care reform law now allows them to do so.

 

Additionally, more than four in ten (43%) parents of college students or grads under age 26 said they would only keep their adult children on their health insurance plan if it cost them nothing to do so.

 

A provision of the 2010 Patient Protection and Affordable Care Act allowing adult children to retain eligibility for coverage under their parents’ health insurance plans until they turn 26 could potentially benefit young college graduates who may not get a job with employer-sponsored health benefits after graduation. However, staying on a parent’s health insurance plan is not an option for some graduates, and may not be the best choice for many others.

 

Many parents do not have health insurance coverage and those who do are not required by the law to keep their adult children on their plan. It may be impractical to stay on a parent’s health insurance plan for new graduates living in other states or areas outside their parents’ insurance plan’s provider network.  Parents who do want to keep new grads on their health insurance plan may be required to pay additional premium costs.

 

The eHealthInsurance survey reveals this to be an unpopular option with many parents who may want to encourage their new grads towards financial independence. More than half of parents surveyed (56%) expect to provide their child with financial assistance for only a year or less, or not at all, after graduation. However, nearly two thirds of current college students (63%) think it’s only fair for parents to help them cover their health insurance costs for a year or more after graduation.

 

The following survey highlights provide additional insights into how college students, recent graduates and parents feel about finances, health insurance and the job market as the next wave of college students are set to graduate this spring. Full results of the Students and Grads Survey and the Parents Survey are available at the eHealthInsurance Media Center.

 

FINANCIAL INDEPENDENCE – Many of the students and grads surveyed expect, or expected, to be financially independent shortly after graduation (though they may expect help with health insurance for longer). Though somewhat less optimistic, parents largely share the same expectations.

• A majority of students (65%) and recent grads (70%) expect to receive either no financial support from their parents or financial assistance for less than a year after graduation
• More than one in two parents (56%) expect to provide their grads with no financial assistance at all or financial assistance for only one year or less after graduation

THE VALUE OF HEALTH INSURANCE – Health insurance is universally valued, but surveyed students and grads may be willing to go to greater lengths and make more sacrifices to obtain coverage than their parents are.

 

• Nearly all students (97%), recent grads (97%) and parents (97%) agree that it is important to have health insurance
• Most students (94%) and grads (93%) would willingly make sacrifices or give up at least one small indulgence like a weekly night out at the movies or dinner, or their daily coffee, if it meant they could afford health insurance
• Almost two in three students (63%) and grads (66%) think it’s fair for parents to help their children cover health insurance costs for a year or more after graduation
  • Over half of parents (58%) agree
    • And yet more than four in ten parents (43%) with adult children under age 26 would only be willing to keep their children under their own health insurance plan if it cost them nothing
    • More than one in two (57%) current students think it’s more important for grads to take a job they don’t like but which offers benefits like health insurance or a retirement account
    • By comparison, fewer than half of parents (46%) feel the same way

CURRENT HEALTH INSURANCE STATUS – Many of the surveyed students get help from Mom and Dad when it comes to health insurance. Compared to 2010 survey responses, more grads are now covered by plans paid for by their parents, but this still only accounts for a minority of respondents.

• Over one in two current students (52%) are presently covered under health insurance plans paid for by their parents
• Only three in ten recent grads (31%) are currently covered by a health insurance policy that is paid for by their parents
  • By comparison, last year’s survey indicated that significantly fewer grads (14%) were covered by plans paid for by their parents

COST EXPECTATIONS FOR INDIVIDUAL HEALTH INSURANCE – When it comes to purchasing health insurance coverage on their own, grads and students surveyed expect they’ll have to pay somewhat more than they consider fair. 

• Students expect to pay more ($204 on average) for a private health insurance plan of their own than recent grads ($171 on average)
  • And yet both are willing to pay more than may be necessary; according to a survey of plans purchased through eHealthInsurance, monthly health insurance premiums for individual coverage of 19-26-year-olds was $113, as of February, 2010¹
  • Both students and recent grads think a fair price would be somewhat more affordable ($155 for students and $126 for grads)
  • A fair price in parents’ minds, however, would be $148 on average per month

THE JOB MARKET AND HEALTH INSURANCE - A majority of both the students and grads surveyed expect to receive health insurance coverage as a benefit of employment. However, the survey documents a division between expectations and reality, and recent grads have a more pragmatic approach to health coverage.

• Asked to identify “non-negotiable” employment benefits from a list, more students (38%) and grads (39%) said they would pass on a job that didn’t offer health insurance than any other benefit
• More than three in four students (80%) and about as many recent grads (73%) expect(ed) their first job after college to provide them with health insurance
  • However, only 31% of grads report currently having employer-based health insurance
  • More recent grads (74%) than current students (54%) think it’s better to live at home with Mom and Dad for the first year after college if it means having health insurance, rather than live on their own and go uninsured

HEALTH CARE REFORM KNOWLEDGE – The survey shows some gaps in the students’ and grads’ knowledge about health care reform. 

• Clear majorities of both students (65%) and grads (59%) consider themselves informed about health care reform
• However, although most students (53%) and grads (63%) know that, as a result of healthcare reform, they are now eligible to stay on their parents’ health insurance plans until age 26,
  • Over two in ten current students (21%) and 19% of grads think that subsidies are available in 2011 to help people purchase health insurance –
  • And a similar number of grads (23%) and students (16%) think that college graduates are required to purchase coverage on their own in 2011
    • IN FACT, these provisions of the health care reform law don’t take effect until 2014
    • Only two in ten students (20%) and grads (20%) know that new health insurance plans now provide better access to preventive care

Methodology of the Surveys:

The eHealth College Student and Grads Survey was conducted by Kelton Research between April 21st and April 29th, 2011, using an email invitation and an online survey. Kelton Research surveyed a sample of 255 full-time college students ages 18-30 and 251 recent college graduates ages 18-30 who are in the workforce or seeking employment.

 

The eHealth Parent Survey was conducted by Kelton Research between April 21st and April 29th, 2011, using an email invitation and an online survey. Kelton Research surveyed a sample of 500 parents of full-time college students or recent graduates who are in the workforce or seeking employment.

 

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results.

 

For the sample of college students, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 6.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. For the sample of recent college graduates, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 6.2 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

 

In the eHealth Parent Survey, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 4.4 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

 

Notes

¹ The 2010 plan data referred to in this survey is derived from a national sample of over 90,000 individual major medical policies purchased through eHealthInsurance by individuals aged 19-26 that were active in February 2010. The premium data is derived from information received from health insurance carriers relating to the actual premiums being paid by policy holders in the month of February 2010. Actual premiums may differ from premiums quoted on the eHealthInsurance website because they represent the premium being paid after underwriting and for policies that were purchased prior to the date of analysis.