ILH Insurance Talk

My insurance license is expired

2012-02-07T11:10:00.000-08:00

...and will not be renewed until I see a direct financial incentive. Any insurance related questions should be directed toward your current agent or the Office of the Commissioner of Insurance in Madison, WI.

Never tried the prepaid hotspot....

2012-02-02T22:52:00.000-08:00

....but Virgin is a brand, so how good is it, what are the limitations? Interested in finding out from anyone who has tried them.

Pet food direct

2012-02-02T20:50:00.000-08:00

through this site. These are products I am using, and having delivered to my door, though that Merrick order is taking a long time.... and there are a significant number of damaged cans from Weruva, but it's still cheaper this way, and they deliver right to front door, at least here in New Glarus, and maybe close to you, deliver for free...

Weruva and Merrick brands available on our Amazon site

2012-02-02T14:36:00.001-08:00

.....may qualify for free shipping, at a substantial discount to store prices. Delivered to your home.

Support the ASPCA

2011-03-21T13:27:00.001-07:00

End coyote hunting now.

DNA and protein are symbiotic molecules

2011-01-20T00:28:00.000-08:00

Protein and DNA are symbiotic molecules: As long as there is one, the other can be reproduced. In the absence of elements which inhibit reproduction, DNA produces proteins which facilitate reproduction. Ultimately, the structure of these particular proteins, and in union with the DNA molecules generate compounds which inhibit reproduction, or simply exhaust the available pool of necessary elements for reproduction.

As many of these compounds are highly volatile outside of the bonds of the complex DNA molecule, their binding allows for less volatile, and thus morestable structures to form around the electrical field generated by what is essentially a large and complex molecule consisting not only of DNA, but every substance to which the DNA is covalently or ionicly bound. It literally means the molecular structure of the DNA is constantly altering, with the central structure remains relatively stable.

In the absence of an organizing nucleus, proteins are able to form bonds with nucleic acids, and ultimately become a template upon which DNA can form, and then produce proteins which facilitate reproduction. Once the reproductive process has stopped, other available elements in the local environment may allow for an orderly and time-consuming process of developing new capabilities, adapting to conditions as best they can. In the balance of elements which constitute the errestrial environment, conditions which degrade DNA tend to stimulate protein production and conditions which degrade protein promotes DNA production.

Enzyme Inhibition Failure and the Disease Process

2010-12-24T22:28:00.000-08:00

Enzyme Inhibition failure in Disease Processes

Unusual enzymatic variations of prominent enzyme systems have long been known to be important markers of a broad spectrum of afflictions from inflammatory reactions, such as pancreatitis, all the way to carcinomas. These enzyme markers not only indicate the likely presence of carcinomas, but are also effective predictors of likely therapeutic outcome. Theories abound as to the link between the two, but a comprehensive and clear understanding of the relationship between particular enzyme variations, such as Tumor Associated Trypsin Inhibitor (TATI), and degree of tumor severity, has yet to be established.

In an environment devoid of the necessary balance of elements, enzymes will act on any element which they are designed to act upon, without regard to effect. Strange as it may seem then, DNA does not control its’ own destiny; its’ destiny is decided by the very proteins that are required to build, repair and reproduce it. Those proteins regulate every process in the cell, and when the proteins which regulate reproduction are damaged or destroyed, reproduction runs wild.

While a wide variety of elements can damage our cells’ proteins, the very enzymes designed to digest proteins to nourish us, under certain conditions, can instead damage and destroy every molecule in our body. Destruction of proteins can mean loss of membrane integrity, loss of primary function and ultimately, loss of the inhibitory controls that regulate the reproductive process. It is a clever design really, ensuring that even under highly challenging conditions, the template will be reproduced. With an intact template, survival remains possible, allowing for the possibility of repair and recovery under the most heinous and threatening conditions, right up to the very end.

The traffic keepers in all this are enzymes, and the inhibitory factors which regulate enzyme activation. An insufficient level of enzyme production can result in malnutrition, structural failure, functional failure and energy loss, amongst others. Insufficient inhibitory factors can lead to tissue destruction, loss of membrane integrity and ultimately, loss of regulatory control. Destruction of cyclins, for example, by proteases, or other enzymes gone wild, would result in loss of reproductive control. Both processes obviously can ultimately result in death.

Trauma to one member of a cell colony is seldom sufficient to kill a multi-cellular organism. Our body has numerous controls designed to limit the damage to surrounding cells in the event one or a few members are damaged or lost for whatever reason. One of these, apoptosis, can limit the damage to surrounding members by simply digesting the damaged cell. Apoptosis, however, requires functionally regulated proteins to happen. If the same difficulty which causes a cell to lose regulatory control also effects the mechanisms which control apoptosis, this important systemic response is lost.

Even if there is no loss of function in this system, there is no doubt a limit as to how much damage can be repaired at any given time, and if a large number of systems are suffering damage and stress, then the body simply may lack the resources to recover them all. Finally, there is always the potential problem of potential damage to healthy tissue in the event of a chronic apoptotic response due to widespread and ongoing damage. This last concern seems a promising avenue of research for diseases ranging from autoimmune diseases to leukemias.

If one looks at all acute and chronic illlness on a spectrum scale, we may find that everything we call disease is merely a range of responses to failed protein production, protein damage, failed enzyme production and failed enzyme inhibition. For example, pancreatitis contains two of the same protein markers that are found in pancreatic cancer, allowing at least the supposition that pancreatic cancer results from long-term enzymatic damage to pancreatic cells, which eventually results in loss of functional control.

It has long been known that cancer cells share a common metabolism, that of of gluconeogenesis. Gluconeogenesis is the reverse counterpart to so-called Kreb’s cycle metabolism. It is normal part of any cells metabolic cycle, particularly at times of stress, such as nutritional depletion found in sleep. Chronic gluconeogenesis however, is a highly destructive process which can result in the self-digestion of a cell by its’ own enzymes.

There is no reason to think that any system in a cell is immune from degradation, and even if there were, protein turnover in the body demands constant replacement of the proteins and enzymes necessary to regulate every process in the cell, and the body. A cell under stress, a cell which is busily digesting its’ own elements merely to survive, is unlikely to have the resources necessary to effectively police its’ own functional elements, or to produce substances necessary to keep the larger system in balance. Cortisol exposure induces gluconeogenesis in all cells, and has effects that can last for weeks, or indefinitely should cortisol-inducing stresses not abate. It is in this way that stress by itself can cause a large number of disorders absent any other factor.

Stress though comes in many packages, and while chronic gluconeogenesis might be sufficient to cause a depletion in protease inhibitory factors, for example, through the mechanism described above,, nutritional deficiences can make it impossible to produce the necessary regulating proteins . Chronic subcllinical dehydration could do the same merely by producing body ph’s which inhibit necessary protein production, or create an environment so unstable that even if the protein is produced, it is lost before it can perform its function, or altered due to the harsh conditions found in our theoretical cell. Insufficient or excessive heat, pressure or light could do the same, or cause some systems to go into overdrive while others shut down.

All of these elements effect how and if enzymes work, and work properly. All enzymes require a specific substrate and set of conditions to perform their jobs normally, let alone optimally. In the absence of proper substrate and necessary conditions, function will suffer, even if the enzyme survives.

Production and regulation failure of proteins and enzymes in the body due to a host of largely social and environmental factors, is fundamental to disease processes, and thus to disease treatment. Understanding the myriad of factors affecting those systems, offers the opportunity for carefully tailored therapies whose effects are understood in advance of treatment, giving hope for safe, and more effective treatments.

Patrick O”Brien

Daughter cell death and Darwin: A mechanistic model for cancer causation and treatment

2010-12-21T15:29:00.000-08:00

It was Charles Darwin who observed in his seminal work On the Origin of the Species, that the reproductive rate of biological organisms directly correlates to threats to its young in the environment. There are broad implications in this statement that have a bearing on everything from herd management to chronic illness, but the focus here is on the modern plague of cancer.

The essential element of cancer is cellular reproduction run amok, and theories range from environmental elements to genetic determination and various combinations of the two. None however have been able to provide a workable model for effectively preventing and treating cancer, without the ravages of surgery, radiation and chemotherapy and sometimes in spite of all these. Most importantly, none explain the primary mechanism which drives cancer, creating a therapeutic chaos of hit and miss.

Enter Darwin: Under this model, the young, the offspring we are talking about are so-called daughter cells, the offspring of the stem cells from which all other cells are derived in many if not all multi-cellular organisms. The rate at which those daughter cells die then would be the determining factor in the reproductive rate of the mother cells, the stem cells.

There are a myriad of potential factors that of course pose a dramatic threat to daughter cells and mother cells. No matter what the particular threat is, what is more important in this particular case, is the mechanism by which those threats kill daughter cells, and thus stimulate reproduction.

All cancer cells have one thing in common; they share a common metabolism, so-called gluconeogenesis. It is the reverse counterpart to Kreb’s cycle, also known as the Citric Acid Cycle. Gluconeogenesis is a normal metabolic response to hunger and stress, but chronic gluconeogenesis is a highly destructive process. It literally involves the digestion of the organism by its own enzymes, the breakdown of complex organic molecules into their basic constituents, an open bath of free nucleic acids, amino acids, sugans and fats, which under the right conditions of temperature, pressure, and light, create a ripe environment for the growth of other, potentially pathogenic organisms.

While enzymes are essential for life, they are a two-edged sword. Enzymes function according to dynamic equilibrium, that is according to the balance of elements in their environment, under given conditions of temperature , pressure and light. Thus, a cell which is undernourished reverses the processes of biosynthesis, to undergo gluconeogenesis, and will maintain that direction until proper nourishment arrives, or death comes.

Once their host cells’ resources are exhausted, the enzymes would simply begin to act upon any organic material in the region in keeping with its’ function. In other words, they would begin to digest other nearby cells, creating an inflammatory response, threatening the existence not only of daughter cells , but of stem cells. Attempted degradation of stem cell DNA certainly holds great potential for triggering the reproductive response: the greater the number of daughter cell deaths, the more profound the response. Thus, under this model, the best way to alleviate and even reverse tumor growth, is to alleviate the condition which causes daughter cell death.

Those conditions, in addition to temperature, pressure and light (which can accelerate or decelerate enzyme activity), would seem to come under two categories: Simple chronic malnutrition under stress, potentially complicated by lack of rest, poisons, traumatic injury, again a myriad of factors, all with the same result: driving chronic gluconeogenesis, accelerating daughter cell death, accelerating reproduction.

The second category would be a lack of specific factors which inhibit enzyme actions.

One example of this latter factor would be trypsin inbitors: Trypsin is a digestive enzyme commonly found in the pancreas, among other places. In the absence of a trypsin inhibitor, under the right conditions, it will act, and can aggesively digest any surrounding tissue which fits into its’ capabilities. A lack of the elements necessary to create trypsin inhibitors, say through the lack of crtical elements in the diet, would cause trypsin to always be active, and attack the very tissue which produced it.

It is worth noting, that the most aggressive cancers, and the most deadly, are all found in enzyme-rich areas of the body. Pancreatic cancer, in particular, is considered a virtual death sentence in humans. In certain predatory animals, mouth and throat cancers can be particularly aggressive, and such animals certainly have a rich source of enzymes found in their mouths, enzymes which digest meat for example, thus requiring proteins and inhibiting elements to prevent those enzymes from digesting any unprotected tissue in the animal itself.

The theory is easy enough to test: Grade tumors from benign to malignant, and then test for the presence of broad spectrum enzyme and enzyme inbitor activity. In the event this model is a valid diagnosis of the problem, such testing should show a linear relationship between cell-degrading, enzymes, and DNA degrading activity in particular, and tumor growth. Regardless of outcome, it is time that cancer researchers focus their efforts on threats to daughter cell populations with potential to trigger the reproductive response first discovered by Darwin.

Patrick O’Brien

Rooster

2010-12-01T02:53:00.000-08:00

Eight years ago today, the rooster died. It was 10:30 am.

Rooster

2010-03-09T06:46:00.000-08:00

We called him Roo-ster. On the stand, she said, "We called him Rudy Rooster." We called him Rooster. And we still do."

Advice from Consumer Reports

2010-03-01T08:12:00.001-08:00

Print Email

In this report: Overview; Cashing out instead of checking out

Cashing out instead of checking out

Last reviewed: February 2010

If you have a cash-value life insurance policy, there are at least eight ways to get cash from it. Discuss them with your financial adviser to determine which is best for your situation.

Borrow against it

This is a good option to meet temporary financial needs. The interest rate is typically lower than you'd pay elsewhere because it's a secured loan. If you die before you pay back the loan, the death benefit is reduced by the loan balance and interest due. You can also use your insurance policy as collateral to secure a loan from a bank, credit union, or lender other than the insurance company.

Withdraw from it

With some policies you can withdraw part of the cash value, minus fees and possible partial surrender charges. Your death benefit is reduced by the amount withdrawn, and sometimes by more.

Annuitize it

In a "1035 conversion," the cash value is changed into an immediate annuity, which starts making regular payments right away for a set number of years or for the life of the "annuitant"—you, or you and your spouse together. Dual annuitants get smaller payouts than single ones. Pay extra to add a death benefit if you opt for a single annuitant, because otherwise, if your spouse outlives you, he or she will collect nothing.

Claim accelerated benefits

If your policy has an accelerated death benefit (ADB) feature, and you're likely to die within two years because of cancer, kidney disease, stroke, or certain other diseases, or you suffer from specific medical conditions like Alzheimer's disease, you may be able to collect 50 to 80 percent of your death benefit to pay medical, nursing, or other bills. You must continue paying the premiums, and the policy's death benefit is reduced by the ADB plus interest.

Tap the disability benefit

If your policy has this feature, you may be entitled to receive monthly payments if you're totally and permanently disabled.

Outlive it

Most permanent life insurance "matures" when the policyholder reaches 100. If you live that long and coverage is in force, the insurer will pay you the death benefit minus any previous withdrawals or outstanding loans.

Sell it

You may be able to sell your policy to a "life settlement" company for more than its cash value. The buyer makes the premium payments and receives the death benefit when you die; your beneficiaries get nothing. Byron Udell of Accuquote.com warns that your policy could be resold to an unsavory buyer. You have no control over a resale, says Tom Alger, a spokesman for the Iowa Insurance Division. Consult your accountant, tax adviser, and state insurance department before selling.

Cancel it

This is usually a bad choice because the net cash-surrender value provides the lowest benefit. You'll generally owe federal income taxes on any gains above the total premiums paid, plus you'll pay surrender fees.

Eric Cantor's remarks

2010-02-28T08:45:00.000-08:00

Eric Cantor today said if Nancy Pelosi rams the health care bill through the House with reconciliation they will lose control of the House. That may be true; but it is also true that if the Democrats don't pass a bill, they will lose control of the House. Their only chance of holding on to the House and Senate is to pass a bill and make it work.

Republican responsibillities on health care.

2010-02-28T07:53:00.000-08:00

Given the future estimated costs of health care to the federal, state and local government, Republicans need to explain how they intend to pay for those unfunded liabilities without a reform package. We are talking about trillions in unfunded liabilities for Medicaid and Medicare, and without meaningful reform, whatever form it takes, taxes will either go through the roof, the deficit will explode from its already astronomical levels or our entire public budget will have to be designated for it. Additional tax deductions for private insurance, in other words, additional public subsidies of private health insurance, will only make those problems worse, and is inappropriate from a party complaining about government involvement in health care. Or simply repeal all government subsidies for private insurance and quit being hypocrites about government involvement in health care. If government involvement is going to be called socialism, or bolshevism, quit subsidizing the market, now. Since the government passed Medicare and Medicaid in the sixties, health care costs have been rising at the cost of eight to ten percent a year, except in years when health care reforms were being seriously discussed. So get the government out of the business entirely, or make it work, and quit making political hay while health care costs slowly strangles economic growth.

Passing a cost containment bill

2010-02-28T07:43:00.000-08:00

Passing a bill that addresses fraud and abuses in the health care system first, would probably build public and political support for the President's plan.

if you have confidence in your government

2010-02-26T01:10:00.000-08:00

Then you have no reason to buy international health insurance. If you think your government might favor the rescue of a mandarin's child over yours, then perhaps, for a few dollars, you would like to have the assurance of having a private company, based in the United States, and bound by the rule of law, which has a stake in your survival, (and can even profit by it). If you had been in Haiti, or in a tsunami, would your government have thought of you as a priority?

The Chinese invented insurance, but the market perfected it. American insurance companies are bound by law and the courts to honor any promise they make. Any promise. This is a matter of established law and practice in the United States, in each and every state. And with me in your corner, oh my, forgetaboutit.

Fee padding

2010-02-25T15:54:00.001-08:00

So I had to get an HIV test a few years ago because a dental technician working on my mouth stabbed herself with a hypodermic that had my blood on it. So I went to get the test and after a physical the doctor recommended that I get a cholesterol test. I didn't need it and I told him so, my cholesterol numbers have always been great. Anyway, I got it and the result was fine. He suggested I get a more comprehensive test. I declined. I don't how much it cost, but it wasn't free, and the more comprehensive test would of course have been more expensive.

Back in my single days, I went to get an examination at Planned Parenthood in Madison. I had what turned out to be a pimple that had resulted from poor hygiene; I found that out from a dermatologist I consulted later, it took him about fifteen seconds to figure it out. Planned Parenthood had no idea what it was, but as I mentioned I was preparing to begin a relationship with someone, they insisted I take a chlamydia test. I'll spare you the details, but it involves a procedure that most men would just as soon never experience. I told them I was fine, that if I had an infection I would know it, but after two or three separate nurses came into the room and all but demanded I take it, I submitted. I felt violated and doubly so when it turned out I was right. How much did it cost? It wasn't free, I didn't want it, didn't feel I needed it and it turned out to be unnecessary. Plus, I had to pay the dermatologist later.

This argues for keeping a relationship with one medical professional for as long as you can, to avoid unnecessary tests and avoiding unnecessary risks, to avoid unnecessary suffering, death and unnecessary costs. How do you do that? I don't know, but the brainiacs in Washington should think of something. Higher reimbursement costs for physicians with longer patient relationships perhaps. It would also require making physician records publicly available so that people can make informed decisions about physicians before signing up, which would require some kind of standardized measures for evaluating physician competence. If you think the teachers oppose standardized evaluations, I think the AMA would make them look like pikers. Same thing for hospitals; all of which could dramatically reduce the cost of care at the source, by sending incompetent practitioners packing at the first opportunity, lessening the need for tort reform, and lessening the strain put on our courts due to medical incompetence.

Ads by Google

2010-02-25T15:46:00.000-08:00

Ads that run here, with the exception of the Amazon, Apple and Rush Passport service, are run by Google. I do not endorse or not endorse any such ads; that is up to you. I disagree with the ad which seeks to unseat Russ Feingold, who I think is the best senator in the United States, but again if you choose to endorse it, well, God Bless America.

Give them tort reform

2010-02-25T15:35:00.000-08:00

If Obama wants Republican votes all he has to do is allow them to write a tort reform measure and pass it separately from the current bill. Getting it through will require the support of Democrats; something the Republicans must bear in mind. Lawsuit costs are an insignificant portion of the health care bill anyway; perhaps one or two percent, but tort reform as an issue has been stopping health care reform for decades. So give it to them and make sure to bring in witnesses from states that have already passed tort reform, like Wisconsin and Michigan, to be sure all the weaknesses are addressed first. If it succeeds it reduces health care costs and everybody wins; if it fails, the Republicans will have to answer for it.

Paul Ryan's health care proposal

2010-02-07T08:00:00.001-08:00

might be something Obama can support. It's sounds like a federal pool buy-in as an alternative to Medicare. What are the details? Go ask Paul Ryan.

Hiring a Vet and a Vet Tech.

2010-02-04T16:14:00.000-08:00

Looking for a veterinarian who will make house calls in the country around New Glarus. We will pay $100 an hour, plus a mileage stipend and cost of medications and equipment. Anyone interested can e-mail me at info@independentllifeandhealth.com, and describe the availability we can expect, as well as your experience along with character references. We are looking for a vet who prefers a conservative approach meaning using medications and medical procedures only as a last resort, with an emphasis on preventative care for the well, and tlc for the sick. Obviously the greater your availability, the greater the likelihood that you will be hired. Weekend on-call availability is a must, days and nights. All night shifts during the week must be covered. In the past year, this would have necessitated six night visits in that year, three of those just in the past week, and perhaps twenty times in seven years. The position can also be rotated among several well-qualified candidates so long as all shifts from six pm Friday until eight am Monday are covered. Otherwise you will be paid for a once monthly visit at the above rate. During normal business hours during the week, the rate will be fifty dollars an hour, but is based on your availability.

Looking for a vet tech with above described philosophy, willing and able to do basic diagnostic procedures and administer basic oral hygiene, pill cats, administer fluids, supervise sick animals and on occasion, assist licensed vets with our animals. Weekend availability is a must, days and nights, and all night shifts during the week. The position can be split among many well-qualified individuals, so long as all shifts are covered. The candidate should expect to work perhaps thirty nights a year, primarily supervising and administering basic tlc and medical care as respite care for the primary caregivers, us, and evaluating symptomatic cats for needed care. The position pays thirty dollars an hour plus a mileage stipend and cost of supplies and medications.

Snowbud died today

2010-02-04T14:26:00.000-08:00

Our seven month old, and perfectly lovely little tomcat Snowbud, died today just short of his eighth month. He died under anesthesia while having a catheter inserted. He was a beautiful white cat with black markings on his head and tail. His best kitty friends were Yaz and LT, and he was recently seen sleeping next to his mommy, Button. He had two siblings, both adopted by good families. We will miss him greatly. He was a good friend in hard times. God bless him and give us the grace to remember the good times we shared, right up to the last day, rather than his death. He was a shining light, and his absence is deeply felt.

Technical problems

2010-01-31T17:59:00.000-08:00

We're having problems getting audio on the page; as soon as we have the problem sorted we will schedule a concert. sorry again

Concert delayed until 6 pm Central Time

2010-01-31T10:38:00.000-08:00

Sorry y'all. See you at 6.

Webcam concert tomorrow 12 pm CST

2010-01-30T22:16:00.000-08:00

I will be performing a small concert at the stated time. I will be singing and playing the guitar and performing original material as well as some of my favorite covers.

Democrats have to bite the bullet

2010-01-20T01:42:00.000-08:00

and have the House pass the Senate bill. If the Republicans want to start citing Massachusetts as a national trend, well, that would be a pleasant change as well. The country needs decisive action on health care right now. It is the largest cost driver in homes and businesses today, and thus the largest threat to long-term personal prosperity. If Mr. Brown has something positive to bring then let him propose a compromise while the ballots are certified.

IMG in Haiti

2010-01-14T13:32:00.001-08:00

(INDIANAPOLIS – JANUARY 14, 2010) - Following the powerful earthquake in Haiti, International MedicalGroup^® (IMG^®) responded immediately and began assisting its customers affected by the disaster. According to IMG, it has been working with customers in Haiti and many are reporting first hand the substantial damage within the country.

“Our initial news is of the mass devastation,” said Joseph Brougher, President of IMG. “We have
representatives in Haiti and we are working with service providers and military personnel in coordinating medical evacuations of several of our customers that require immediate treatment for life-threatening injuries.”

The 24 hour clinical staff of IMG’s medical management service division, Akeso Care Management^® (ACM^®), is assisting those in need of immediate service, as well as working with those not requiring emergency evacuations due to injuries. ACM’s Chief Medical Officer, Dr. Jonathan Hart, has directly dealt with several natural disasters, including Hurricane Katrina.

“We’re currently working with cases of those severely injured and are expecting to see additional requests from those not wounded by the earthquake, but who fall ill with the ongoing impact of food and water shortages,” said Dr. Hart.

The extensive damage from the earthquake has created significant communication problems with those in Haiti. According to Mr. Brougher, “We’ve been working through the limited communication sources that are available, ranging from social networks to satellite phones. Whatever it takes to get our customers taken care of is our focus right now. As we were during the tsunami in South Asia and other global disasters, we are fully equipped and prepared to help our customers. Their safety is our number one priority.”

International Medical Group, Inc.
2960 North Meridian Street, Indianapolis, Indiana 46208
Telephone: 800.628.4664 or Intl: 1.317.655.4500
Fax: 317.655.4505
Email: insurance@imglobal.com
Website: www.imglobal.com

As U2 said...

2010-01-03T14:40:00.000-08:00

Nothing changes, New Year's Day.

Life insurance vs annuities

2009-12-31T12:01:00.000-08:00

I have a friend with a lot of voracious children who is still paying yearly premiums on a large life insurance policy with a large payout to the kids. Now, I still haven't sold my first annuity, and my only life customer fell through on technical grounds, but I think if I were say, seventy-five I would sooner put the money into a yearly annuity premium designed to fund whatever it is my seventy- five year old friend wants to do for his kids with his money. Designate what the money is for, term of payout and whatever terms that are important to him, or simply who to pass it on to: Annuities give you a lot of control over how your money is spent, and give a lot of bang for the buck, particularly in an uncertain economy. Guaranteed income is guaranteed income, and I'd say that's worth a lot

Machu Picchu Trail

2009-12-21T02:18:00.000-08:00

Was filthy; at the time people were crapping openly in vicinity of drinking water; cow crap, forget about it. We had a hand-pumped water filtration system, and that worked great. No intestinal parasites. Our "friend" put iodine in the water we gave him, which was a waste of iodine. Some German tourists got ripped off by their guides; I missed a clear opportunity to help them, though as it turned out we had sufficient supplies. It was a bad miss. We were fighting openly at the top, thin air or just real disagreement. So maybe the people of Machu Picchu all argued until everyone got bored and moved to the richer oxygen environment of the gentler climes from which they came.

Dilweg

2009-12-20T21:17:00.000-08:00

Date:	December 17, 2009
To:	All Licensed Agents and Agent Licensing Sections of All Insurance Companies Licensed to do Business in the State of Wisconsin
From:	Sean Dilweg, Commissioner of Insurance
Subject:	Guidance Regarding Use of the NAIC/NIPR Attachments Warehouse for the Electronic Filing of Insurance Producer Licensing Documents

The Office of the Commissioner of Insurance (OCI) continues its efforts to utilize and participate in the national license database in collaboration with the National Association of Insurance Commissioners (NAIC) and the National Insurance Producer Registry (NIPR) in order to be more efficient and to streamline filing requirements. This bulletin provides information regarding recent improvements that permit applicants or licensees to electronically file required documents when applying for or renewing an insurance license and allow licensees to satisfy the statutory requirements regarding notification and reporting of all administrative and criminal actions as required under s. Ins 6.61 (16), Wis. Adm. Code.

Effective immediately, OCI will accept the electronic notification and reporting of an action submitted electronically on behalf of an insurance producer through the NAIC/NIPR Attachments Warehouse. OCI will recognize the reporting of the action to the Attachments Warehouse, the subsequent e-mail alert to the division, and the state's ability to retrieve, review, and download the attachment as fulfilling the requirement of a producer to notify and report an action under s. Ins 6.61 (16), Wis. Adm. Code.

Attachments Warehouse
The Attachments Warehouse is a secure regulatory database that electronically receives, stores, and shares licensing documents with the states that are submitted with respect to an application or renewal of an insurance producer license through the NIPR, a non-profit affiliate of the NAIC. If supplemental documentation is required with respect to an individual application, renewal, or notification of any criminal or administrative action, this documentation may be submitted via the Attachments Warehouse.

Notification and Reporting of Actions (ROA)
The Attachments Warehouse may be used for an insurance producer to satisfy the requirements for the notification and reporting of administrative and criminal actions to the Commissioner under s. Ins 6.61 (16), Wis. Adm. Code. An insurance producer may send the required notification and documents to the Attachments Warehouse electronically instead of faxing or mailing the information to OCI.

For further information regarding the use of the Attachments Warehouse, contact the Agent Licensing Section at (608) 266-8699 or ociagentlicensing@wisconsin.gov, or visit the NIPR Web site at www.nipr.com.

Reveal corruption, earn a $1

2009-12-18T23:11:00.000-08:00

The first 100 Green County residents to tell a true story of official corruption, (on this site of course) subject to verification, will earn $1. See. Eliminating corruption can be profitable.

Wisconsin rules on insurance solicitation from OCI

2009-12-10T07:00:00.000-08:00

ARE THERE ANY SPECIAL REQUIREMENTS FOR DOOR-TO-DOOR OR
PHONE SOLICITATIONS BY AGENTS?
Every insurance intermediary engaging in home solicitation selling, advertising, or offering
services in home solicitation selling or providing supervision over sales practices used in
home solicitation sales shall clearly and expressly disclose, at the time of initial contact or
communication with a buyer, the seller’s individual name, the name of the business firm or
organization represented, a statement of the fact that insurance is being sold, the identity of
the insurer, if the solicitation is primarily for a single insurer, and the type of insurance being
solicited.
If the seller receives a check or cash, the seller shall give to the buyer a receipt or other
document evidencing the transaction showing the date of the sale, a description of the type
of policy applied for, the total price paid, the individual name of the person making the sale,
and the name and mailing address of the insurer issuing the policy.
Persons engaging in home solicitation selling shall not:
• Represent directly or by implication that the seller is making an offer to specially
selected persons unless such representations are true and the specific basis for
such representations is stated at the time the representation is made.
27
An Intermediary's Guide to Wisconsin Insurance Law, 19th Edition, July 1, 2009
• Represent that the seller is conducting a survey, test or research project or engaged
in a contest or other venture to win a cash award, scholarship, vacation, or similar
prize when the principal objective is to make an insurance sale or obtain information
to help identify sales prospects.
• Use any false, deceptive or misleading representations to induce a sale, or use any
plan, scheme or ruse which misrepresents that the person making the call is
selling insurance, or fail to leave the premises promptly when requested to do so.
[ch. Ins 20]

Bye Bye Bricks

2009-12-06T09:34:00.000-08:00

On-line retailing has so many advantages, it is difficult to see bricks and mortar establishments surviving against them. Rent, utilities versus a web page with fixed costs, and the retailer has the ability to sell any group of items together that suit his/her customer base, combining professional with retail in a way that would just look goofy in a traditional office.

Office of the Commissioner of Insurance, announcements

2009-11-20T11:38:00.000-08:00

Beginning January 1, 2010, all health insurance policies and self-insured health plans of the state or of a county, city, village, town, or school district must provide coverage to eligible adult children up to age 27 if their parents request the coverage.

OCI recently completed a survey of title insurance premiums in Wisconsin. Insurers were asked to provide the average premium rate for owner, lender, and refinance policies for specific home value ranges on a county basis. Consumers can search on their county, type of policy and home value to get a basic idea of what the average premium rate that title insurers have collected for 2009.

To follow appropriate links or get more information, go to the home page of the Wisconsin Office of the Commissioner of Insurance, who by the way is Sean Dilweg.

Interesting link

2009-11-18T00:48:00.000-08:00

Boston Apartments.com advertises international apartment rentals, something I've thought a lot about while staying in another dump, or a nice overpriced place, while on vacation. One week lease? I don't know. Have to take a look.

Health insurance can save your life.

2009-11-17T23:59:00.000-08:00

Alright. So, I had an early court date, and I was kind of drowsy, and the Rolling Stones were on the radio, and I fell asleep at the wheel. My eyes snapped open, too late, can't clear the other lane, brake both feet, Blues Brothers-style, watching the shock wave move up the hood and boom!, no seat belt brace yourself, the cabin is caving in, holy shit! Wandering, in shock, call mother, makes it there with the ambulance, to the hospital, cut on my forehead, ankle swollen badly, maybe broken, and then they demanded to see my insurance card. Mother has to call father, delay, delay, delay....then mother is back, and voila! entrez vous. Anyway the point is if I'd had a serious head injury, I could have died of a cerebral hematoma before a doctor even looked at me. So kids, carry your card, and mom and dad, if you can afford it, get them a card, and make them carry it.

And if you say, well the guy was in a serious car accident, maybe he's not right in the head, I'd say, the delayed medical report says otherwise.

Travel insurance, story 1

2009-11-12T09:05:00.000-08:00

So, his sister made all the arrangements, but the travel company booking their rooms went bankrupt and he thought he had travel insurance with the booking company, but now he doesn't know. He's now going to have to pay out of pocket for all their lodging, after already paying the company once. If you buy your own travel insurance, average cost about 4% of the cost of the trip, you will know your trip is secured, and avoid putting all your eggs in one basket. Not appropriate for every trip, maybe, but big ticket trips, for an extra 4% who cares? Another friend had a bunch of trips planned with his wife, but now they both have health issues that won't always allow for it. If you see yourself here, maybe time to tag on that extra four percent, so you don't lose 100%. Mitigating risk, a little for a lot, is what insurance is all about.

For soldiers on Veteran's Day

2009-11-11T08:59:00.000-08:00

I pray for peace for the soldier, that they return to be our friends and neighbors. I pray for peace that they might never again need be a soldier, and that all will live in peace under one law. I pray we all receive the peace of mind necessary to a peaceful life. I pray they will all have a peaceful life, that our children may never know war. By Thee and none other, amen.

Wisconsin LTC requirements

2009-11-08T18:37:00.000-08:00

Wisconsin requires anyone who sells Long-term care insurance to complete a training course. I have not taken this course which is why I will not be selling anyone LTC insurance until I do. In the meantime, however, AARP does have an online LTC calculator which one can use to compare to all material aspects of any competing individual policy.

Compare Medicare/ Medicare Supplement coverage....

2009-11-08T11:25:00.000-08:00

....before you buy. Use our url link to the federal govenment's Medicare website. Easy to use. Click Medicare supplement button, and click on the url.

Do you need insurance?

2009-11-05T13:09:00.000-08:00

When it's done right, insurance is about reducing risks. If you buy too much insurance, you're wasting money, which increases your risk. If you buy too little, you take an imprudent chance, which is shared by those you care for. No one can reduce risk to zero, and I don't think anybody wants that. Just making sure there is enough to get by, nothing glamorous. Meanwhile, pay your bills, do your work, take care of what needs taking care of and leave the rest. If the worst happens, and even in this world it doesn't happen all that often, insurance pays the bills, finishes your work and takes care of what needs taking care of.

Investor protection act

2009-11-05T09:25:00.000-08:00

In a report by National Underwriter online, (which I recommend for anyone who is interested in the insurance business, or just in buying insurance), they disclose the little-heard of Investor Protection Act moving out of committee and toward the House floor. The federal legislation would require both investment advisers and producers (a fancy name for insurance agent) to act in the best interest of the client without regard to the financial interests of the company. This is already the standard for producers in Wisconsin, so it would be nice if the rest of the country would catch-up, and level the playing field. The proposed enforcement regimen is promoted as rigorous, but even if that proves true, will any of it survive the easy temptations of easing enforcement during the next boom? If history is any guide, the answer is a clear no.

Romania

2009-11-03T08:04:00.000-08:00

Buna dimineata.

It's up to you.

2009-11-02T10:21:00.000-08:00

If you simply need a question answered, you can call me anytime before 12 am, or e-mail me, and I will answer your question without condition, and without demanding any personal information. I will never try to sell you any insurance product unless you request it, and will never recommend anything I don't feel you honestly need. I also will never object to you seeking a second or third opinion, in fact, I recommend that you get as many opinions as you are able to reasonably do. Finally, I will never give or sell any personal information to anyone, (except when necessary to process your application and see that you get the service you need) and will never initiate any attempts to sell you insurance, even after I do get your personal information. I will post as much information in this blog as I can so you can decide for yourself if you need more insurance, or any, before we talk. Insurance agents are liable for any promises they make, and if you ever feel I, or anyone else, has violated a promise they made to you, report those violations in Wisconsin to the Office of Commissioner of Insurance. My website of course is an attempt to sell the products that people need, but my web pitches are the only pitches you will hear until you request otherwise. You can remain anonymous until it otherwise becomes absolutely necessary.

GlhC quotes available

2009-11-02T10:17:00.000-08:00

This from GHC to yours truly:

"We typically turn around these quotes to you the same day or next day at the latest."

Michael Polk

GHC-SCW Sales Consultant

10 day right of return

2009-11-02T09:19:00.000-08:00

You have ten days from the time you receive your policy from the insurance company to review your policy and cancel without penalty. If you are having trouble getting a premium refund, or are confused about your coverage, contact the Office of the Commissioner of Insurance to get your questions answered or file a complaint. They have a handy on-line complaint form. I can also help you get your questions answered free of charge.

Replacement Insurance

2009-11-02T09:01:00.000-08:00

One of the leading, if not the leading area of abuse in the insurance industry is so-called replacement insurance. It is an area so fraught with hazards that I will not write replacement insurance. I asked my teacher in insurance school if replacement insurance was ever appropriate, and she paused then answered, "Rarely." if I recall correctly. Anyway if your agent recommends replacement insurance, check with another agent, or contact the Office of the Commissioner of Insurance if you live in Wisconsin, or your local insurance regulator if you live elsewhere to be certain you meet the criteria, which are highly specific. The rules regarding replacement insurance in Wisconsin follow below. If you are preparing to purchase replacement insurance and you have questions about it, I can help you get the answers you need, free of charge.

Date:	September 29, 2009
To:	All Insurers Authorized to Write Life Insurance in Wisconsin
From:	Sean Dilweg, Commissioner of Insurance
Subject:	Section Ins 2.07, Wis. Adm. Code, relating to replacement of life insurance or annuity contracts; disclosure requirements

The purpose of this memorandum is to summarize the repeal and recreation of s. Ins 2.07, Wis. Adm. Code, which became effective on July 1, 2009, and applies to life insurance and annuity solicitations beginning on November 1, 2009. The amended rule establishes minimum standards of conduct to be observed by insurers and producers in life insurance and annuity replacement or financed purchase transactions to ensure disclosure of material information to purchasers and to reduce opportunities for misrepresentation and unfair business practices. The rule expands and clarifies the information that must be communicated by a producer to a purchaser at the time an application is completed and provides disclosure notice formats to ensure uniformity. The rule is based upon a model regulation adopted and recommended by the National Association of Insurance Commissioners (NAIC).

You should carefully review the amended replacement rule and this memorandum to understand how the changes apply to your company. It is each insurer's responsibility to ensure that its free-look notices, replacement notices, and related procedures are in compliance with the new regulation.

Section Ins 2.07 (2), Scope

The regulation includes a number of modified or new exclusions not previously included in the prior replacement rule that insurers should review. Among them, the rule does not apply to transactions involving group life insurance and annuities used to fund prearranged funeral contracts, proposed life insurance to replace coverage under a binding or conditional receipt issued by the same insurer, new coverage where the cost is borne wholly by the insured's employer or by an association of which the insured is a member, an existing non-convertible and non-renewable term life insurance policy that will expire in 5 years or less from the date of issue, immediate annuities that are purchased with proceeds from an existing annuity contract, and structured settlements.

Section Ins 2.07 (3), Definitions

Insurers should carefully review a number of new definitions in the regulation that were not previously included in the prior replacement rule. Especially important are the new definition of "financed purchase" and the reworded definition of "replacement."

Section Ins 2.07 (4), Duties of Producers

The new regulation requires a producer to submit to an insurer, with or as part of each application, a statement signed by both the applicant and the producer as to whether the applicant has an existing individual life insurance policy or annuity contract in force, including a policy under a binding or conditional receipt or a policy or contract that is within an unconditional refund period.

The prior replacement regulation required a producer to provide the applicant a replacement notice only when the transaction involved replacement. The new rule now requires the producer, if the applicant answers "yes" to the question regarding having existing coverage, to present and read aloud to the applicant the notice regarding replacement, unless the applicant chooses it not to be read. If the replacement questions in the notice are answered "yes," the notice must list each life insurance policy or annuity contract proposed to be replaced or used in a financed purchase. The notice must be signed by both the applicant and the producer. A copy of the notice must be left with the applicant, and a copy must be submitted to the insurer with the new application for coverage.

If replacement is involved, a producer must leave with the applicant, at the time the application is completed, the original or copy of all illustrations and other sales material used during the sales presentation. If electronically presented sales material was used, a printed copy of the material must be provided to the policy or contract holder no later than at the time the policy or contract is delivered. A producer is also required to submit to the replacing insurer a statement identifying any company-approved sales material that was used during the sales presentation, as well as copies of any individualized sales material and illustrations that were used. However, If an insurer requires its producers to use only company-approved sales material, the insurer may, as an alternative, require with each application a statement signed by the producer that he/she used only company-approved sales material, rather than a statement identifying the company-approved sales material that was used.

Section Ins 2.07 (5), Duties of Insurers that Use Producers

Insurers are required to obtain with or as a part of each application for life insurance or an annuity the signed statements and replacement notices as required in this rule. If an application does not meet the requirements of this rule, insurers are required to notify the producer and applicant to fulfill the outstanding requirements.

Insurers are also required to establish and maintain a system of supervision and control to ensure compliance with this rule that, at a minimum:

informs producers of the requirements of this rule and incorporates the requirements into relevant producer training materials,
provides to each producer a written statement of the insurer's position on the acceptability and written guidance regarding the appropriateness of replacement transactions,
reviews the appropriateness of each replacement transaction that the producer does not indicate is in accordance with the insurer's position on replacements,
confirms that the requirements of this rule have been met,
establishes procedures to detect transactions that are replacement transactions, but have not been reported as such by the applicant or producer,
may include systematic customer surveys, interviews, confirmation letters, or other forms of internal monitoring.

The new rule requires insurers to monitor and keep specific records concerning their producers' replacement transactions and make such records available to the commissioner upon request.

When an applicant has existing policies or contracts, insurers are required to maintain and make available to the commissioner upon request any sales material required by sub. (4) (e) of this rule, any illustrations related to the policy or contract that is purchased, and the producer's and applicant's signed statements with respect to replacement for at least 5 years after the termination or expiration of the proposed policy or contract. Records may be maintained by any process that accurately reproduces the actual document.

Section Ins 2.07 (6), Duties of Replacing Insurers that Use Producers

When replacement is involved in a transaction, the replacing insurer is required to:

verify that the required forms are received with the application and in compliance with this rule,
notify the existing insurer of the replacement within 5 business days of receiving a completed application indicating replacement or when replacement is identified if not indicated on the application, and mail a copy of the available illustration, policy summary, or disclosure document for the proposed policy or contract within 5 business days of a request from the existing insurer,
be able to produce copies of replacement notices, indexed by producer, for at least 5 years or until conclusion of the insurer's next regular examination conducted by the insurance department of its state of domicile, whichever is later,
provide to the policy or contract owner notice of the right to return the policy or contract within 30 days of delivery of the policy or contract (previous rule required a 20-day free-look) and receive a full refund of all premiums or considerations paid, including any policy fees or charges, or, in the case of a variable or market value adjustment policy or contract, a payment of the cash surrender value plus the fees and other charges deducted from the gross premiums or considerations or imposed under the policy or contract.

In transactions where the replacing insurer and the existing insurer are the same or subsidiaries or affiliates under common ownership or control, the replacing insurer is required to give credit for the period of time that has elapsed under the replaced policy's or contract's incontestability and suicide period up to the face amount of the existing policy or contract. For financed purchases, the credit may be limited to the amount the face amount of the existing policy is reduced by the use of existing policy values to fund the new policy or contract.

If an insurer requires its producers to use only company-approved sales material, the insurer may, as an alternative, require with each application a statement signed by the producer that he/she used only company-approved sales material, rather than a statement identifying the company-approved sales material that was used. However, if this alternative is chosen, an insurer is required, within 10 days of the issuance of the policy or contract, to have a company representative whose duties are separate from the marketing area of the insurer, write or verbally contact the applicant to notify the applicant that the producer has represented that he/she left copies of all sales material with the applicant, stress the importance of retaining copies of the sales material for future reference, and provide the applicant with a toll-free number to contact the company representative if the producer did not leave the sales material with the applicant. Insurers are required to maintain a copy of the letter that was sent to the applicant or documentation of verbal communication with the applicant in the policy file for at least 5 years after the termination or expiration of the policy or contract.

Section Ins 2.07 (7), Duties of the Existing Insurer

Within 5 business days of receiving a notice that a policy or contract is being replaced, an insurer is required to send a letter informing its policyholder or contract owner of the right to receive information regarding his/her existing policy or contract values. The information concerning policy or contract values must include an in-force illustration or a policy summary if an in-force illustration cannot be produced and must be provided within 5 business days of receiving a request from the policy or contract owner.

An insurer, upon receiving a request to borrow, surrender or withdraw any policy values, is required to send a notice advising the policyholder or contract owner that the release of policy values may affect the guaranteed and non-guaranteed elements, face amount or surrender value of the policy. The notice must be sent separately from the check if the check is sent to anyone other than the policy owner. In the case of consecutive automatic premium loans, the insurer is only required to send the notice at the time of the first loan.

An insurer is required to retain all replacement notifications it receives, indexed by replacing insurer, for at least 5 years or until the conclusion of the next regular examination conducted by the insurance department of its state of domicile, whichever is later.

Section Ins 2.08 (8), Duties of Insurers with Respect to Direct Response Solicitations

In direct response solicitations, an insurer is required to obtain, with or as part of the completed application, a statement as to whether the applicant intends to replace an existing policy or contract. If the applicant indicates that replacement or change is not intended or if the applicant fails to respond, an insurer is required to send, with the issued policy or contract, a notice regarding replacements as specified in the rule. If the applicant indicates that replacement or change is intended, an insurer is required to send, with the issued policy or contract, a replacement notice requiring the applicant's signature, as specified in the rule. An insurer is deemed to have made a diligent effort to secure a signed copy of the replacement notice if it includes in the mailing a self-addressed postage prepaid envelope with instructions for the return of the signed notice.

Section Ins 2.07 (9), Violation

A pattern of transactions where policy and contract owners of the same producer subsequently replace existing life insurance policies or annuity contracts after indicating in their applications that replacement was not their intention will be considered evidence that the producer had knowledge of the replacements and intended to violate this regulation.

Rule Appendices I, II, and III

Insurers may make minor changes to the replacement notices described in the rule's appendices if approved by the commissioner. No approval is required when modifications are limited to deletion of references to the producer in direct response solicitations including the producer's signature line and references not applicable to the product being sold or replaced. Insurers using SERFF may submit modified notices to the OCI for approval using the filing type "Life Replacement Notice" when submitting the filing.

* * * * *

This memorandum is a summary of the new life insurance and annuity replacement regulation. A copy of the full text of the rule, including appendices containing the required replacement notices, can be obtained from the Web site at: http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Public Information and Communications, at:

Phone:	(608) 264-8110
E-mail:	inger.williams@wisconsin.gov
Address:	125 South Webster St., 2nd Floor, Madison WI 53703
Mail:	P.O. Box 7873, Madison, WI 53707-7873

Questions concerning the requirements of s. Ins 2.07 can be e-mailed to:

Mike Honeck
Chief of Health & Life Section
mike.honeck@wisconsin.gov

Updated: September 29, 2009

Home Agent Company Consumer En Español Department Site Index How to Contact Us

Medical evacuations, IMG

2009-11-02T07:49:00.000-08:00

According to an IMG representative, the company performed one hundred medical evacuations last year. "To date there is nowhere in the world where we haven't been able to do a medical evaluation from."

IMG Extreme sports rider coverage, fine print

2009-11-02T07:36:00.000-08:00

The following hazardous activities are excluded unless the Extreme Sports Rider coverage is purchased: abseliing, aviation (except when traveling on commercial aircraft), BMX, bobsleigh, bungee jumping, canyoning, caving, high diving, hang gliding, heli-skiing, hot air ballooning, inline skating, jet skiing, kayaking, mountain hiking, paragliding, parascending, rappelling, rock climbing, sky diving, snow skiing, snow-boarding, snowmobiling, spelunking, surfing, trekking, wind-surfing and whitewater rafting.

The following activities are not covered even with extreme sports rider coverage: BASE jumping, mountaineering, cllimbing or trekking above elevation 4500 meters above ground level, or without proper ropes or guides,luge, motocross, Moto-X, rodeo activity, ski jumping whitewater rafting exceeding Class V difficulty, and or extreme sports not expressly covered hereunder are excluded regardless of which plan or rider is selected.

This is copyright protected material of IMG.

Nepal

2009-10-31T20:05:00.000-07:00

Namaste.

中文

2009-10-31T10:24:00.001-07:00

Ni Hao.

Questions for GHC

2009-10-30T21:54:00.000-07:00

I'll be meeting with a sales rep from GHC (Group Health Cooperative of South Central Wisconsin), next month, Nov 23, I believe around 12:00. I'm licensed to sell GHC products, but I don't really know that much about them, beyond what their ads say, and that a local bartender is in their commercials. Great bartender by the way. Anyway, I'm going to be spending a lot of time thinking of questions for the fellow, and anyone out there who has questions can e-mail them to me, even during the meeting. I'll try to answer and blog live during the interview. First come, first serve.

Fancy doo-dads

2009-10-29T23:54:00.000-07:00

So I responded to a sales e-mail for a fancy doo-dad, a term quoter for the site so my customers could get quotes for life insurance right here, right away. This particular one though was a lead generator that did not give immediate quotes but one of those stupid messages that someone would contact you shortly, unless you gave all your health information and were well-suited to the principal insurer the brokerage house does business with, in which case you would get a call right away. It was very limited but I was willing to live with it, until I found out that I would have to get permission "from the home office" before I could post information regarding insurers on my blog. An independent agent would need permission from the home office. So no fancy doo-dad, not yet; I'm going to hold for an immediate rate quoter that gives the information directly to the consumer and only generates leads if the consumer decides he/she wants to buy, after he/she gets a quote. Why there isn't a rate quoter for all insurance products along these lines, is a disgrace to the industry. Always pumping for leads, oh well. So no fancy doo-dads for life insurance, not yet. Caveat emptor.

Whole life or term?

2009-10-28T09:37:00.000-07:00

Whole life has a bad reputation. Term life has been recommended by consumer advocates for years, by Ralph Nadar among others, with the idea that the money saved buying term insurance can be invested in the market, which gives much better capital growth. In the current economic climate though, is locking in low rates on a guaranteed payment, conserving capital in the long-term, look better than a term plan plus market investment? I'm opening this discussion for everyone. Many people are shy about the market now, with good reason perhaps, and for an inexperienced investor, does that make whole life a better deal? Also, what companies do you like best for whole life? For term? Facts and figures please, no sales pitches.

Please call first

2009-10-27T15:53:00.000-07:00

While you are able to buy insurance here without having to speak to me, I recommend that you call or e-mail me before finalizing your purchase. That way, all your questions will be answered before you buy, and you will understand your coverage better. Also, I can help better in the event you need to use your insurance because I will know something about you.

IMG's snswer

2009-10-27T12:21:00.000-07:00

Evacuation for grave injury involves a thorough process of finding the quickest way to safety and or treatment as geography allows. Carla described to me one case from Peru where they paid to have an airport opened to facilitate a medical evacuation. They cover evacuations even in Antarctica . The cost of coverage which was prior reported at 1.45 a day, is actually 1.95 a day for a man 30-39, and coverage must be purchased for a minimum of five days. An extreme sports rider is available for an additional twenty percent of medical coverage premium. The coverage is provided everywhere, even in war zones, but the special terrorism attack coverage is not provided in those areas. Carla said that the original purpose of international health insurance was to cover missionaries, so missionaries could well consider this. Trip cancellation coverage with the medical coverage is 4.5% of the cost of the trip. Stand alone trip cancellation coverage includes coverage for members of the armed forces, police and fire workers who are called to active duty, as well as weather, labor unrest amongst others. I'm sure many of you have found yourself trapped in an airport during bad weather, so something to think about. Stand alone trip cancellation insurance is 4% of trip cost and 4.5% for elite coverage. Any other particular questions please blog me or send me an e-mail at info@independentlifeandhealth.com. You can also call me at 608-527-4833.

A new stupid question for IMG

2009-10-23T10:30:00.000-07:00

Hello Carla,

Let's say there was an earthquake, and one of my client's was seriously injured on the Machu Picchu trail. The earthquake cuts off all normal travel routes to Cuzco and Agua Caliente, the nearest town to the trail. If my client was from California, how would they be transported and how long would it take to get them to the nearest available help? How long would it take them to get home? What riders in retrospect would it pay to have for such an event and how much would it cost? How about if my client was from China?

Patrick O'Brien
Independent Life and Health.com

IMG's answer

2009-10-23T10:15:00.000-07:00

Dear Patrick,

Thank you for your e-mail.
The best product for a trip to Machu Pichu would be Patriot Travel
Medical(r)
We have been selling international medical insurance products for 20
years and Patriot Travel continues to be one of our best selling
products. The cost is inexpensive and is based on the policy maximum the
client would like their age and deductible.

For example: $500,000 worth of coverage, with a $250 deductible for a
30-39 year old will cost $1.45 daily

Our premiums are written on the brochure already so the client is able
to see how much it will cost. I have attached a PDF of the brochure for
your convenience. The client is able to choose the deductible and their
effective date according to their needs. Usually the product becomes
effective the day they leave the US so they may be covered on their long
flight to Lima.
Our products are inclusive of the necessary medical benefits for travel
with the option to add riders if desired including for trip
cancellation. All of our products include medical evacuation, terrorism
coverage and political evacuation as these are very important when
traveling abroad. If you have someone that may want even more coverage
we have another product available as well.

Patrick, do you a particular organization that you work with that
focuses on travel to this specific location?
What is your IMG producer # and address so that I may send you a full
kit of our products?

If you would like to discuss our products we can also schedule a
conference call at your convenience.

I look forward to hearing from you.

Best Regards,

Carla Haith

I'm sending the insurance companies all my stupid questions......

2009-10-22T22:36:00.000-07:00

If you have any stupid questions of your own, please contact an insurance company, and then post their answer here. Or you could ask me to submit your stupid question for you, if you're too scared of the insurance companies. They are scary, but....

Knowledge is money in the bank.

A request of IMG

2009-10-22T21:34:00.000-07:00

I am inquiring about custom travel insurance packages with IMG. Here is my message in a bottle.

I think my clients' interest would be well-served, if we could assemble customized insurance packages for travelers. Which products would be advisable say for a trip to Machu Picchu ? What would that cost for two days, or seven days, including travel or starting in Cuzco, (the launching point for Machu Picchu). A day by day schedule of the products best suited for this location and that location all along the way? The point is to allow the consumer to take as little or as much risk as they want, but to know the costs, and thereby to judge what they need and what they don't, to calculate exactly how much they need before they submit an application.

Patrick O'Brien
Independent Life and Health.com

Let's see what comes back.

In the Dark Ages

2009-10-22T18:22:00.000-07:00

Some of the quote/buy/review brochure/benefits pages may require a Safari browser. Some insurance company websites might require a PC although I believe all the ones on this page are Mac accessible. If you want help deciphering the language, if you need some questions efficiently answered before you buy, please call me, or make an appointment by e-mail. I would be glad to talk you through the process. There is also a Medicare Supplement insurance comparison page run by the Feds through Health and Human Services, I believe. I would glad to take you to and through that site if you wish, and submit your application for you, if you wish.

Insurance tips

2009-10-22T09:49:00.000-07:00

First of all, group coverage is nearly always available to anyone, and is usually cheaper than individual coverage, with better benefits. Before you buy an individual policy, it is usually best to explore what group options are available to you. Even if your benefits at work are not great, if they offer life or health insurance, or any other kind of insurance, check into it, and compare it to individual policies. In Wisconsin, individuals can purchase up to $50,000 of life insurance without needing an agent, directly from the state, through the Office of the Commissioner of Insurance, at very cheap rates. Joining AARP qualifies you for cheap rates on group supplemental insurance, long-term care insurance, and perhaps many other kinds of insurance. Check with every group to which you belong, and any creditable group you are aware of. I joined the Wisconsin Farm Bureau and thus qualified for a low-cost group coverage plan for my automobile insurance. My mother received a private quote of $3600 a year for long-term care coverage, and the guy told her he was doing her a favor. I got a quote from AARP for a generous ltc plan that was around $1800 or $1900 a year, maybe a little more, but in any case substantially less than individual coverage.

What are your needs?

2009-10-21T11:01:00.000-07:00

So, using the basic formula I outlined above, if you have a child of 3, and a legally/financially significant other, in a one income house of fifty thousand a year, one strategy would be to buy a package that insures at fifteen times fifty, $750,000 a mortgage of say $250,ooo, that would mean one million dollars a year of life insurance. I would want what is called a declining term life package, which means each year the insurance amount decreases by the amount of decreased need, meaning one years income and the mortgage in this case, and so the premium goes down each year. The problem is, finding a declining term life product. The last time I asked about declining term life, the person I was speaking with didn't know what I was talking about. I'm sure there's one out there, anyone who knows, don't be shy about telling us.

Anyway, in our case scenario we recommended a term life product, hopefully a declining term life product of fifteen years for one million. The reason for the fifteen year term is to insure until the child turns eighteen, and use that time period to raise your savings/investment portfolios to the amount you initially insure yourself for. It doesn't mean cancel your insurance after that; it just establishes a minimum baseline to guarantee a minimum standard of living for any surviving decedents in the worst case scenario. If the party desiring insurance is a smoker, and wishes to qualify for the lower rate of non-smokers, a one year term life product, usually non-renewable, can give you the year you need to qualify for a lower rate in a longer term product, so long as you quit and stick to it. You'd want guaranteed convertibility to a fifteen year product at the end of the first year, in case something else arises in that first year that might otherwise have a material effect on your ability to purchase insurance. Is that available in this market? Ask around; ask any agent you see about what they recommend, but always make the important decisions, amount, type, premium and term after thoughtful consideration of the alternatives. But don't dawdle; if you need insurance get it; if you want to look around get something short-term while you look. don't get caught short trying to cover all the angles at once.

One more thing

2009-10-19T09:11:00.000-07:00

There is only one good reason to buy insurance, any kind of insurance: to mitigate costs to avoid financial ruin, for you or your decedents. One penny more of insurance than you need is wasted money because that money could be invested instead. Too little insurance and there will be financial stress on top of all the other stress found in difficult times. These are the criteria consumers should use when buying.

Life insurance is primarily a tool for replacing lost wages, savings etc., as a result of unexpected death. So take your wages per annum and multiply them for whatever period it is you want to insure; you can add in your mortgage if you want, if you have one. That's basically what you need in life insurance. Health insurance is more personal; some people tend to be sicker than others, so you have to judge which type of person you are. Regardless of your relative health, by tolerating a higher deductible you can get significant coverage for a relatively small amount of money; if you use an HSA that could even be tax-deductible. Many health organizations provide routine care for low-cost so you can have a high-deductible and still avoid the temptation of delaying needed care to save money. I am not recommending HSAs in particular, pro or con; this is just an example of the kind of calculation people need to make to make sure their insurance is tailored to their personal/financial conditions.

Disability should be looked at by anyone who works for a living; if you can't afford it, you can't afford it, but many people probably can. Think about living forty or fifty years without the income from a regular job, medical costs on top it. Just find out how much a basic disability package would cost you, and then make your decision. One of the things about buying the right amount of insurance is that insurance can be affordable so long as you have the right agent, and you know how much you need, and not one penny more.

Annuities are a hedge against running out of income before you die; so you know there will always be a minimum standard of living so long as you are alive. They can also be used as a means of guaranteeing returns in times of economic insecurity; to see to it that things which are important to the particular person or organization, are given the financial support they require for the period that is wished.

First case scenario

2009-10-16T17:03:00.000-07:00

A family of three two adult parents, one child. One parent stays at home the other works in Madison making 50,ooo a year. The child is 3 years old. They have a twenty seven years left on a thirty year mortgage at 1100 a month and two years left on a car payment at 323.oo per month. How much life insurance do they need, and how should it be structured? Can they afford disability insurance? How much would each cost, and with what firm? No fuzzy numbers now.

To clarify

2009-10-14T22:35:00.000-07:00

F&R who I referenced in an earlier blog as a captive agency, are not in fact a captive agency, at least not as far as I know. They do have what I consider to be captive practices, incurring obligations of new agents and actively discouraging the sale of any other insurance using their leads. Captive practices are those I consider to have the effect of captive agency while maintaining the appearance of independent agency representation. This is my opinion and should be judged only according to the experience of many agents, and let the chips fall.

Private or blog?

2009-10-14T21:46:00.000-07:00

If you want me to find insurance for you, please submit via one of the page headings, or direct via my e-mail at info@independentlifeandhealth.com. If you would rather submit it on this blog, I suggest a generic formula male 46 etc., to protect your privacy and then let any agent submit what they could do for you, find what you want before contacting the agent privately, then hold them to the promises they make. Properly licensed agents are welcome to blog their offers to any prospective customer, but any illegal or questionable claims will be submitted to the OCI or other regulatory agency. Since this is a publicly available site, you will be competing not only on price and benefits, but on observing the letter of the law in public bidding. Furthermore I discourage consumers from dealing with any broker who does not provide their full name, and appropriate state and federal producer numbers, which can be easily referenced in many states. Contact your local state licensing agency for more information.

Problems with state laws

2009-10-14T16:16:00.000-07:00

First of all, I'm sorry but captive agency should be outlawed. A captive agent has their first loyalty to the company and the company expects it. The only reason to hire a captive agent is because a company is afraid its product can't make it in the free market, but depends instead on marketing to sell an overpriced or under-servicing product. I interviewed with a number of captive firms: One expected me to buy leads, another practice that should be outlawed. With the others, it seemed clear to me that if I sold anything but the company product, they were not going to be happy. Farmer's talked about having a procedure for it, a procedure. F&R told me not to use their leads to sell someone else's insurance, and required me to attend a training session that I would be reimbursed for when I was hired. Any practice which lead to the agent feeling obligated, or having actual obligations to the captive agency, cannot be in the best interest of the client.

In addition, while pursuing a pay complaint against Blue Cross Blue Shield, I was informed by OCI that I would have to pursue the case through DWD; as if I were an employee of the health care company. Failure to pay agents in a timely fashion, is a potential warning sign and thus should be treated as a serious matter by OCI, complete with investigations as to whether the practice is singular or widespread. And to have insurance agents treated as employees of insurance companies is out of keeping with the agent's primary role as an intermediary acting in the best interest of his client, not the best interest of insurance companies.

Is there an insurance company that is....

2009-10-13T00:07:00.000-07:00

all electronic for all life and health products? Not that I am aware of; if someone knows different please let me know. I don't believe it; they all should be paperless, beginning to end, including vastly simplified online applications, increased agent requirements, strict notification guidelines and subject to review at anytime by licensed federal and state authorities, and consumer advocates.

Annuities

2009-10-12T14:20:00.000-07:00

It seems to me the one product that is not receiving near enough attention is the annuity. Annuities, fixed annuities in particular have a guaranteed rate of return, and can even be structured to assure a minimum payout. It is a safe bet with the right company in a world where gold is going through the roof because people are desperate just to preserve what they have, and not lose any more value. You can set up an annuity to provide all your fixed household costs with inflation. You can set it up to payout in ten years or twenty years for whatever you want, all with a guaranteed rate of return in what are turbulent times with few guarantees.

Primerical didn't make the appointment.

2009-10-12T13:56:00.000-07:00

I arrived at 2:30, as scheduled, and there was no receptionist, just a sign that I should sit and wait if I was there for an interview. I decided to wait ten minutes. At 9 minutes and counting, Kevin, who I have spoken with a couple of times, came out said hello and asked if I was meeting with Dave. I said yes, and Kevin disappeared shortly then came back and said Dave would be with me in a couple minutes. I thanked him, and as soon as he was gone, I left out the other door. You don't keep people waiting if you're bullletproof. You make your appointments, because that way people at least know that you keep your appointments, because some people feel that being late is a show of disrespect, and who wants to work with someone who doesn't respect them? Anyway, onward and upward. It seems to me, that insurance agents, mortgage writers, securities analysts and retirement planners can form their own teams without needing an investment firm behind them. And if there's a team out there, there's an insurance agent with a website whose wants to work with anyone who is bulletproof. And for anyone who just needs their insurance needs analyzed, we can blog about it here without needing any names, and without the need for me to come to your home. That way, you know what you're buying before we ever meet, no surprises.

Bulletproof

2009-10-09T11:50:00.000-07:00

I interviewed with a group called Primerica last night, and they said they were with the citi companies, which could mean citigroup or might not. Anyway, it seems the big banks are assembling commando teams of mortgage writers, insurance brokers, investment brokers and retirement planners, to help everyone write down their current costs, and build up their bank accounts. Such services used to be the plaything of the rich, but now the banks have realized that if a lot more people just take care of the basics, they can have a whole new class of rich clients in ten or twenty years. In the meantime, they collect a fee, and as people save more money, the banks will have more money to lend, in this time when money is dear. While this is a tremendous opportunity for banks and consumers to work as a partnership, government and consumers and banks must be sure that bad actors are weeded out before they can get started. Stronger professional standards must be adopted by individuals involved in the business, and government must keep on eye on attempts to load up on fees, or any practice whose costs exceed any reasonable benefit, particularly with regard to the innocent, and the vulnerable.

We have to be bulletproof.

Business insurance.

2009-10-09T11:37:00.000-07:00

In order to secure a business loan, it is typical for a bank to demand so-called key-man insurance, or key-woman if you prefer, insuring the life of the business owner(s). I have to carry E&O insurance which protects my clients against any material errors or omissions on my part. Right now, I carry one million but can move it up considerably once business takes off. Make sure your broker has E&O before you start talking about anything, for your own protection. Mine is with NAPA, the National Association of Professional Agents, and for new agents that's a good tip. It offers group rates for anyone with an insurance license, and at considerably lower prices than individual policies, and maybe even lower than E&O offered to captive agents, who can choose to buy their own E&O rather than that offered by the companies you work for.

London

2009-10-08T00:56:00.000-07:00

England. I love the British, even the ones that hate me. I've made more friends in England than anywhere in the world, including America. One place I stayed at in London had a bar attached. I was having a fantastic time, drinking Newcastle beers for two pounds a pop. The place was packed and hopping; apparently everyone was having way too good a time because a fight suddenly erupted in front of me which involved two thugs beating the hell out of a tall Dutch fellow. I pulled the little guy off him, and the man immediately jumped back on the guy and began wailing on the guy's skull, while his massive friend was just letting the guy have it. So I grabbed the little guy again meaning to toss him back a couple feet to get him away. Instead, he went flying, without even trying, I threw the guy about ten feet. It took about five or six guys to restrain the other guy, and even then, I think he was still trying to kick the guy. Don't get me wrong; I love London.

Open mics in Green County

2009-10-07T13:35:00.001-07:00

Anyone hosting an open mic in Green County please post it on this blog.

On the roads of Freiburg

2009-10-07T08:24:00.000-07:00

So I was trying to go to Hamburg to visit someone I met in Italy, but instead ended up in Freiburg by way of Basel. As I crossed the Swiss-German border, the border guard said something in German. When I simply looked at him, he said in only slightly inflected English, "Your papers, please." I felt a chill run down my spine. Anyway, no problems there. I got a ride from a fellow named Roman, who drove me to Freiburg, and showed me around. Roman had studied geology at the university, but decided he wanted to be sculptor instead, against his father's wishes of course. He had just made his first sale for which he was paid, I believe, 1200 marks. He bought me breakfast with some of that money. "Salt or sweet?' he said. I didn't understand. "Oh let's get both. I am a rich man" he said, and laughed. Salt means basically eggs and sausage and the like, sweet, pastries and such. We toured the downtown area, and he showed me through the amazing cathedral there, which was the only structure that had remained after Freiburg was fire-bombed during the war. I still remember his voice as he translated the commemorative plaque, giving the date of the event the city of Freiburg was, he hesitated and said it was a difficult word to translate then said, "destroyed", the day the city of Freiburg was destroyed.

At the hostel, I met up with a fellow from Ireland, Canada and two Australians. We went out to the local bar, and had been there for a while when one of the guys said he was talking to a guy that only spoke German, and did I speak any German? I speak some German, I understand more than I can speak. Anyway the very drunk man began to speak, and after fifteen seconds or so, I turned to my group and said, "I don't understand a word he said" and we all laughed. The very drunk fellow gave us a very adventurous ride back to the hostel, where we arrived about five minutes before they were going to lock the doors, happy to still be alive

I've been there

2009-10-05T07:47:00.001-07:00

If your traveling in any of the places I've talked about, I'm glad to point you toward some of the highlights of my own travels, whether you buy insurance or not. Feel free to ask.

Machu Picchu

2009-10-05T07:30:00.000-07:00

So, my wife and I were climbing the Machu Picchu trail, max. elevation 4350 meters if I remember correctly, and I suddenly noticed that the trail had narrowed, and we were now walking less than a foot from the edge of a trail that had a sheer drop with a bottom I could not see. We were carrying fairly heavy backpacks so it was a rather precarious situation we had walked into, without warning and without handrails.

"You might want to move to the left a bit" I said, trying to avoid startling her. She looked to her right, grunted a bit, then moved over to her left.

You never what you're going to run into until you get there, which is a good reason to have the insurance you need for whatever you do. They don't allow people to climb Machu Picchu without a guide anymore, which is a pity, but understandable given stories like this one.

Hitch-hiking acrross Europe

2009-10-03T01:15:00.000-07:00

So this guy picks me up in, wherever, somewhere in Western Europe, and he asks me if I'm nervous about hitch-hiking. What do you mean? I say. "Someone could stab you or something." I laughed. "Uh, no, I hitch-hike in America, and there they have guns.". I was quite the devil may care lad. Anyway, IMG has health insurance for travelers who aren't so blithe about their life and health. Not that I recommend hitch-hiking. It can be quite dangerous.

Ah, Karaoke Eddie

2009-10-02T22:36:00.000-07:00

So my favorite place in Amsterdam was a bar called The End. I saw a fantastic rock/folk show there, and Karaoke Eddie, an expatriate Belgian who ran, and I'm sure still runs the greatest karaoke show ever, mainly because of the stage, the sound system, Eddie and the other stars. Eddie was a big Sinatra fan, so he sang Sinatra. I had myself introduced as Mike Talman, a character I portrayed in a Monroe Theater Guild production of "Wait Until Dark." most of the people there thought I was Mike Talman, except for the bartender who was keeping my tab under my real name. Anyway, the insurance related part is I had insurance so I was taken care of; any trip abroad is better if you're taken care of; and we also offer travel insurance. You can contact me directly at home, 608-527-4833, or simply hit the IMG url, and get a free quote, even buy online. No matter where you are, it pays to have insurance. But you really should go to The End. Karaoke Eddie rules.

Sept 11, 2001

2009-09-11T13:15:00.000-07:00

In the light of the September 11, 2001 attacks, I held my tongue on my usual pacifist propaganda when the Bush Administration announced it was invading Afghanistan. That was a huge mistake: It was an over-reaction to what had happened. We needed to focus on bringing in the culprits responsible. Instead, the chief instigator is still at large, and the necessity of his capture is now lost in failed plans for nation building in Afghanistan.

Osama bin Laden is still at large, and that is a victory for cowardice, and the murder of innocents which he perpetrated. We can leave Afghanistan tomorrow, and if we have Osama in hand, and alive, I know the victims will then have their justice. Bring him to an American court, bring his family to watch if they can bear it, and hear the stories behind the headlines and the obscure political objectives which have underscored it all. Everything but justice for the innocents, while the toll mounts, and with no end in sight.

Thoughts on the President's speech

2009-09-10T09:04:00.000-07:00

First of all, I have never heard a President called a liar during an address to the Congress, even when it was obvious they were lying. Second of all, once again we have arguments about immigration clouding normally thoughtful minds. We have an economic and political treaty with Mexico called NAFTA. It's time to negotiate a meaningful agreement under that treaty to provide a rational exchange of services: There is a huge demand for Mexican labor, but an equal need to pay for the services Americans provide them without hitting the American taxpayer. In exchange for setting up a regulated process of temporary labor exchange, including return, we could offer the Mexican government withholding taxes of Mexican nationals,, minus the costs of providing transportation and medical and economic support for that same group of nationals. Absent that, we could tax any business which employs aliens to pay those costs. Whether those costs are substantial or not, the average American objects to paying them, and with good reason: the businessmen who are the primary beneficiaries of such labor, should pay them, not the rest of us, absent an agreement with Mexico.

Another option

2009-09-03T12:16:00.000-07:00

Another option would allow every uninsured family in America to pick one person in the family to get health insurance. Perhaps just the sick one, or maybe the favorite. The one everyone will miss the most.

The thing about health insurance

2009-09-02T16:05:00.000-07:00

The thing about health insurance is the more people who join group coverage, the more efficiently care can be provided, so long as the physicians are competent. You have to know what your concerns are: mine are basic; sew my guts together, patch my skull and bones, basic restorative care, designed to return me to health, and not just manage my condition, unless I have a condition. Competent medical care can very widely even within one medical department; their breast cancer treatment may be aces, but their brain cancer treatment sucks. It often comes down to how committed medical teams are to their patients' needs and their own careful learning, .It requires personalized care, recognizes the strengths and weaknesses of any of a variety of approaches. There should be a public option but it should not be one option; every existing group should be allowed to accept any applicant for any other group, including existing public groups like state and federal employees, unions, any group that meets established guidelines for necessary care. Subsidize enrollment in group care private or public for persons with existing individual plans; allow group plans, even states to pool their resources, so long as established guidelines are met. Group care is always cheaper and (almost) never a worse option than private care so long as you find the right plan for your family, or yourself.

One agents opinion about Blue Cross Blue Shield

2009-04-03T23:02:00.000-07:00

From: info@independentlifeandhealth.com [mailto:info@independentlifeandhealth.com]
Sent: Thursday, April 02, 2009 11:43 AM
To: Cerfus, Rachel T
Subject: Re: getting paid

A bureaucratic nightmarel. Thanks anyway.

Patrick
Independent Life and Health.com

Cobra subsidy press release from Anthem,

2009-03-06T09:41:00.000-08:00

To view this email as a web page, go here.

To ensure delivery to your inbox, add the sender to your safe list or address book.
For instructions on how to add this to your address book, please go here.

March 5, 2009

COBRA Subsidy Action Plan and Compliance Update

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act (the "Act"), which includes several important changes to COBRA.

The Act provides for a federal subsidy of 65 percent of the COBRA continuation coverage premiums for qualified beneficiaries receiving COBRA continuation coverage due to the covered employee's involuntary termination of employment between September 1, 2008, and December 31, 2009.

The attached COBRA Subsidy Action Plan and Compliance Update provide detailed information.

If you have questions, please contact your Anthem Sales Representative.

Anthem Blue Cross and Blue Shield is the trade name of: In Indiana: Anthem Insurance Companies, Inc. In Kentucky: Anthem Health Plans of Kentucky, Inc. In Ohio: Community Insurance Company. In Missouri: Anthem Blue Cross and Blue Shield is the trade name RightCHOICE® Managed Care, Inc. (RIT), Healthy Alliance Life Insurance Company (HALIC) and HMO Missouri, Inc. use to do business in most of Missouri. RIT and certain affiliates administer non-HMO benefits underwritten by HALIC and HMO benefits underwritten by HMO Missouri, Inc. Life and disability products are underwritten by Anthem Life Insurance Company (ALIC). RIT and certain affiliates only provide administrative services for self-funded plans and do not underwrite benefits. In Wisconsin: Blue Cross Blue Shield of Wisconsin ("BCBSWi") underwrites or administers the PPO and indemnity policies; Compcare Health Services Insurance Corporation ("Compcare") underwrites or administers the HMO policies; and Compcare and BCBSWi collectively underwrite or administer the POS policies. Independent licensees of the Blue Cross and Blue Shield Association.®ANTHEM is a registered trademark. The Blue Cross and Blue Shield names and symbols are the registered marks of the Blue Cross and Blue Shield Association.

Cutting Health Care Costs, from National Underwriter's Life, an online publication

2009-03-05T06:33:00.000-08:00

Hewitt: More Companies Look To Cut Health Care Costs

By STAFF WRITER

Published 3/4/2009

Most large U.S. employers are still making large long-term investments in programs to improve the health and productivity of their workforce, a new survey by benefits consultant Hewitt Associates Inc. finds.

Cost pressures, however, along with political changes in Washington, could prompt some employers to reconsider their future role as a health care benefits provider, says Hewitt, Lincolnshire, Ill. Its recent annual survey covered more than 340 employers representing over 5 million employees.

The number of companies focused solely on cutting annual health care costs increased from 15% in 2008 to 31% in 2009. Hewitt also found 65% are continuing to make major investments in improving the health and productivity of their workforce despite the distressed economy. Nevertheless, 4% said they are taking steps that would allow them to stop providing health care benefits altogether.

While 75% of companies plan to focus on improving employee health and productivity in the next 3 to 5 years, 19% said their strategy is to move away from providing health care benefits directly, up from 4% in 2008.

Health care reforms being discussed by the Obama administration in Washington may be allowing these employers to see exiting health care as a more feasible choice than it used to be, Hewitt says.

“In today's environment, employers are under pressure to cut health care expenses, but they realize that short term cost-management tactics do not address the underlying drivers of health care cost,” said Jim Winkler, head of Hewitt’s North America health management consulting practice. “This leaves them with two options: making a long-term commitment to improving the health of employees and their families, or exiting health care altogether. Most companies believe that investing in the long-term health of their population is the most effective way to mitigate costs and create a more productive and engaged workforce.”

According to the survey, 52% of companies said the economic downturn will have an impact on their 2010 health care programs. It found that 65% plan to shift more costs to employees, and 49% expect to cut the number of benefit plans they offer. In addition, 33% plan to increase their focus on wellness programs, and almost 40% plan to increase the prevalence of consumer-driven health care plans.

Iowa Insurance Division

2009-03-02T10:32:00.000-08:00

Consumer Affairs Bureau

How We Can Help

What does your policy cover? Not understanding can be frustrating. Do you have a complaint about the way your insurance claim has been handled? In both instances, we can help.

Each year, the Consumer Affairs Bureau receives approximately 4,500 questions and consumer complaints. When necessary, the bureau conducts investigations and can bring disciplinary action against insurance companies and agents. In 1999, we were successful in returning $27 million to consumers from insurance companies.

For more information about how the Consumer Affairs Bureau can help you, select from the following topics.

Investor Education Program to Combat Securities Fraud

The Iowa Insurance Division announces Invest Smart, an education program to help Iowans recognize and avoid inappropriate and fraudulent investment schemes.

Filing a complaint

How to file a complaint against your insurance company or agent

Download a complaint form If you wish, you may type your information on the form before you print it.

Submit your complaint online - Please read our instructions on how to file a complaint against your insurance company or agent before proceeding to file your complaint online.

Agent/Company Search:

Find an insurance agent to meet your needs

Find an insurance company by name

Consumer Alerts:

Administrative Actions Taken Against Insurance Companies, Agents and Brokers

View Complaint Ratios for the following types of insurance:
Private Passenger Automobile Insurance
Homeowners Insurance
Individual Health Insurance
Group Health Insurance
Life Insurance
HMOs

Educational Materials:

Consumer Report Card - A guide comparing HMOs and ODSs doing business in Iowa

2002 (0.2 MB)
2001 (0.6 MB)
2000 (1.1 MB)

External Review - Request a third-party administrator to review your denied medical claims.

FAQ - Iowa's Privacy of Consumer Financial and Health Information Regulation (626 KB)

Holocaust Claims - Information regarding Holocaust survivors' claims against European insurance companies.

Report on Slavery Era Insurance

Selling Your Life Insurance Policy - Understanding Viatical Settlements.

HIPAA - Health Insurance Portability and Accountability Act

Additional Information:

Frequently Asked Questions - A list of the most common questions asked by consumers.

Contact the Iowa Insurance Division - Listing of phone and fax numbers as well as email and mailing address information so you can contact the Iowa Insurance Division

Senior Health Insurance Information Program (SHIIP) can help you find answers to the important questions you have on Medicare, Medicare supplement insurance, long term care insurance, and other health insurance issues. Created in 1990 by the State of Iowa Insurance Division, SHIIP has helped thousands of older Iowans sort through confusing health insurance information.

Insurance Fraud Information - The Fraud Investigations Bureau confronts the problem of insurance fraud through the prevention, investigation, and prosecution of fraudulent insurance acts in an effort to reduce the amount of premium dollars used to pay fraudulent claims.

Insurance Bulletins

Iowa Medical Malpractice Annual Report

2006

2007

Medical Malpractice Closed Claim Study and Rate Filings Review

United Health Care settlement information

Stimulus package and unemployed workers

2009-03-02T10:25:00.000-08:00

Date: February 24, 2009
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov

Federal Stimulus Bill Helps Unemployed Workers

Madison, WI—Wisconsin Insurance Commissioner Sean Dilweg recognized the changes to a federal law that allows recently laid off workers to continue their health care coverage. The changes affect workers eligible for health insurance continuation coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA).

"We know the cost of health care premiums for unemployed workers makes it difficult for them to purchase coverage," said Dilweg. "The COBRA subsidy will make it much easier for families to continue their health care coverage."

Under current law, most employees, spouses and their dependents who lose their health coverage under an employer's group health plan may continue coverage, at their own expense, for a period of time. Federal law addresses insured health plans and self-funded employer-sponsored plans in the private sector and those plans sponsored by state and local governments. State law applies only to health insurance coverage provided by a licensed health insurance company.

The American Recovery and Reinvestment Act of 2009, also known as the federal stimulus bill, that was signed by President Obama on February 17, 2009, made a significant change to health insurance continuation coverage, known as COBRA coverage, for workers who become unemployed during this period of economic stress. Under the stimulus bill 65 percent of COBRA premiums are subsidized for people laid off between September 1, 2008, and December 31, 2009. The subsidy is limited to nine months and available only to those without another source of group health insurance. Individuals who lost jobs after September 1, 2008, but who didn't sign up for COBRA at the time will get a second chance to do so. Employers must provide their former workers with a notice by mid-April. Individuals who receive these notices will then have 60 days to sign up for the subsidy.

Further information is available at the Department of Labor Web site http://www.dol.gov/ebsa/cobra.html.

It is important to note that the COBRA assistance contained in the federal stimulus package does not help displaced employees who lost their employer-based health insurance coverage because their employer went out of business. That is because in that situation there no longer is a health insurance plan to continue.

Dilweg encouraged Wisconsin residents who have any questions to contact OCI at (800) 236-8517.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.

Updated: February 24, 2009

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Mannerchor competing in Banff

2009-02-28T13:47:00.000-08:00

In a matter that has very little to do with insurance, the Mannerchor of New Glarus secured enough commitments, over 20 to make possible, and realistic to compete in Banff at this year's Sangerfest. Banff is reported to be a striking setting so bring your cameras, and cheer for the good guys. Always cheer for the good guys

Obama's proposed Medicare cuts

2009-02-27T07:40:00.000-08:00

Obama Proposes Steep Medicare Cuts

* By ARTHUR D. POSTAL

Published 2/26/2009
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The Obama administration wants to cut Medicare Advantage spending $175 billion over 10 years and to keep the estate tax at current, inflation-indexed levels.

The administration has included those goals in a 10-year budget blueprint released today.
The Obama administration also calls for increasing taxes on couples earning more than $250,000 per year and on individuals earning more than $200,000, and it would raise the tax on dividends for those earning above those amounts to 20%, from 15% today, starting in 2011.

Other tax changes for high-wage earners, such as reductions in the deductions for interest paid on home mortgages and on charitable contributions, also would be phased in.

Deferred compensation plans would be affected only if they were domiciled offshore.

Employees not covered by qualified retirement plans could save for retirement through automatic payroll deposit individual retirement accounts. Under the Auto IRA system, employees would be automatically enrolled in workplace pension plans—and would be allowed to opt out if they chose. Employers that do not currently offer a retirement plan would have to enroll employees in a direct-deposit IRA account that was compatible with existing direct-deposit payroll systems.

The authors of the budget blueprint also want to expand the “saver’s credit” provision, which is designed to help moderate-income and low-income families who contribute to 401(k) plans or IRAs.

The blueprint authors would modify the existing saver’s credit to provide a 50% match on the first $1,000 of retirement savings for families that earn less than $65,000. The credit would be fully refundable.

A copy of the budget blueprint is available here.

More details about the proposals should be available when the administration releases the full budget and an analysis of the budget this spring.

Cliff Wilson, president of the National Association of Insurance and Financial Advisors, Falls Church, Va., says the trade group’s members support the provisions regarding the estate tax as providing certainty, and also support the provision that would allow employees not covered by qualified retirement plans to save through Auto IRAs, as long as employees have an opt-out provision.

The changes “very well” may provide opportunities for agents to sell tax-advantaged products, but above all else, “taxpayers must be confident that the economy will grow in order to ensure there are incentives available for people to plan for their future and to save for retirement, as well as invest in their business,” Wilson says.

David Stertzer, chief executive of the Association for Advanced Life Underwriting, Falls Church, says the release of the budget proposal “should further activate what we expect will be a very busy legislative year.”

He welcomed the provision that would extend the estate tax at the 2009 level.

“Providing a decision with permanence during this time of economic unrest will enable families and business owners to plan their financial future with certainty,” Stertzer says.

The AALU will continue to seek to remove an “artificial and harmful barrier to planning by reunifying gift and estate tax exemption levels,” Stertzer says.

Stertzer says the proposals to increase taxes on the wealthy are likely to be controversial.

“There will be many critical decisions in 2009 and 2010 with major implications for the life insurance industry and the broader public—tax reform, regulatory reform, employee compensation issues, and health insurance reform,” Stertzer predicts.

The budget blueprint “is a post-stimulus bill kick-off of legislative consideration in which AALU and the broader life insurance industry will be heavily engaged,” Stertzer says.

The Medicare Advantage proposal is a reaction to estimates that, under current law, Medicare spends an average of 14% more per Medicare Advantage plan beneficiary than it spends on the average traditional Medicare plan beneficiary.

The Obama administration wants to use the Medicare Advantage cuts to help pay for setting up a universal health coverage program.

Under the administration proposal, the current system for setting rates would be replaced with a competitive system in which payments would be based on an average of private plans’ Medicare bids.

“This would allow the market, not Medicare, to set the reimbursement limits, and save taxpayers more than $175 billion over 10 years, as well as reduce Part B premiums,” according to the authors of the budget blueprint.

Karen Ignagni, president of America’s Health Insurance Plans, Washington, says the blueprint “sends a signal to the American people that this administration is serious about prioritizing health care.”

But cutting Medicare Advantage support “would force seniors enrolled in Medicare Advantage to fund a disproportionate share of the costs to reform the health care system,” Ignagni said. “A cut of this scale would jeopardize the health security of more than 10 million seniors enrolled in Medicare Advantage and would turn back the clock on innovative payment incentives to improve the quality of care that patients receive.”

The Automatic IRA proposal was developed by the Retirement Security Project, Washington. The proposal was endorsed by both by Obama and by Sen. John McCain, R-Ariz., during the presidential election campaign.

“We are delighted to see that the president has included Auto IRA in his budget,” says David John, a principal at the Retirement Security Project, Washington

The Auto IRA has “broad bipartisan, cross-ideological support, and has bipartisan support in Congress,” John says.

AIG wants more help

2009-02-25T02:31:00.000-08:00

* By ARTHUR D. POSTAL

Published 2/23/2009
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Washington

American International Group Inc. says it is negotiating for more government help, and CNBC says AIG is about to report a $60 billion loss.

AIG, New York, has not yet reported results for the fourth quarter of 2008, AIG spokesman Peter Tulupman says.

“We continue to work with the Federal Reserve Bank of New York to evaluate potential new alternatives for addressing AIG’s financial challenges,” Tulupman says. “We will provide a complete update when we report financial results in the near future.”

CNBC is reporting that AIG’s board is scheduled to meet Sunday in hopes of hammering out an agreement with the government.

The talks hinge on how the government can swap debt for AIG equity without violating rules that cap the government’s equity stake in AIG at 79.9%, CNBC is reporting.

If AIG cannot negotiate an agreement, company lawyers are preparing for the possibility of a bankruptcy filing, CNBC says.

AIG will need more cash because it is likely to report a loss of up to $60 billion, due largely to writedowns on commercial real estate and other assets, CNBC says.

The Treasury Department did not immediately respond to requests for comment.

A spokesman for Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, says, "The Federal Reserve handled all interventions with AIG. The Federal Reserve will recommend when, and if, Congress needs to be involved."

A spokesman for the Federal Reserve Board says the Fed will look into the issue.

The Treasury and the New York Fed have provided about $150 billion in assistance to AIG since Sept. 17, 2008.

The New York State Insurance Department takes the lead in regulating AIG's main insurance company subsidiaries.

David Neustadt, a spokesman for the New York department, said that, as far as he knew, the department had not been informed of the possibility of a $60 billion loss.

If it did know about such a less, "it would be inappropriate to comment" before any official announcement, Neustadt said.

Additional information was contributed to this report by Jim Connoll

Hartford granted two exceptions

2009-02-13T09:31:00.001-08:00

Connecticut Grants Hartford 2 Exceptions

* By JIM CONNOLLY

Published 2/13/2009
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Connecticut has given Hartford Financial Services Group Inc. permission to use 2 variations from the usual statutory filing regulatory requirements, the company says.

Hartford Financial, Hartford, disclosed the variations in a Form 10-K report filed Wednesday with the U.S. Securities and Exchange Commission.

Hartford says it was given approval regarding the use of 2 permitted practices in its 2008 statutory financial statements.

One was for statutory accounting for deferred income taxes, and the second was for statutory reserving requirements for variable annuities with guaranteed living benefit riders.

The deferred income taxes can be realized over 3 years instead of 1 year, and the asset recognition is increased to 15%, from 10%, Hartford says.

The VA reserving variation will permit Hartford to perform a stand-alone asset adequacy analysis that will reflect the whole VA contract, Hartford says. The analysis usually reflects only the benefits, expenses and charges associated with the riders for variable annuities with guaranteed living benefits riders.

The permitted practices increased statutory surplus for the life operations by $987 million as of Dec. 31, 2008, Hartford says.

Connecticut was the sole state to vote for a package of capital and surplus rule change proposals developed by the American Council of Life Insurers, Washington, during a recent meeting of the executive committee of the National Association of Insurance Commissioners, Kansas City, Mo. Sixteen insurance commissioners opposed the package.

Since then, several states have issued bulletins permitting some or all of the changes requested by the ACLI.

Consumer advocates are questioning why there is a discrepancy in the way commissioners voted and the bulletins that they are issuing.

Both Robert Hunter, an insurance analyst with the Consumer Federation of America, Washington, and Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, have asked why insurers are getting immediate relief when consumers are not being given immediate relief on issues such as credit scoring.

Similar questions came up at a recent insurance conference organized by the New York Society of Securities Analysts, New York.

Elizabeth Malone, a senior vice president with Wunderlich Securities Inc., Memphis, Tenn., who once worked for the NAIC, said that when regulators do things as a national group, they act to avoid “feeding the fire” for federal regulation. However, at the state level, she said, they have more leeway to give relief. “It is my understanding that in most cases, states are granting it.”

Connecticut Insurance Commissioner Thomas Sullivan explains the reasoning behind the use of the commissioner’s permitted practices authority in a memorandum issued Wednesday.

Sullivan writes about what he says is the unprecedented and ongoing global financial crisis, including the seizure of the credit markets.

Sullivan says companies must “fully substantiate” why an exception is needed and state what the impact of the request on the company, consumer and shareholder might be.

A financial benefit to determine dividends will not be entertained, Sullivan says.

Other states are starting to weigh in on how companies should be determining capital and surplus.

For instance, on Feb. 3, Iowa issued a bulletin that is similar to Connecticut’s announcement on how it will treat deferred tax assets.

Ohio issued a bulletin of its own Feb. 3 that says DTA relief is permitted if a company is within certain risk-based capital levels. Ohio also says variable annuity writers will be allowed to reserve for these products using Actuarial Guideline 39, and it says rules regarding the use of preferred class structure tables under Actuarial Guideline Triple-X will be temporarily relaxed.

Other states, including Illinois, Maine and New York, say that if a company is in trouble, states can address that on a case-by-case basis, and that no blanket capital and surplus relief will be provided.

Connecticut has given Hartford Financial Services Group Inc. permission to use 2 variations from the usual statutory filing regulatory requirements, the company says.

Hartford Financial, Hartford, disclosed the variations in a Form 10-K report filed Wednesday with the U.S. Securities and Exchange Commission.

Hartford says it was given approval regarding the use of 2 permitted practices in its 2008 statutory financial statements.

One was for statutory accounting for deferred income taxes, and the second was for statutory reserving requirements for variable annuities with guaranteed living benefit riders.

The deferred income taxes can be realized over 3 years instead of 1 year, and the asset recognition is increased to 15%, from 10%, Hartford says.

The VA reserving variation will permit Hartford to perform a stand-alone asset adequacy analysis that will reflect the whole VA contract, Hartford says. The analysis usually reflects only the benefits, expenses and charges associated with the riders for variable annuities with guaranteed living benefits riders.

The permitted practices increased statutory surplus for the life operations by $987 million as of Dec. 31, 2008, Hartford says.

Connecticut was the sole state to vote for a package of capital and surplus rule change proposals developed by the American Council of Life Insurers, Washington, during a recent meeting of the executive committee of the National Association of Insurance Commissioners, Kansas City, Mo. Sixteen insurance commissioners opposed the package.

Since then, several states have issued bulletins permitting some or all of the changes requested by the ACLI.

Consumer advocates are questioning why there is a discrepancy in the way commissioners voted and the bulletins that they are issuing.

Both Robert Hunter, an insurance analyst with the Consumer Federation of America, Washington, and Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, have asked why insurers are getting immediate relief when consumers are not being given immediate relief on issues such as credit scoring.

Similar questions came up at a recent insurance conference organized by the New York Society of Securities Analysts, New York.

Elizabeth Malone, a senior vice president with Wunderlich Securities Inc., Memphis, Tenn., who once worked for the NAIC, said that when regulators do things as a national group, they act to avoid “feeding the fire” for federal regulation. However, at the state level, she said, they have more leeway to give relief. “It is my understanding that in most cases, states are granting it.”

Connecticut Insurance Commissioner Thomas Sullivan explains the reasoning behind the use of the commissioner’s permitted practices authority in a memorandum issued Wednesday.

Sullivan writes about what he says is the unprecedented and ongoing global financial crisis, including the seizure of the credit markets.

Sullivan says companies must “fully substantiate” why an exception is needed and state what the impact of the request on the company, consumer and shareholder might be.

A financial benefit to determine dividends will not be entertained, Sullivan says.

Other states are starting to weigh in on how companies should be determining capital and surplus.

For instance, on Feb. 3, Iowa issued a bulletin that is similar to Connecticut’s announcement on how it will treat deferred tax assets.

Ohio issued a bulletin of its own Feb. 3 that says DTA relief is permitted if a company is within certain risk-based capital levels. Ohio also says variable annuity writers will be allowed to reserve for these products using Actuarial Guideline 39, and it says rules regarding the use of preferred class structure tables under Actuarial Guideline Triple-X will be temporarily relaxed.

Other states, including Illinois, Maine and New York, say that if a company is in trouble, states can address that on a case-by-case basis, and that no blanket capital and surplus relief will be provided.

Madoff whistle-blower calls for federal insurance regulation

2009-02-10T09:55:00.000-08:00

Madoff Watcher: Create Federal Insurance Regulator

* By ARTHUR D. POSTAL

Published 2/9/2009
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A Boston fraud investigator who raised questions about Bernard Madoff’s investment management operations early on says insurance should be federally regulated.

Harry Markopolos made his case earlier this week at a House Financial Services Committee Capital Markets Subcommittee hearing on the Madoff scandal,

Congress should create a “super financial organization with the departments underneath,” with the departments being agencies such as the U.S. Securities and Exchange Commission, “some bank regulator,” and “a national insurance regulator,” Markopolos said.

The departments should “have one super regulator above them, so that there’s no drop in coordination,” Markopolos said.

To maximize coordination, minimizing the number of subregulators under the super regulator is also important, Markopolos said.

“I want one centralized database of all enforcement actions, so that the banking regulators know what the capital markets regulators are doing, and also know what the insurance regulators are doing, because right now, you have these conglomerate firms that deal with all aspects of finance,” Markopolos said.

The conglomerates “have insurance,” Markopolos said. “They do banking. They do securities. And you need to combine the regulations database, so that people are aware of all the infractions…. You can't afford to be split into an army of ants. You need to be as giant as the conglomerates that you are regulating.”

A Boston fraud investigator who raised questions about Bernard Madoff’s investment management operations early on says insurance should be federally regulated.

Harry Markopolos made his case earlier this week at a House Financial Services Committee Capital Markets Subcommittee hearing on the Madoff scandal,

Congress should create a “super financial organization with the departments underneath,” with the departments being agencies such as the U.S. Securities and Exchange Commission, “some bank regulator,” and “a national insurance regulator,” Markopolos said.

The departments should “have one super regulator above them, so that there’s no drop in coordination,” Markopolos said.

To maximize coordination, minimizing the number of subregulators under the super regulator is also important, Markopolos said.

“I want one centralized database of all enforcement actions, so that the banking regulators know what the capital markets regulators are doing, and also know what the insurance regulators are doing, because right now, you have these conglomerate firms that deal with all aspects of finance,” Markopolos said.

The conglomerates “have insurance,” Markopolos said. “They do banking. They do securities. And you need to combine the regulations database, so that people are aware of all the infractions…. You can't afford to be split into an army of ants. You need to be as giant as the conglomerates that you are regulating.”

Insurers ask for easing of capital requirements

2009-02-10T09:50:00.000-08:00

Breaking News
Web Exclusives
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More States Weigh In On Capital Rules

* By ALLISON BELL

Published 2/9/2009
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Illinois and Ohio insurance regulators have posted Web notices discussing how they will respond to life insurers’ requests for changes in accounting rules.

Illinois says it will keep its rules the same.

The Illinois Department of Financial and Professional Regulation appreciates the efforts of the Capital and Surplus Relief Working Group at the National Association of Insurance Commissioners, Kansas City, Mo., to evaluate the 9-point capital and surplus rules change package proposed by the American Council of Life Insurers, Washington, Illinois Insurance Director Michael McRaith writes in Bulletin 2009-02.

“The division also recognizes the need to consider each company’s particular financial circumstances,” McRaith writes.

Illinois “will not broadly or by blanket application reduce accounting standards governing capital and surplus adequacy,” McRaith writes.

But individual companies can ask for individual variances from statutory accounting practices, McRaith writes.

“This consideration will be based on the specific applicant’s substantive explanation in support of the requested practice and the consumer impact of the variance, if approved,” McRaith writes.

A copy of the Illinois bulletin is available here.

Ohio says it will allow temporary changes in use of deferred income tax assets and reserve calculations for variable annuities with guaranteed living benefits.

Insurers cannot use the admitted DTA change in connection with any regulatory triggers, such as minimum capital surplus requirements, that involve admitted assets or statutory surplus, Ohio Insurance Superintendent Mary Jo Hudson writes in Bulletin 2009-04.

Insurers that shift to the new VA living benefit guarantee asset adequacy analysis approach must show that they have consider how policyholders might use VA contract options and how VA holders have behaved recently, Hudson writes in Bulletin 2009-03.

“Any financial benefit derived … may not be used in the determination of any dividends or other distributions available for shareholders,” Hudson writes.

Links to copies of the Ohio bulletins are available here.

Earlier, Iowa insurance regulators published a bulletin talking about how they will handle statutory accounting concerns in their state.

Pretty funny stuff from the SEC

2008-12-19T08:27:00.000-08:00

SEC Counsel Confident About Annuity Move

BY ARTHUR D. POSTAL
Washington Bureau -- NU Online News Service, Dec. 18, 2008, 3:59 p.m. EST

Brian Cartwright, the general counsel of the U.S. Securities and Exchange Commission, says he is “very confident” about the strength of the SEC’s position on its ability to regulate indexed annuities.

Cartwright expressed that view Wednesday in response to a suggestion by Commissioner Luis Aguilar that insurers might sue to overturn SEC efforts to participate in regulation of many indexed annuities.

Cartwright said he had heard some “saber rattling” from the industry regarding the rule.

But Cartwright said the SEC’s approach is consistent with a “couple of” Supreme Court cases.

Cartwright said, however, that the cases are “fairly old” and do not directly address indexed annuities.

In related news, more details about the SEC decision and more reactions to the decision are emerging.

SEC commissioners decided Wednesday to define the terms “annuity contract” and “optional annuity contract,” and to state that indexed annuities are not eligible for the exemption from securities regulation given to ordinary life insurance policies and fixed annuities.

SEC Chairman Christopher Cox said the SEC was acting because improving regulation of indexed annuities is a matter of great interest to senior investors.

Commissioner Kathleen Casey, who also voted for the change, said it will end a long period of uncertainty as to whether indexed annuities are insurance products or securities.

The current state regulatory approach provides insufficient protection for investors, Casey said.

Casey said the current market downturn has added urgency to the need for the rule because, she said, investors seeking to recoup losses will turn to “hybrid products,” such as indexed annuities.

The regulation approved Wednesday was a modified version of a draft released in June.

The SEC made 3 changes before adopting the regulation, according to lawyers at Jorden Burt L.L.P., Washington.

The SEC limited the application of the rule to indexed annuity contracts that specify that, “Amounts payable by the issuer under the contract are calculated at or after the end of one or more specified crediting periods, in whole or in part, by reference to the performance during the crediting period or periods of a security, including a group or index of securities.”

The language, “at or after the end of one or more specified crediting periods,” and “during the crediting period or periods of a security,” was added to address many commenters’ concerns that the proposed rule was overly broad and would apply to traditional fixed annuities and other annuities that are not indexed annuities, the Jorden Burt lawyers write.

The SEC also eliminated a proposed requirement that would have mandated that an issuer determine “not more than 3 years prior to the date on which a particular contract is issued whether the amounts payable under the contract are more likely than not to exceed the amounts guaranteed under the contract,” Jorden Burt lawyers write.

As adopted, the rule “will only require that such determination be made not more than 6 months prior to the date on which the form of contract is first offered,” the lawyers write.

In addition, the Jorden Burt lawyers write, the SEC adopted a modification to permit surrender and other charges to be reflected both in amounts payable and amounts guaranteed in determining whether the former are more likely than not to exceed the latter.

In response to a question from Casey, SEC Associate Director Susan Nash said the SEC would use the 2-year period before the definition change takes effect to consider how to handle disclosure and how to address the differences between Generally Accepted Accounting Principles and the statutory accounting rules that apply to insurers.

The SEC already has dealt with those considerations in connection with regulation of variable insurance products, Nash said.

The SEC also will look at financial statement presentation, advertising and marketing requirements, and filing fees, Nash said.

Iowa Insurance Commissioner Susan Voss, the vice president of the National Association of Insurance Commissioners, Kansas City, Mo., says she and her colleagues are disappointed by the SEC’s decision.

“We are very dismayed the SEC chose to ignore thousands of comment letters opposing this rule,” Voss says. “As insurance products, equity-indexed annuities are subject to extensive and ongoing regulatory initiatives taken by insurance regulators and numerous state insurance laws. The states have a demonstrated record of consumer protection, and we do not believe this rule is in the best interest of insurance consumers."

Along with the indexed annuities terminology proposal, the SEC adopted a proposal dealing with a rule exempting insurers from filing periodic reports under the Securities Exchange Act of 1934 on securities that are registered with SEC but regulated as insurance under state law.

That rule, 12h-7, was adopted with 2 changes.

The SEC revised the proposed requirement that an issuer take steps reasonably designed to ensure that a trading market for the securities does not develop to include an exception for steps prohibited by state law, Jorden Burt lawyers write.

The SEC also added a condition requiring that insurers claiming an Exchange Act filing rule exemption include a statement in the prospectus noting that the insurer is relying on the exemption.

As a result, the Jorden Burt lawyers write, an issuer can choose to remain subject to Exchange Act reporting requirements by omitting the statement.

An insurer that omitted the statement would be subject to mandatory Exchange Act reporting and to all the other requirements that apply to Exchange Act reporting companies, according to SEC Associate Director Susan Nash.

The American Council of Life Insurers, Washington, put out a statement praising the SEC’s adoption of the reporting measure.

The measure “simplifies periodic reporting requirements under the federal securities laws for insurance products in deference to the comprehensive state insurance regulations governing financial statements,” says Carl Wilkerson, chief counsel for securities and litigation at the ACLI.

Make an appointment today

2008-12-11T09:12:00.000-08:00

You can make an appointment and see me today, until 12 a.m.

An area regional cooperative (ARC)

2008-12-09T11:56:00.001-08:00

One thing we could do to stop foreclosures, is to dramatically reduce health care costs, effectively freeing up household cash. The State of Wisconsin created the ARC (Area Regional Cooperative) program a few years ago, and even provided some seed cash, but if it's benefits are available, they are not readily known. Creating an ARC for Green County farmers would reduce health costs for many area farmers. The difference between group and individual rates, not to mention benefits, can be substantial and amount to a difference of as much as fifty percent, or less, in premium payments.

Over the holidays..

2008-12-04T09:40:00.000-08:00

...I was talking with a friend who was told he could buy medical coverage for the period of his probation for only 1400 a month. Many Short term medical policies cost about that much, for a family of three, for six months total. If you're ready to cross your fingers and get through the probation, that's up to you. But insurance is about mitigating costs, reducing risks, if you can afford to buy it. Given the laws around pre-existing conditions, it pays to keep the gaps small, or to avoid them entirely. Long-term, it's cheaper, and involves a lot less risk. Not an easy admission for a one-time wanderer to make.

Right here, right now

2008-11-25T06:38:00.000-08:00

With the world economy seeming to teeter on the brink, it can be hard to think about what we can do right here, right now to make a difference, to start to turn things around, right here right now. My idea is that we find one family, or one person who is in danger of losing their house to foreclosure and see what it takes to set them back on the road to financial security. Stopping foreclosures is great but, how to do it without breaking the bank, and how to make it last, is more important. National leaders are wringing their hands for solutions, but we don't have to wait until January or wait until Congress acts. We can act now, using the power of community, with all our creativity, and with strict attention to the bottom line, so that when the government and business start to act, they have an efficient model to base their policies on, to stretch every dollar, and use every resource. We can't afford to waste time or money, and someone needs to blaze the trail. So, let's start right here in New Glarus. Happy Holidays.