NH Policy Holders Remain Silent Over Rate Revisions

Saturday’s Post 12.10.11 – New Hampshire officials have reported no complaints regarding the rate increase affecting State Farm policy holders. The rates were raised by 0.2 percent on average in August. An official of the State Insurance Department said that they have only received one query related to the increase; the misunderstanding was between a quoted rate and the actual premium rate. Further; it was reported that no official complaints had been made after the rates were revised. State Farm’s regional spokesman said that the increase did not affect all types of coverage. Some premiums were set to go up while others had been revised drop after renewal. Auto Insurance Medical coverage would increase for some customers and drop for others. Generally,car insurance collision and most comprehensive coverage were set to go down. The rates would not be apply to all policy holders, rates would vary depending on the type of coverage discounts, make of car, mileage and the driver.

The New Hampshire rate revision was followed by rate cuts in other cities such as Alabama, Georgia and Pennsylvania. State Farm reported a decrease in the amount of claims in all these states and this was what triggered the rate reduction. The firm saw it wise to pass on the savings to the policy holders by announcing a rate reduction. State Farm made an official statement announcing that Pennsylvanians should expect a cut of a little less than  1 1/2 percent. The change is to start the Monday after christmas. The total will save customers nearly $17,000,000.00.  State Farm also slashed rates in Alabama by 2 percent. These changes took effect in November and policy holders were expected to save above $10 million annually. Georgia was also a beneficiary of the rate cuts, State farm reduced the premiums by a little over 2 percent. This will have a huge impact on the consumers as it  could save them $23 million yearly.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Georgia Latest State To Be Provided An Obama Care Waiver

Monday’s Post 12/5/12 –  For those who are unaware, Medical Loss Ratio (MLR) is a new federal requirement where Health Insurance Carriers are mandated to allot certain minimum funds on patient care and quality. It is a provision of Obama Care or as it’s legally known as the Federal Affordable Care Act which directs insurers to spend at least eighty (80%) of the premiums related to care-related costs, for individual and small-group insurances. The goal of this decree is to dissuade excessive profits or heavy disbursements on big salaries. U.S. Officials have granted a waiver to insurers in Georgia—making it the 8th state in the US to receive this exemption. States have the prerogative to apply for a waiver provided they are worried that insurers may react to this provision through leaving the market. The Department of Insurance in Georgia has requested that the provision would be implied gradually starting at sixty-five percent (65%) this year. U.S. Officials have compromised, setting the this year’s minimum to seventy percent (70%). The state of Maine has received a full waiver from Federal Officials. On the other hand, North Dakota, and Delaware have been denied exemptions, while New Hampshire, Nevada, Kentucky and Iowa have received phase-in rules similar to that of Georgia. The reason these states are receiving exceptions is the same reason every state will seek an exemption – Profit.  You can’t run an ongoing enterprise without profit or talented people to run in.  This is why the Obama Care Model is doomed to fail. I founded InsureDirect 20 years ago.  If I was limited on the amount of profit we could earn selling auto insurance; the enterprise would have failed less than 6 months after the company was founded.  This is why its likely you will see Obama Car either de-funded or even outlawed if the House, Senate and Presidency is won by the republicans in 2012.

-Mike 

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

InsureDirect.com offices Shake From Earthquake

On Tuesday August 30, 2011,  a strong earthquake rattled the East Coast of the US starting in the State of Virginia. The earthquake was so strong that it could be felt as far as Pennsylvania and inside the corporate offices of InsureDirect.com in Lansdale, PA which is 35 miles northeast of Philadelphia and all the way to Canada. The earthquake has shaken buildings, delayed flights and trains, and sent confounded workers inside buildings into the streets. Despite its severity, the 5.9 magnitude earthquake had not  injured or taken anyone’s life. Despite this, the Pentagon and the US Capitol, in Washington DC, were briefly evacuated. The states effected were Virginia, Maryland, Delaware, New Jersey, Pennsylvania, New York, Connecticut, New Hampshire, Vermont and Maine.

Spokesman; Larry Beach said that the quake could still be felt 83 miles from the epicenter. Larry works at the US Agency for International Development in Washington. 5.5 to 6-magnitude earthquakes have the ability to shake, and bring forth damage to the building; especially when the quake is shallower. Amtrak, in line with the destruction caused by the earthquake, commenced a reduced speed policy between Washington and Baltimore. In addition, track crews are busy checking rails for damage. Two nuclear reactors in Virginia were shut off for safety’s sake; traffic lights, too, have been shut down for a short time after the tremors gradually ended. A spokesman says that three pinnacles from the center tower of the Washington National Cathedral have broken due to the quake.

Due to the intensity of the earthquake, some people living in high-rise building experienced sea sickness during the earthquake due to the shaking motion of the building. The earthquake grounded all flights in John F. Kennedy International Airport and Newark Liberty Airport for a brief period of time due to the evacuation of Tower Controllers. “I thought I was dizzy and I needed to drink more water,” said the manager of Sportello, Heather Kennaway. He was at first unaware that it was an earthquake which sent him off his feet. Vacationers at Hamptons, one of the highest-rating islands, also felt the tremors. Many grabbed their cell phones to contact loved ones while other began inquiring whether a tsunami was on its way or not.

If you have Homeowners insurance, you should understand your coverage may not cover earthquake damage.  Under normal circumstances you will need to purchase an additional coverage or seperate rider to provide coverage for such perils.  If you have homeowners insurance through another company or broker and you have not been contacted lately to review your coverage – give us a call.  The agents at InsureDirect.com will be happy to review your current Home or Auto Insurance Policy and see if we can save you some money and even increase your coverage.

– Mike

 

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