what is insurance

Some years ago, we blogged on a rather interesting (and illegal) sideline in which a Pine Tree State insurance agent was engaged: " 57-year-old Mark Strong Sr., pleaded not guilty to 59 counts of promotion of prostitution and violation of privacy ." Mr Strong being, of course, the proprietor of the "Strong (Insurance) Agency" of Thomaston, Maine. We wondered at the time about whether or not his Errors and Omissions policy would provide much cover. Fast forward a half-dozen years or so, and co-blogger Bob V tips us to this life-imitates-the-news story out of Portsmouth, Ohio: " Regulators are trying to remove the license of an insurance salesman allegedly involved in a sex trafficking ring ... saying he committed insurance fraud on at least two separate instances ." Wait, is he in Dutch because of the sex thing, or the fraud thing? Well, seems to be both, plus the odd HIPAA violation (one wonders how he missed out on the jaywalking). Turns out, he's a...

Recently, a friend of mine attended a post-retirement financial planning seminar, at which was touted a way to use one's life insurance as a "living benefit" (no, not that kind of living benefit ). The idea goes something like this (all numbers in this example are for illustrative purposes only): One buys a single pay Whole Life (WL) insurance plan, depositing $100,000, which purchases s $200,000 death benefit. One then waits a few years for the surrender period to end, and then "withdraws" [ ed: we'll circle back to this ] $75,000, leaving $25,000 of the original premium in the plan. This reduces the death benefit to $125,000. When one's time comes to exit this mortal coil, one's beneficiary still gets $125,000 ($200,000 - $75,000). Nice return: $125,000 benefit check for $25,000 net deposit (5:1). My friend wanted to understand why a carrier would agree to this, and I agreed to look into it, as a result of which I have some concerns. Here...

You may have seen the news that the Centennial State has become the first in the union to impose price controls on insulin: " The state is capping co-payments for diabetics with private insurance at $100 per month " The Tiffany Network also says that the average diabetic currently spends upwards of $500 a  month on insulin (although they offer no insight as to how they arrived at this figure, other than it was reported to them by the Health Care Cost Institute). They also don't say how much the average diabetic actually pays for the med (this is an important, and generally unremarked upon, distinction). [ ed: the Institute itself is apparently funded by 4 major carriers. FWIW ] While one's first reaction is likely applause, it should actually give one pause. As a longtime correspondent in Colorado notes in email: " Recently our governor in Colorado signed a bill restricting copays on insulin to $100 monthly. Comments about this universally demagogue President ...

As I'm sure most have heard, our little corner of paradise was slammed with multiple tornadoes last night. Miraculously, there don't appear to have been any fatalities, but there is significant property damage (as one would expect). We've been asked to pass along the following urgent suggestion from out primary carrier: " Tell insured's not to sign any contracts with door to door contractors.  If you need to get in contact with [your adjuster] you can call her on her cell phone ." This is likely good advice no matter who your insurance is with....

Courtesy FoIB Dr Rob:

Life expectancy is a very poor measure of the healthcare system. Other factors have much more influence. https://t.co/jsRXWQ6EfO � Gayle Brekke (@blahblahKC) May 24, 2019 Yup. But: #NarrativeUberAlles

Courtesy FoB Holly R: " Some fans attending Sunday's Indianapolis 500 can get measles vaccines at the track's infield medical center ." This comes as the CDC has issued a warning about the increasing incidence of the once-eradicated disease: " From January 1 to April 26, 2019, 704 individual cases of measles have been confirmed in 22 states including Indiana. This is an increase of 78 cases from the previous week ." At least one fan's not worried though. Local Indy aficionado Mike Dean's theory is " I think if you drink enough beer, it kind of inhibits the measles virus, so that�s been my defense ." Heh.

We've mentioned before how Gleaner Life gives back to its community of policyholders and their families: " These "Give and Grow Grants" put real dollars directly into the hands of folks who want to help "to improve their communities through volunteer service projects ." Well, they've just announced this year's recipients, all 100 of them (Wow!), will split almost a quarter of a million dollars to help with college (and/or other post-secondary) education expenses. The competition is available to Gleaner life clients and their families, and: Applicants are scored individually in six basic areas: 1. Academic record 2. Leadership 3. Quality of activities and community involvement 4. Letters of recommendation 5. Explanation of financial need 6. Overall quality and completion of the application Sweet!

Shot: Desperate #NHS tries to poach 100,000 nurses from abroad amid staffing crisis via @DailyMirror https://t.co/fgEaZ078UF pic.twitter.com/UCeLeQILOG � Sally Pipes (@sallypipes) May 11, 2019 Chaser: Do you know what Canadian single payer covers and doesn�t cover? By BFF lives in Ontario. They don�t cover mental health care, medications, vision, or dental. There are waiting lists for Drs, specialists, and surgeries/treatments that can be deadly. https://t.co/xF2Ctu9pDE � Heather (@hboulware) May 14, 2019

A while back, our Jack Russell-mix puppy had knee surgery , and the doc prescribed 4 (yes, four - I told you she's a J ack Russell-mix) meds for her. Buying them from the vet got expensive pretty quickly, and they recommended the folks at GoodRx . This is a site (and an app) where you can procure coupons for various meds, often saving significant dollars. This helped a lot with Maddie's meds, and we've since used it for our own. It's easy and efficient, and even better, it's free. Well, seems like the basic idea is really taking off: " Discount medical shopping site launches in Kansas City ... has gone live with the test version of sesamecare.com ." We've seen this model before, of course: " Must See TV featured an interview with Dr. Keith Smith where he outlined the unique practice at the Surgery Center of Oklahoma.The hospital operates on a cash only basis ." The Sesamecare site takes the reduced-fee, cash only model and expands it to in...

Courtesy of FoIB Scott Olson: " 55% of those surveyed say they need #longtermcare insurance. But only 15% own it ." It gets even better: [click to embiggen]

Via co-blogger Bob : " [Georgia] "Insurance Commissioner Beck suspends himself from office ... will continue to receive his $120,000 salary ." Nice gig, if you can get it.

So the great state of Washington has passed legislation implementing what appears to be the first " Social-Insurance Program for Long-Term Care " in the nation. Cool. But what, exactly, does that mean ? Well first, let's look at what this plan isn't : It is not an individually owned, Partnership Compliant long term care insurance plan (it's not, in fact, ' long term care ' coverage at all, but we'll circle back to that). That's not to say it's evil, fattening or carcinogenic, just noting its limitations. On the other hand, it's also not the late, un lamented CLASS Act , so it actually seems to have some decent value, especially relative to cost. Okay, that's nice, Henry, but what is it? Pretty simple, really: " All residents will pay 58 cents on every $100 of income into the state�s trust. After state residents have paid into the fund for ten years�three if they experience a catastrophic disabling event�they�ll be able to tap $1...

Canada is the best example not to follow. They tell the drug makers what they will pay for a drug under the threat of creating their own clone then dumping it on the world market for pennies of the originals cost. No one gets new R&D in that "business" model. It's pure theft. � David Fredsall (@yellowlight4570) May 14, 2019 A portent of MedicaidForAll. #CanuckCareWinning

Just saw this report on the latest 007 outing: " The difficult road to production on the latest James Bond film has hit another hurdle after shooting was reportedly suspended following an injury to star Daniel Craig ." The actor apparently suffered an unspecified leg-related injury during a stunt. So what's that got to do with insurance? Well: "... the actor ... has been flown to the U.S. for X-rays ." [ emphasis added ] So apparently Her Majesty's Secret Service has no use for her Much Vaunted National Health Service�. Hunh.

So as one might imagine, this has become something of a hot topic of late. I knew we should blog on it (for all the obvious reasons), and since it's in the P&C world, I wanted to be sure that I had a firm grasp on as many of the issues as possible. To that end, I turned to my colleague Teresa S, and we had a nice (long) chat trying to identify those issues (as best we could). Beyond the obvious (wrongful death and medical and funeral expenses), there's counseling, biohazard cleanup, and destruction of property; in some cases, relocation and rebuilding expenses might also come into play. There's also business interruption and even Public Relations, and let's not forget off-site coverage (if the business or organization needs to rent temporary facilities). T his is not, of course, an exhaustive list. Who and what, exactly, are being insured is also important: the institution/organization, of course, but also boards of directors, Elders, etc. And who's eligible f...

So got a call the other day from a couple looking for health insurance. Well, Karen was; Carl is on Medicare. Karen's 63, and a cancer survivor (Yay!!). Their current, grandfathered Anthem plan sports a $5,000 deductible, and runs about $540 a month, and that's become something of a budget burden for them. They reached out to me to see if they could get something cheaper. After determining that they' r e not eligible for a Special Open Enrollment , I explained that there's not a lot that we can do for them. Yes, there are cheaper alternatives, but they're either underwritten, or exclude pre-existing conditions (or both), or offer much more limited benefits than their current plan. Out of curiosity, I looked at the 404Care.gov site, and saw that the least expensive offering there featured a $7,900 deductible (almost 60% higher than their current plan), and cost almost $640 (about 20% higher than their current plan). They would almost certainly qualify for a subsidy,...

All links courtesy of FoIB Holly R: � Scientists in Israel have discovered what appears to be a very promising treatment for epilepsy, and it comes from an unexpected source: " Researchers at Tel Aviv University have discovered that a drug used to treat multiple sclerosis may help epilepsy patients. " Yasher koach ! � On the other hand, Israel's universal health insurance system (a hybrid of public and private) isn't faring so well: " Israel�s health expenditure is way below its OECD peers�. This leaves Startup Nation lacking beds, doctors, nurses, MRIs and CT scanners " The country has begin a major effort on tech solutions to the problem but, well: "... if you are in need of hospital care in Israel, you may end up, like 94-year-old Mr. Dabah or Fiasl�s mother, parked for days in a ward corridor, or waiting for hours in an emergency room ." Oy. � As we've noted before, the major benefit to Direct Primary Care (DPC) is that it " g...

So I recently had a life case go south in a weird way: Did my usual pre-screen, which includes height, weight, any meds, any tobacco use, and the like; based on his answers (including no tobacco use), gentleman seemed to qualify for a preferred non-smoker rate. And so we submitted the application and arranged for the paramed exam. All very cut-and-dry. Until I got back the approval .... at Preferred Smoker class. Hunh? So I thought " oh, he vapes or maybe had a cigar the day before ." But when I called, he said no, had quit smoking years ago, but when he gets anxious he sometimes pops some nicotine gum. Hunh. So I called the underwriter, who said, based on the lab result, my guy's " po pping that gum" a lot ; enough, in fact, to kick him into tobacco use territory . But Henry, you object, he's not using tobacco , he's just chewing some nicotine-laced gum. Um: " Nicotiana tabacum, the type of nicotine found in tobacco plants ." Oh. Thing is, ...

I'm with Bernie : [click to embiggen] [Hat Tip: FoIB Sam B]

I've noted before that the death claim process marks the final part of the promise I made to my client when I sold him (or, of course, her) a life insurance policy: " There is really nothing remarkable about this process; after all, everything went as it should ... And yet, there is everything remarkable about it: over the years, George paid in several thousand dollars in premiums, a mere fraction of what his widow will receive ... And in a week or so, I will be the only person in his widow's life who will be giving her money ." This wa s the culmination of the process, wherein I got to keep my promise to George. It is at once the worst part of my job (losing a client) and the best (bringing a check). Yesterday, I learned of the recent death of another client: Bob had some medical issues, and was far from a spring chicken, but he was a patient, kind and friendly gent, with a ready smile and a quick wit. When we met back in '15, he said that he wanted to take ca...

As in, That's Not How This Works. Shot: " Irina Vorotinov has been charged by ... with defrauding Mutual of Omaha Insurance Company of more than $2 million in life insurance proceeds by falsely claiming that her former husband had died ."" Chaser: " A Minnesota man has pleaded guilty to faking his own death eight years ago in Eastern Europe to collect a $2million life insurance policy ." Justice served.

May is Disability Insurance Awareness Month, and as usual we'll be featuring posts about this important coverage throughout it. Here, for instance, is an online calculator, courtesy of MassMutual, to help folks try to get a handle on how much coverage they really need: Online DI Calculator

� As we see the effort to implement Medicaid For All (M4A) continue ramping up, it may be instructive to see how well the concept works in the real world. Case in point: Singapore. As Ari Armstrong explains: " Singapore has a mixed system, with both public and private components. But �the government holds the cards� ... the government strictly regulates what technology is available in the country and where ." It's the ultimate exemplar of " who pays the piper calls the tune ." #BeCarefulWhatYouWishFor � Meanwhile, Sally Pipes reports on Our Neighbors To the North, specifically the folks n Nova Scotia: " A mother in Nova Scotia living with cancer is challenging Premier Stephen McNeil to meet with her after a years-long battle with the province's health-care system ." *This* is the face of government-run health "care:" � Finally, some good news on the health/culinary front, courtesy of FoIB Holly R: " When restaurants across Americ...

One more satisfied ACA victim customer: Another happy ACA exchange patron: Woman eligible for premium tax marries during year. Filing status on 12/31 is status for whole year. Spouse income wipes out credit. $4,452 due. #TaxCourt https://t.co/K2i8qeDDUt � Joe Kristan (@joebwan) May 1, 2019

From our friends at Cincinnati Insurance:

Shot *: May is Motorcycle Awareness Month! Motorcyclists are about 27 times more likely than passenger vehicle occupants to die in a motor vehicle crash, and 5 times more likely to be injured. #SharetheRoad pic.twitter.com/iLJJion2Xm � DRIVE SMART Virginia (@DRIVESMARTVA) May 1, 2019 Chaser : " May is Disability Insurance Awareness Month " Just sayin'. *Hat Tip: Erie Insurance

Gotta love this headline in today�s readings: Doctors: Don�t blame me for high healthcare costs . � Lots of factors are at play when it comes to high healthcare costs. But doctors are sure of one thing: They aren�t to blame. Physicians instead point to pharmaceutical and  insurance  companies as the source of high costs, according to a new  survey  from the University of Utah Health .� This seems counter-intuitive: of course Doctor�s are to blame because that is who the patient pays for medical care. Yes you, the patient, pay the Doctor for your portion of the appointment, but the Insurance Company determines what is the patient�s portion. There has been much discussion lately about making the cost of health care transparent. Most of that discussion revolves around the physician appointment and the physician charges but very little revolves around the part Insurance Companies play in determining the cost of healthcare. To understand how vital a role Insurance Compan...