How Does Term Life Insurance Work?

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How Does Term Life Insurance Work? You are a responsible adult. You get up every morning (or night) and head off to work to build your legacy or provide for your family. You invest your money wisely, and always pay bills on time. You have also tried to put money away for your children's future education. Because after all, nothing is more important to you than your

Insurers largely unprepared for climate change

A report issued today found only 9 percent of insurers are well prepared to face the risks posed by a changing climate. Only two of those insurers are headquartered in the United States.  

Ceres today released its 2014 climate preparedness scorecard, which ranks the nation's 330 largest insurance companies on what they are saying and doing to respond to escalating climate risks. The report is based on a 2013 survey of insurers with an excess of $100 million in direct written premiums conducted by insurance regulators in Washington, California, Connecticut, Minnesota and New York.

 

More results:

• 276 of the 330 companies that responded scored in in the bottom half.
• The top nine best-prepared companies are: ACE, Munich Re, Swiss Re, Allianz, Prudential, XL Group, The Hartford, Sompo Japan and Zurich. Only The Hartford and Prudential are headquartered in the United States.
• Overall, property and casualty (P&C) insurers are better prepared than life and health insurers, which are largely unprepared.

Washington Insurance Commissioner Mike Kreidler and the other insurance regulators care about this issue for a couple of reasons – first, climate change brings extreme weather events, which can cause widespread damage to homes and other property, as we saw during this summer's wildfires. More frequent and more severe natural disasters mean more claims, which means insurance companies need to make sure they have enough money to pay those claims. Insurers can help maintain their financial solvency by making sure their money is invested soundly and in climate-friendly ways. Secondly, insurance companies can reduce their risk by being proactive. Kreidler has called for insurers to get involved in building codes, land use practices and working with developers to help mitigate the effects of climate change.

“The insurance industry is uniquely positioned as the bearer of risk to make adjustments now to lessen dramatic impacts we know are coming. This is not a partisan issue, it’s a financial solvency issue and a consumer protection issue,” Kreidler said in the Ceres news release.

Take a look at our media roundup about the report findings.

Consumer alert: Trade marketers banned from selling health care products

The federal government this week banned a trade association from selling health care-related products to consumers. The OIC issued a cease-and-desist order against the same group in 2012 for selling discount health plans in Washington without a license.

The Federal Trade Commission banned the Independent Association of Businesses (IAB) from selling any products that could be construed as health insurance or health care products to consumers. The group marketed its products as health insurance but consumers who purchased it were in fact enrolled in an IAB membership that included discounts on many services, including travel protection, identity theft protection and certain medical visits that were subject to broad exclusions and limitations.

IAB indicated to our investigators that it had sold 190 memberships to 161 Washington consumers as of September 2010 and it was still doing business at the time of our order in February 2012, even though it knew it wasn’t legal to do so. Consumers should be wary if they see marketing from IAB or any of its affiliated business names: International Association of Benefits, International Marketing Agency, Independent Association of Businesses, or IAB. You can report any activity from this marketer to the FTC’s online complaint center. If you have questions about health insurance, call our consumer experts at 1-800-562-6900 or visit us online.

Change your Medicare enrollment now through Dec. 7

Medicare’s open enrollment period for prescription drug plans (Part D) and Medicare Advantage plans starts today and runs through Dec. 7. Our Statewide Health Insurance Benefits Advisors (SHIBA) provide help in your community.

SHIBA offers free help to people with Medicare questions, including what changes are happening this year.

“Our unbiased volunteers in your community can answer your questions and help you search for plans online,” said Insurance Commissioner Mike Kreidler.

Before you make your Medicare decision, consider the following:

• Plan costs and coverage will likely change every year, so carefully review all letters and notices from your insurer.
• Make a list of all current prescription drugs you take, the doses, and how often. Then, use the Medicare Plan Finder to compare prescription drug (Part D) plans.
• Review the 2015 Medicare & You handbook. You should receive it in the mail by mid-October.
• If you have limited income and need help paying for prescription drugs, check out Medicare’s “Extra Help” program. To see if you qualify, contact the Social Security Administration at 800-772-1213 or visit www.socialsecurity.gov. 

Call our Insurance Consumer Hotline at 800-562-6900 to ask for help or to schedule an appointment with a SHIBA volunteer in your area. You can also find a free Medicare workshop in your area on our online calendar and sign up to receive Medicare consumer news from us by email or text.

We are back in business!

All of our web-based applications are available again and we are able to respond to emails now. Thank you for your patience!