Free health insurance coverage, believe it or not, is available in every state for children 18 years old and younger, including infants. For some this coverage may require some cost based on income, however many will be covered at no cost. Some states also offer such coverage for some pregnant women and adults from state and federal sponsored medical programs. Different states have different eligibility rules, but in most states, uninsured children whose families earn up to $34,100 (for a family of 4) are eligible.
With just a little research, free health insurance for doctor visits, prescription medications, hospitalizations and more can be found. Although readily available, such unique coverage is based on eligibility criteria, such as income and family size. Free quotes for medical coverage for these specific groups of children and certain adults can be obtained online, also. Answering a few questions regarding family income and size can instantly determine eligibility for free health insurance coverage.
Different states offer different programs for these eligible insureds, also. Some offer free health insurance for birth control for women and teenagers, some have programs for pregnant women, while others cover senior adults of 65 years of age and over. Each state, aside from different eligibility criteria, offers different programs for free health insurance including food programs to supply for nutritional requirements often not provided in low-income families. There are income guidelines that check to see if an applicant is eligible for that particular program.
With the cost of health care and medical insurance continually rising to extremes, finding free health insurance coverage is truly heaven sent. Without such protection, many might be left living in dangerous conditions. People should not have to choose between paying their bills and getting the needed medications that may save their lives. Although some depend on the free health coverage, others depend solely on the Lord for their health believing His words promise, "Is any sick among you? let him call for the elders of the church; and let them pray over him, anointing him with oil in the name of the Lord: and the prayer of faith shall save the sick, and the Lord shall raise him up...pray one for another, that ye may be healed. The effectual fervent prayer of a righteous man availeth much" (James 5:14-16). While some trust in faith healing, others may opt for the free health insurance coverage offered by the states and the government.
http://www.christianet.com/cheapinsurance/freehealthinsurance.htm
Tuesday, March 17, 2009
NetQuote
NetQuote provides comsumers with a fast, free, and easy way to shop for insurance. Auto, Home, Health, and Life.
Tuesday, March 10, 2009
Term or Whole Life?
FOR MOST PEOPLE, the right type of life insurance can be summed up in a single word: term. But before we explain why, it's important to understand the differences between the most common types of insurance available. Our glossary can help with that, and decipher some of the more common insurance lingo.
The basic difference between term and whole life insurance is this: A term policy is life coverage only. On the death of the insured it pays the face amount of the policy to the named beneficiary. You can buy term for periods of one year to 30 years. Whole life insurance, on the other hand, combines a term policy with an investment component. The investment could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against. The three most common types of whole life insurance are traditional whole life policies, universal and variable. With both whole life and term, you can lock in the same monthly payment over the life of the policy.
Forced Savings
Whole life insurance is expensive: You're paying not only for insurance but also for the investment portion. That extra cost might almost be worth it if these policies were a good investment vehicle. But usually they aren't. Insurance agents like to call these policies retirement plans, emphasizing the "forced savings" inherent in forking over the premiums each month "for retirement."
Leaving aside the fact that there are many better ways to save for retirement, these policies come with high fees and commissions, which sometimes lop off as much as three percentage points from the annual return. On top of that, there are up-front (but hidden) commissions that are typically 100% of your first year's premium. Worse, it's often impossible to tell what the return on the investment will be, and how much of what you pay in goes toward the insurance and how much toward the investment.
Premiums for term insurance are downright cheap for people in good health up to about age 50. After that age, premiums start to get progressively more expensive. The same holds true for whole life policies, though people who need coverage starting in their 60s and beyond may have no alternative but to buy whole life. Most companies simply won't sell term policies to people over about age 65.
Term: Where the Value Is
To get a real sense of the value of term, let's compare a term policy and a universal life policy. Say a 40-year-old nonsmoking male has a choice between a $250,000 Met Life universal policy with a $3,000 annual premium and a same amount of renewable term coverage with a 20-year fixed premium of $350. At the end of one year, the universal policy, assuming it paid 5.7% per year, tax-deferred, would have a cash value of exactly zero (cash value is the amount you would get back if you canceled the policy). But say he had instead invested $2,650 (the difference between $3,000 and $350) in a no-load mutual fund that averaged a total return of 10% annually. At the end of the first year, he'd have $2,841, accounting for taxes on the earnings at a 28% rate. At the end of 10 years, he would have accumulated more than $46,000 in after-tax savings in the mutual fund. Over the same period, the cash value of the policy would have climbed only to $31,819.
That's not to say that whole life insurance is always a bad idea. Wealthy people can use whole life in their estate planning by setting up an insurance trust that will pay their estate taxes from the proceeds of the policy. And for the growing number of people in their late 40s or early 50s who are just starting families, whole life is at least worth a look.
Sizing Up a Whole Life Policy
One of the great problems with whole life is only an expert can tell if a policy you own or are considering will ever become a decent investment. James Hunt, actuary for the Consumer Federation of America, who has analyzed thousands of policies, notes that whole life policies hardly ever yield a reasonable return unless held for 20 years or more. So if you buy one be prepared to pay into it for the very long haul.
The key to a whole life policy is its internal rate of return -- the yield on the policy after all fees and charges are subtracted. A competent analysis can determine at a minimum whether the weight of the fees and charges built into one of these policies will ever allow a worthwhile return. Such an analysis will also pinpoint the minimum amount of cash value that you can derive from a policy at any given time interval.
Some financial planners, actuaries and accountants can perform internal rate of return analysis on your policy. The Consumer Federation has a service that will do this, calculating the real return year by year and comparing it with other investments. The fee is $70 for the first policy, $50 for each additional. (Click here for details).
Keep Your Old Policy?
You've been faithfully paying into that whole life policy a good pal of your brother-in-law sold you 10 years ago. And now you're thinking, "Hey wait a minute, I should be bailing out and getting a cheap term policy." Not so fast. First and foremost, keep in mind the substantial sum you've probably paid in over the years. How much will you get if you "surrender" or cash it in now? The answer to that question can be found in the illustrations you got when you signed on the dotted line. If you can't determine the surrender value you may have to -- heaven forbid -- call your agent and ask. But it's worth taking the trouble before you make a decision.
Most policies don't start to build decent a cash value until their 12th or 15th year. So if you cash in after 10 years, you could be out of a lot of money. And you can be sure that if you surrender in the first five years or so, practically every dime you put in will be down the toilet. The next thing you have to consider is whether you are still insurable at a reasonable rate if you switch to term. That's because you'll have to requalify medically. If you are over 50, smoke or have health problems, you may find it's cheaper to hold onto your old policy. Another option worth considering is a tax-free transfer of the value in your old policy into a better one, perhaps from a low-commission company like Ameritas.
How to Check an Insurer's Ratings
If you're looking for whole life coverage or a term policy that you'll want to keep 20 or 30 years, the financial soundness of the insurer is a critical concern. You want some assurance the company will be around in case you aren't. For insurance companies, the major credit agencies like Standard & Poor's rate claims-paying ability.
Fortunately, information on the credit worthiness of insurance companies is easy to obtain. Reports are cheap or free over the Internet. You can always contact the insurance company and ask about its ratings, but it's best to get this information independently. In general, go with an insurer rated A or better; the most financially sound insurers are rated AAA, though some rating agencies use slightly different letter grades.
The premier Web site in terms of detail and ease of use, (best of all, it's free) is insure.com where you can get ratings online from Standard & Poor's as well comprehensive reports on individual insurers. AM Best has a huge database, but you have to pay for it. While you can access ratings free of charge, a detailed company report will set you back $75.
Make sure any report you get is current, say within the last six months. Be extra careful to confirm ratings you'll find on many of the online quote services, which may be stale.
http://www.smartmoney.com/personal-finance/insurance/term-or-whole-life-8011/
Monday, March 9, 2009
Free Life Insurance Available For Some Vermonters
BURLINGTON, Vt. -- Vermonters between the ages of 19 and 42 in good health might be eligible for free life insurance.
A program, created to help low-income Vermonters establish a safety net they normally wouldn't be able to afford, could provide some people with free life insurance if they qualify, NewsChannel 5's Mia Moran reported.
Getting blood drawn wasn't what Michael Mosley, of Essex Junction, had in mind for his Saturday morning, but the father of two young children is going through with it anyway, hoping it will be a load off his mind one day down the road.
"If anything was to happen to me, it would be terrible if I didn't have life insurance," Mosley said. "I don't know what they would do."
Mosley was one of more than a dozen people filling out paperwork and answering medical questions for the chance to receive free life insurance through a program called Lifebridge.
"It's a 10-year term, $50,000 worth of life insurance to any Vermonter," said John Olson, of Pastore Financial Group. "Anyone across the United States, frankly, has a household income of $10,000 to $40,000 per year."
Olson, who's helping people in Vermont apply for the insurance, said the money would go toward their child's education for those who qualify.
"People in this income category, after putting food on the table, are just not able to afford to put any kind of protection in place," Olson said.
To find out if you qualify, call 802-862-9622.
Fraud and Buildup Add 13 to 18 Percent in Excess Payments
MALVERN, Pa.— A new study by the Insurance Research Council (IRC) estimates that claim fraud and buildup added between $4.8 billion and $6.8 billion in excess payments to auto injury insurance claims closed with payment in 2007. The excess payments amount to between 13 percent and 18 percent of total payments under the five main private passenger auto injury coverages. Excess payments have increased from 2002, when they were estimated at between $4.3 billion and $5.8 billion, or between 11 and 15 percent of total payments.
The percentage of claims that appeared to involve fraud, defined as specific material misrepresentation of the facts of a loss, increased from 9 percent of bodily injury (BI) claims closed with payment in 2002 to 11 percent of closed claims in 2007. The percentage of personal injury protection (PIP) claims with apparent fraud rose slightly, from 5 percent in 2002 to 6 percent in 2007.
The more common type of claim abuse was buildup, defined as the inflation of an otherwise legitimate claim, such as through unnecessary medical treatments or diagnostic procedures. Twenty percent of BI claims appeared to involve buildup in 2007, up from 18 percent in 2002. Apparent buildup was found in 14 percent of PIP claims, up from 12 percent in 2002.
The study also examines differences in claiming behavior between claims with apparent fraud or buildup and claims without apparent fraud or buildup. Claims with apparent fraud or buildup were more likely than other claims to involve sprain and strain injuries and periods of disability. In addition, the study found that claimants in apparent fraud and buildup claims were more likely than other claimants to receive treatment from physical therapists, chiropractors, and other alternative medical providers.
"Claim abuse continues to be a significant problem. The excess payments attributable to fraud and buildup help drive up the costs of insurance for everyone," said Elizabeth Sprinkel, Senior Vice President of the IRC. "On the positive side, this report shows some of the ways that insurers are working to combat the problem and ensure that every claim is paid according to its merits."
The study, Fraud and Buildup in Auto Injury Insurance Claims: 2008 Edition, is based on data from more than 42,000 auto injury claims closed with payment under the five principal private passenger coverages. Twenty-two insurers, representing 58 percent of the private passenger auto insurance market in the Unites Sates in 2006, participated in the study. The IRC closed claim study collected detailed data on injury, medical treatment, claimed losses and total payments, claim handling techniques, and attorney involvement. In addition, claim file reviewers were asked to indicate whether specific elements of fraud or buildup appeared in the claims. Because the study involves only claims closed with payment, it likely understates the incidence of fraud and buildup in all claims filed.
For more detailed information on the study’s methodology and findings, contact David Corum by phone at (610) 644-2212, ext. 7506; or by e-mail at irc@cpcuiia.org. Or visit IRC’s Web site at www.ircweb.org. Copies of the study are available at $300 each in the U.S. ($315 elsewhere) postpaid from the IRC, 718 Providence Road, Malvern, Pa. 19355-0715. Phone: (610) 644-2212, ext. 7569; Fax: (610) 640-5388.
http://www.ircweb.org/News/IRC_Fraud_NR.pdf
Economic Downturn May Push Percentage of Uninsured Motorists to All-Time High
Economic Downturn May Push Percentage of Uninsured Motorists to All-Time High
MALVERN, Pa.—Approximately one in six drivers across the United States may be driving uninsured by 2010, according to a recent study from Insurance Research Council (IRC). Although the estimated percentage of uninsured motorists decreased nationally, from 14.9 percent in 2003 to 13.8 percent in 2007, the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate.
The recently released study, Uninsured Motorists, 2008 Edition, estimates the percentage of uninsured drivers countrywide and by state for the period 2005 to 2007. The IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers. The study contains recent statistics by state on uninsured motorists claim frequency, bodily injury liability claim frequency, and the ratio of uninsured motorists to bodily injury claim frequencies.
The magnitude of the uninsured motorists problem varied widely from state to state. In 2007, the five states with the highest uninsured driver estimates were New Mexico (29 percent), Mississippi (28 percent), Alabama (26 percent), Oklahoma (24 percent), and Florida (23 percent). The five states with the lowest uninsured driver estimates were Massachusetts (1 percent), Maine (4 percent), North Dakota (5 percent), New York (5 percent), and Vermont (6 percent).
The report also found a strong correlation between the percent of uninsured motorists and the unemployment rate: An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point. Based on current unemployment rate projections, the percentage of uninsured motorists is expected to rise from 13.8 in 2007 to 16.1 in 2010.
“An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments," said Elizabeth A. Sprinkel, senior vice president of the IRC. “Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers.”
The IRC study examined data collected from nine insurers, representing approximately 50 percent of the private passenger auto insurance market in the U.S. For more detailed information on the study’s methodology and findings, contact David Corum by phone at (610) 644-2212, ext. 7506; by fax at (610) 640-5388; or by e-mail at irc@cpcuiia.org; or visit the IRC’s Web site at www.ircweb.org. Copies of the study are available for $125 each in the U.S. ($140 elsewhere) postpaid from the Insurance Research Council, 718 Providence Rd., Malvern, Pa. 19355-3402. Phone: (610) 644-2212, 7574. Fax: (610) 640-5388.
http://www.ircweb.org/News/IRC_UM_012109.pdf
MALVERN, Pa.—Approximately one in six drivers across the United States may be driving uninsured by 2010, according to a recent study from Insurance Research Council (IRC). Although the estimated percentage of uninsured motorists decreased nationally, from 14.9 percent in 2003 to 13.8 percent in 2007, the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate.
The recently released study, Uninsured Motorists, 2008 Edition, estimates the percentage of uninsured drivers countrywide and by state for the period 2005 to 2007. The IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers. The study contains recent statistics by state on uninsured motorists claim frequency, bodily injury liability claim frequency, and the ratio of uninsured motorists to bodily injury claim frequencies.
The magnitude of the uninsured motorists problem varied widely from state to state. In 2007, the five states with the highest uninsured driver estimates were New Mexico (29 percent), Mississippi (28 percent), Alabama (26 percent), Oklahoma (24 percent), and Florida (23 percent). The five states with the lowest uninsured driver estimates were Massachusetts (1 percent), Maine (4 percent), North Dakota (5 percent), New York (5 percent), and Vermont (6 percent).
The report also found a strong correlation between the percent of uninsured motorists and the unemployment rate: An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point. Based on current unemployment rate projections, the percentage of uninsured motorists is expected to rise from 13.8 in 2007 to 16.1 in 2010.
“An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments," said Elizabeth A. Sprinkel, senior vice president of the IRC. “Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers.”
The IRC study examined data collected from nine insurers, representing approximately 50 percent of the private passenger auto insurance market in the U.S. For more detailed information on the study’s methodology and findings, contact David Corum by phone at (610) 644-2212, ext. 7506; by fax at (610) 640-5388; or by e-mail at irc@cpcuiia.org; or visit the IRC’s Web site at www.ircweb.org. Copies of the study are available for $125 each in the U.S. ($140 elsewhere) postpaid from the Insurance Research Council, 718 Providence Rd., Malvern, Pa. 19355-3402. Phone: (610) 644-2212, 7574. Fax: (610) 640-5388.
http://www.ircweb.org/News/IRC_UM_012109.pdf
The Insurance Research Council
The Insurance Research Council is a non-profit division of the American Institute for Chartered Property Casualty Underwriters and the Insurance Institute of America.
Supported by leading property-casualty insurance organizations, IRC provides timely and reliable empirical research to all parties involved in public policy issues affecting risk and insurance. It does not advocate public policy or directly influence specific legislative initiatives or engage in lobbying communications.
IRC addresses subjects relating to all lines of property-casualty insurance, including coverages of automobiles, homes, businesses, municipalities, and professionals. Its major studies each year provide facts pertaining to key industry challenges. Policy makers and opinion leaders can view its reports as objective guides to understanding complex issues.
Latest Release:
Uninsured Motorists, January 2009. Approximately one in six drivers across the United States may be driving uninsured by 2010, according to a recent study from Insurance Research Council (IRC). Although the estimated percentage of uninsured motorists decreased nationally, from 14.9 percent in 2003 to 13.8 percent in 2007, the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate. The recently released study, Uninsured Motorists, 2008 Edition, estimates the percentage of uninsured drivers countrywide and by state for the period 2005 to 2007. The IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers. The study contains recent statistics by state on uninsured motorists claim frequency, bodily injury liability claim frequency, and the ratio of uninsured motorists to bodily injury claim frequencies.
Recent Reports:
Fraud and Buildup Add 13 to 18 Percent in Excess Payments to Auto Injury Claims, November 2008. A new study by the Insurance Research Council (IRC) estimates that claim fraud and buildup added between $4.8 billion and $6.8 billion in excess payments to auto injury insurance claims closed with payment in 2007. The excess payments amount to between 13 percent and 18 percent of total payments under the five main private passenger auto injury coverages. Excess payments have increased from 2002, when they were estimated at between $4.3 billion and $5.8 billion, or between 11 and 15 percent of total payments. The percentage of claims that appeared to involve fraud, defined as specific material misrepresentation of the facts of a loss, increased from 9 percent of bodily injury (BI) claims closed with payment in 2002 to 11 percent of closed claims in 2007. The percentage of personal injury protection (PIP) claims with apparent fraud rose slightly, from 5 percent in 2002 to 6 percent in 2007.
IRC Study Documents Role of Chiropractors in Minnesota's No-Fault System, September 2008. Chiropractors now account for a greater share of total provider charges in Minnesota's no-fault insurance system than all other types of treating providers combined. According to a new study from the Insurance Research Council (IRC), 58 percent of all provider charges for treatment of no-fault insurance claimants in 2007 were from chiropractors. In a study conducted five years earlier, IRC found that 41 percent of all treatment charges were from chiropractors. The recently released study, Analysis of No-Fault Auto Insurance Claims in Minnesota, is based on a detailed review of more than 500 personal injury protection (PIP) insurance claims closed with payment in 2007. The claims were among the 42,038 claims examined in the IRC's countrywide report, Auto Injury Insurance Claims: Countrywide Patterns in Treatment, Cost, and Compensation. The growing cost of chiropractic treatment in Minnesota's auto insurance system is attributable primarily to rapid growth in average charges per visit to chiropractor offices. Between 2002 and 2007, average chiropractor charges in Minnesota increased 30 percent, from $122 to $158 per visit. In addition, the percentage of PIP claimants receiving chiropractor treatment increased approximately 5 percent. Minnesota had the third highest utilization rate for chiropractors (42 percent) among 17 states with no-fault insurance claims. Only Washington and Florida had higher chiropractor utilization rates in 2007.
IRC Research Documents Higher Injury Claim Costs With Lighter Weight Vehicles-Implications of Rising Gas Prices Considered, August 2008. The cost of auto injury claims involving lighter-weight vehicles tends to be higher than the cost of claims involving heavy vehicles, according to new research from the Insurance Research Council (IRC). These findings may have important implications for those seeking to understand how higher gas prices will affect auto insurance costs. IRC found that the average auto injury claim payment in accidents involving lighter-weight vehicles was 14.3 percent greater than the average payment in accidents involving heavy vehicles. These findings suggest that, as rapidly rising gas prices prompt more drivers to choose lighter and more fuel-efficient vehicles, the average cost of injury claims arising from motor vehicle accidents can be expected to climb.
Auto Injury Insurance Claims: Countrywide Patterns in Treatment, Cost, and Compensation, 2008 Edition, January 2008, 93 pages. This closed claim study updates the IRC’s ongoing research on injuries in auto accidents based on a sample of more than 42,000 auto injury claims paid by major auto insurers countrywide. The report explores auto injury claim patterns under each of the five principal private passenger coverages, comparing 2007 data to results from similar studies conducted in 2002 and earlier. The study examines trends in injury claim patterns, including characteristics of the accidents and those injured, medical treatment, losses and payments, the claim settlement process, and the impact of attorney involvement. Cost: $300 in the U.S. and $315 elsewhere, postpaid.
Colorado Auto Insurance—Transition From No-Fault to Tort, February 2008, 32 pages. Colorado auto insurance regulations changed from a no-fault system to a tort-based system in 2003. This IRC report examines auto claim frequencies and loss costs in Colorado before and after the transition from no-fault to tort. Additional analyses compare closed auto injury claim details between Colorado and the United States. Cost: $65 in the U.S. and $80 elsewhere, postpaid.
Trends in Auto Injury Claims, 2008 Edition, January 2008, 91 pages. This report examines the frequency, severity, and loss costs associated with auto insurance claims under the PD, BI, and PIP coverages from 1990 to 2006. National and state statistics are provided. Also included is information on total auto injury loss costs and average written liability premiums from 1990 to 2004. Cost: $300 in the U.S. and $315 elsewhere, postpaid.
Alternative Medical Treatment in Auto Injury Insurance Claims, September 2007, 51 pages. This IRC report investigates the utilization and cost of alternative medical treatment in BI and PIP auto insurance claims. The report also documents the wide variation in the utilization of alternative treatment in different states. Cost $125 in the U.S. and $140 elsewhere, postpaid.
Public Attitude Monitor 2007, Issue 1, June 2007, 49 pages. The first issue of the Insurance Research Council’s Public Attitude Monitor 2007 (PAM) analyzes public opinion on a range of issues related to highway safety and traffic enforcement. Cost: $65 in the U.S. and $80 elsewhere, postpaid.
Municipal Bond Holdings of Property-Casualty Insurance Companies, May 2007, 60 pages. This IRC report describes the property-casualty insurance industry’s role as the fourth largest investor in municipal bond markets and presents findings on the types of projects funded through municipal bonds purchased by insurers. Cost: $125 in the U.S. and $140 elsewhere, postpaid.
Florida Auto Injury Insurance Claim Environment, 2007 Final Report, February 2007, 68 pages. This IRC study highlights trends in auto injury claim patterns in Florida by comparing PIP and BI closed claims from 2005 with claim data collected in 2002 and 1997. Cost: $125 in the U.S. and $140 elsewhere, postpaid.
http://www.ircweb.org/
Supported by leading property-casualty insurance organizations, IRC provides timely and reliable empirical research to all parties involved in public policy issues affecting risk and insurance. It does not advocate public policy or directly influence specific legislative initiatives or engage in lobbying communications.
IRC addresses subjects relating to all lines of property-casualty insurance, including coverages of automobiles, homes, businesses, municipalities, and professionals. Its major studies each year provide facts pertaining to key industry challenges. Policy makers and opinion leaders can view its reports as objective guides to understanding complex issues.
Latest Release:
Uninsured Motorists, January 2009. Approximately one in six drivers across the United States may be driving uninsured by 2010, according to a recent study from Insurance Research Council (IRC). Although the estimated percentage of uninsured motorists decreased nationally, from 14.9 percent in 2003 to 13.8 percent in 2007, the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate. The recently released study, Uninsured Motorists, 2008 Edition, estimates the percentage of uninsured drivers countrywide and by state for the period 2005 to 2007. The IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers. The study contains recent statistics by state on uninsured motorists claim frequency, bodily injury liability claim frequency, and the ratio of uninsured motorists to bodily injury claim frequencies.
Recent Reports:
Fraud and Buildup Add 13 to 18 Percent in Excess Payments to Auto Injury Claims, November 2008. A new study by the Insurance Research Council (IRC) estimates that claim fraud and buildup added between $4.8 billion and $6.8 billion in excess payments to auto injury insurance claims closed with payment in 2007. The excess payments amount to between 13 percent and 18 percent of total payments under the five main private passenger auto injury coverages. Excess payments have increased from 2002, when they were estimated at between $4.3 billion and $5.8 billion, or between 11 and 15 percent of total payments. The percentage of claims that appeared to involve fraud, defined as specific material misrepresentation of the facts of a loss, increased from 9 percent of bodily injury (BI) claims closed with payment in 2002 to 11 percent of closed claims in 2007. The percentage of personal injury protection (PIP) claims with apparent fraud rose slightly, from 5 percent in 2002 to 6 percent in 2007.
IRC Study Documents Role of Chiropractors in Minnesota's No-Fault System, September 2008. Chiropractors now account for a greater share of total provider charges in Minnesota's no-fault insurance system than all other types of treating providers combined. According to a new study from the Insurance Research Council (IRC), 58 percent of all provider charges for treatment of no-fault insurance claimants in 2007 were from chiropractors. In a study conducted five years earlier, IRC found that 41 percent of all treatment charges were from chiropractors. The recently released study, Analysis of No-Fault Auto Insurance Claims in Minnesota, is based on a detailed review of more than 500 personal injury protection (PIP) insurance claims closed with payment in 2007. The claims were among the 42,038 claims examined in the IRC's countrywide report, Auto Injury Insurance Claims: Countrywide Patterns in Treatment, Cost, and Compensation. The growing cost of chiropractic treatment in Minnesota's auto insurance system is attributable primarily to rapid growth in average charges per visit to chiropractor offices. Between 2002 and 2007, average chiropractor charges in Minnesota increased 30 percent, from $122 to $158 per visit. In addition, the percentage of PIP claimants receiving chiropractor treatment increased approximately 5 percent. Minnesota had the third highest utilization rate for chiropractors (42 percent) among 17 states with no-fault insurance claims. Only Washington and Florida had higher chiropractor utilization rates in 2007.
IRC Research Documents Higher Injury Claim Costs With Lighter Weight Vehicles-Implications of Rising Gas Prices Considered, August 2008. The cost of auto injury claims involving lighter-weight vehicles tends to be higher than the cost of claims involving heavy vehicles, according to new research from the Insurance Research Council (IRC). These findings may have important implications for those seeking to understand how higher gas prices will affect auto insurance costs. IRC found that the average auto injury claim payment in accidents involving lighter-weight vehicles was 14.3 percent greater than the average payment in accidents involving heavy vehicles. These findings suggest that, as rapidly rising gas prices prompt more drivers to choose lighter and more fuel-efficient vehicles, the average cost of injury claims arising from motor vehicle accidents can be expected to climb.
Auto Injury Insurance Claims: Countrywide Patterns in Treatment, Cost, and Compensation, 2008 Edition, January 2008, 93 pages. This closed claim study updates the IRC’s ongoing research on injuries in auto accidents based on a sample of more than 42,000 auto injury claims paid by major auto insurers countrywide. The report explores auto injury claim patterns under each of the five principal private passenger coverages, comparing 2007 data to results from similar studies conducted in 2002 and earlier. The study examines trends in injury claim patterns, including characteristics of the accidents and those injured, medical treatment, losses and payments, the claim settlement process, and the impact of attorney involvement. Cost: $300 in the U.S. and $315 elsewhere, postpaid.
Colorado Auto Insurance—Transition From No-Fault to Tort, February 2008, 32 pages. Colorado auto insurance regulations changed from a no-fault system to a tort-based system in 2003. This IRC report examines auto claim frequencies and loss costs in Colorado before and after the transition from no-fault to tort. Additional analyses compare closed auto injury claim details between Colorado and the United States. Cost: $65 in the U.S. and $80 elsewhere, postpaid.
Trends in Auto Injury Claims, 2008 Edition, January 2008, 91 pages. This report examines the frequency, severity, and loss costs associated with auto insurance claims under the PD, BI, and PIP coverages from 1990 to 2006. National and state statistics are provided. Also included is information on total auto injury loss costs and average written liability premiums from 1990 to 2004. Cost: $300 in the U.S. and $315 elsewhere, postpaid.
Alternative Medical Treatment in Auto Injury Insurance Claims, September 2007, 51 pages. This IRC report investigates the utilization and cost of alternative medical treatment in BI and PIP auto insurance claims. The report also documents the wide variation in the utilization of alternative treatment in different states. Cost $125 in the U.S. and $140 elsewhere, postpaid.
Public Attitude Monitor 2007, Issue 1, June 2007, 49 pages. The first issue of the Insurance Research Council’s Public Attitude Monitor 2007 (PAM) analyzes public opinion on a range of issues related to highway safety and traffic enforcement. Cost: $65 in the U.S. and $80 elsewhere, postpaid.
Municipal Bond Holdings of Property-Casualty Insurance Companies, May 2007, 60 pages. This IRC report describes the property-casualty insurance industry’s role as the fourth largest investor in municipal bond markets and presents findings on the types of projects funded through municipal bonds purchased by insurers. Cost: $125 in the U.S. and $140 elsewhere, postpaid.
Florida Auto Injury Insurance Claim Environment, 2007 Final Report, February 2007, 68 pages. This IRC study highlights trends in auto injury claim patterns in Florida by comparing PIP and BI closed claims from 2005 with claim data collected in 2002 and 1997. Cost: $125 in the U.S. and $140 elsewhere, postpaid.
http://www.ircweb.org/
Friday, March 6, 2009
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