Coverage

Medicaid coverage is broader than Medicare. However, obtaining care can sometimes be more difficult. Medicaid covers prescriptions, nursing home care, home health care, doctor visits, and hospitalization. Some state plans also cover dental care, eye care, hospice care, and therapy. Contact your local agency on aging for information about your state plan. (more…)

Having an insurance is not always synonymous with that for any incident, the insurance company pays for all the damages. There are a number of occurrence specified in the insurance contract where companies can refuse to cover a claim. (more…)

Medicaid eligibility requirement is determined by looking at a person’s income and assets. When considering eligibility, certain personal assets are considered exempt and are therefore not included in the calculation of a person’s income. Such exempt assets include a person’s: home, wedding rings, burial plot, car, personal and household belongings (up to about $2000), and life insurance policies with a total cash value under $5000. (more…)

Coinsurance is an arrangement which permits the Insured to receive a reduction in rate in return for purchasing insurance of not less than a given percentage, most commonly 80 or 90 percent of the value of the insured property. Coinsurance has the effect of distributing the cost of insurance fairly among all policy-holders, by requiring each to carry amounts of insurance proportionate to the value at risk. (more…)

Actual Cash Value (also known as Sound Insurable Value) is the cost of replacing, restoring or reproducing the property, brand new, less depreciation due to use and obsolescence.

Your house and property are protected Actual Cash Value (ACV) covered if they do not covered by the replacement cost coverage on your insurance policy. (more…)

The objective of life insurance is to provide compensation to the beneficiaries or legal heirs in case of death of the insured. For this reason, there are fundamentals that must be taken into consideration before making a purchase of life insurance. (more…)

Profitability in the insurance industry is determined by combining both underwriting results and investment results. Despite incurring substantial underwriting losses over the 10-year period 1976 through 1985, the property/casualty insurance industry has more than offset those aggregate losses with investment gains. The underwriting losses resulted, in part, from the industry’s cash flow underwriting pricing strategy in which companies sacrificed underwriting gains in an attempt to attract more business and thereby enhance investment gains. We estimate that the industry had about $81 billion in after-tax income over this period. Because of the cyclical character of the industry’s underwriting experience, we believe that data covering longer periods, rather than concentrating on the last few years, provide better perspective on the industry’s profitability. (more…)

Replacement Value is the cost of replacing, reproducing or restoring the property, brand now, without deduction of depreciation. In other words, a school district insuring on the basis of Replacement Value is paid for the full value of the damaged property, brand now, at the time of loss. However, to collect the full replacement value, the Insured must actually repair or replace the property. Otherwise, the settlement will on an Actual Cash Value basis. (more…)

As noted earlier, one set of our profitability estimates assumed that the industry-established reserves were sufficient to settle future claims. We made this assumption because companies review their reserve estimates at least annually and are bound by state regulators to provide for fully adequate reserves. Future events, however, may show that the reserves are either excessive or inadequate. (more…)

Medicaid is a joint federal-state program providing medical care services to low-income individuals. Medicaid eligibility requirements is established through the categorically needy and medically needy programs, or as a result of membership in a few special groups recognized by federal law. Categorical eligibility includes families covered by the state welfare program, pregnant women and children under age 6 with family income up to 133 percent (more…)