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…)

In many ways, auto insurance reflects the risk factors of aging as clearly as any kind of insurance. Regardless of age, auto insurance remains controversial because it’s influenced by behavioral and demographic realities that some people would rather avoid. (more…)

The McCarran-Ferguson Act was adopted in 1945 after extended controversy over the jurisdiction of state and federal governments in regulating the business of insurance. The principal objective of the Act was to establish the primacy of the states in regulating the industry. The purpose clause of the Act states that the continued regulation and taxation of the business of insurance by states are in the public’s best interest. (more…)

Homeowners insurance is designed not only to protect your home and your belongings against loss, but to protect you from liability for injuries to others, and liability for damage to the value of property of others. You may buying homeowners insurance years ago when you first purchased your home and continued to renew it every year without thinking about it. Now is the time to think about it again, before a loss occurs that you can’t afford. (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…)

As we age our priorities seem to change very much. One of the priorities that never seem to lose its importance is our health. Mainly because of age, health is more important to live a long and having a healthy life, thus health insurance for elderly is always in great demand. With so many different insurance option to choose for cheap health insurance, can we decide what health insurance plan is best for us? (more…)

Some workers that are fall into certain categories are not covered by workers compensation if some work-related accidents happen. If he has injured at work, these workers are not getting any benefit from workers compensation system, but any other means of looking for compensation may be usable.

Bellow you will find some of workers in certain job/work categories that are not covered: (more…)

The new risk adjustment system was designed to meet ten guiding principles. These principles relate to insurance underwriting issues, understanding and acceptance by users, and minimization of opportunities to “game the system.” Briefly, the ten principles are:

1. The health-status–related measures should be clinically meaningful. This means that they should have face validity and be (more…)

Many people become eligible for Medicaid by spending down to it. In other words, many people use up their own assets to pay health care bills until they have so little left that they qualify for Medicaid. Becoming eligible for Medicaid is quite tricky and cannot be done simply by giving things away to family members. Medicaid planning is a big business. (more…)