 My bike was just stolen on Monday....? |
Five months old, totaly tricked out, and she is gone. Im so upset... Fortunately, Im covered for theft...
However, I didnt keep receipts for all the parts Ive put on her, although I did ... |
|
 How do I find a good life insurance agent? |
| I am expecting my first child by the end of the year. I want to purchase life insurance, but I would like to go through an independent agent/broker as they work with multiple companies and can get ... |
|
 Ryan Air have debited my account 2X for one insurance policy.? |
I emailed them. They TOLD me WITHOUT ANY SYMPATHY to speak to their insurance company. I did and they told me to speak to, yes you guessed it, RYAN AIR.
So I emailed R.Air again and they didn... |
|
 Can I get insurance on dwelling only? |
| Does anyone know of an insurerer that doesn't require a "package" (ie: contents)?... |
|
 Forging a doctors note. switching insurance, wondering if i can make one up and fool my boss? |
| I have a lot of sick time and soon i will be uninsured because i'm going to switch with a new insurance co. so for 6 month i wont be able to go to the dotors. and right now i have a lot of sick ... |
|
 I had a fire in my flat at the beginning of the year and the loss adjusters want to investigate it now. Why? |
| Someone needs to put my mind at rest. January this year I had a fire causing quite a lot of damage. I’d had the storage heaters serviced by an electrician. However, as they had not been turned ... |
|
 Will i still have to pay this insurance bill? |
| I just got a bill for car insurance and it sky rocketed. My Insurance agent says that it's because of other people wrecking and stuff like that. I'm thinking about not paying and just ... |
|
 Insurance another word for scam? |
My understanding of the purpose of insurance is to help out in the event of unexpected expenses to prevent financial disaster..
If this were true why are laws in place that protect the ... |
|
 Question on dividends and whole life insurance. |
| How do dividends work with whole life insurance. From my understanding, you can use your dividends to pay your premiums and after a while your dividends cover your premium costs all together. Does ... |
|
 What's the easiest to sell in insurance? |
I was told that life insurance was a bit harder to sell than others? Is this true or just an opinion? What license do you have to have to sell auto insurance?
Additional Details
No one ... |
|
 Does home insurance cover termite damage? |
| Hi, I found a couple of termites in my house and can I just let them destroy the house so that I could claim the insurance or is that not allowed?... |
|
 Does insurance pay for flights home after surgery? |
| My dad is getting back surgery and he is getting it in Chicago and we live in Detroit...Will insurance pay for a flight home for my dad?... |
|
 Who will cover lap-band surgery? |
| Just wanted to know if anyone knows of any insurance companies that will cover lap-band surgery.... |
|
 I have a sticky situation on my hands and need some insurance and need some advice...? |
Kinda a long story so bare with me...
About a month ago I had a couple of friends over (we were all about 19) and we were drinking. I went to bed and my so-called-friend was completely ... |
|
 What does this denial from an insurance company mean? |
I am currently looking for an insurance plan that will cover me - I have OCD and recently received a denial that stated
"Legislation in your state does not allow us to place long-term ... |
|
|  |
Janice C | Do insurance premiums rise due to payouts, investments by the insurance company or what? |
I just had someone tell me, as if fact, that insurance premiums don't rise due to payouts but rather due to underlying investments. I heartily disagree, as I live in Florida and had my home owners insurance double. |
 |
 
mbrcatz
 |
Well, after 9/11 there was a sharp spike in premiums, across the board, due to payouts. HOWEVER, most of the time you see hard market/soft market trends, it's more of a response to the underlying investments.
Florida is a major exception to the rule. Companies are losing money hand and foot in Florida, and they aren't writing business.
A few years ago, politicians wanted to "get in good graces" with the voters, so they started Citizens INsurance, and way, way underpriced homeowners coverages. Needless to say, tons of people moved from their other companies to Citizens, which is a state funded and operated company. Meanwhile, claims experience meant that the existing companies decided to not write any new policies in Florida. At the same time, there was a hurricane a couple years ago, and Citizens took 9 - 12 months to pay claims, BECAUSE THEY DON'T HAVE ANY RESERVERS, because they underpriced the policies, for political purposes.
OK, so fast forward to today. Citizens insures $400B of properties. They have about 10% of that in reserves (money available to pay claims), and another 10% in credit lines. If they were a REAL company, they'd be declared insolvent in ANY state. So, in order to "fix" it, they've doubled their rates, and will be doubling again, as legislation was recently passed to "make them increase rates to stay solvent". Until the rates get to the point where they have enough reasonable reserves to pay claims (maybe 5X what they have right now), rates are just going to keep going higher and higher.
So Florida is a special case. There's a lot of political reasons, in addition to it being the MOST high risk hurricane area in the US. God forbid there should be a major hurricane this season, and you have your insurance with Citizens. I would NOT want to be in that position. |
|
Insurance
 |
Insurance companies manage their risk in different portfolio for different type of coverage.
Previous claim experience will increase your renewal premium.
But if in Florida there are many home owners making claims from the same insurer they will also considering increase the premium accordingly.
from
loihl@einsuran.com
Malaysia Home Insurance |
|
cope_acetic
|
I've never claimed anything on my homeowners, and it has never gone up...so I don't know about that.
But as far as AUTO insurance goes, it went up each time one of my kids got a license and even MORE when they had accidents.
So I have to believe that claiming and/or becoming a claim RISK is what drives the increase. |
|
steve s
|
Insurance is, except where legislatively exempted, a regulated industry. As such, the fundamental question raised with each financial report filed with a regulatory agency is: If the company was hit with an 'average' number of claims, can the company pay the claims and stay in business?
Insurance, at its most basic, is a pooling of risk. Everyone pays a little bit in, with the hopes that enough money is there to pay the few people a lot when they need it. (Yes, i know that doubling a premium seems huge, when compared to the old premium. But it's still much less than the value of the property being insured!)
Good investment performance is money that can be offset against what needs to be collected to pay anticipated claims. Bad investment performance could, in some cases, actually cause premium increases to, again, build the reserve to pay anticipated claims. This is much better than NOT having the money when the claim must be paid.
The best situation is to buy the insurance and not need it. Everybody wins because there's enough money for everyone. But when someone needs it, and they've paid for it, the money better be there for them.
New Orleans demonstrated the challenges of paying claims when it's difficult to substantiate that the claim is valid. Weak regulatory enforcement and a high dependency on LOCAL record keeping would automatically make it more difficult to validate a claim. How do we know you are the policy holder? How do we know that we insured your property? How do we know that your policy was in force (i.e. premiums were up to date) when the cause of claim occurred? A 'no' answer to any of those questions would result in a refusal or delay of payment. People were upset and complaining, but some people lied and cheated and received money they weren't entitled to. As a result, other people, who deserved the money legitimately, were penalized or denied. It wasn't pretty. Systems under stress break down. But, when the system works, it works reasonably well and sometimes even better. |
|
avaldreteiv
 |
Insurance is the act of transfering risk from the individule to the company. So the company is at risk of replacing the value of the insured: ie. home, auto, life, income. So the insurance premium or the amount paid by the individule who is transfering the risk should be a calculation based on what the risk is the company will have to pay a claim. For example, if the person buying the insurance has a record of driving recklessly and has numerous speeding tickets and fender-benders the insurance company would assign a higher risk than that of someone who has a history of good driving, thereby making the "bad" driver pay more for the insurance.
If you are looking at life insurance, and a Variable Universal Life insurance contract, there can be some truth to what this individule told you. Because there are investments that are tied to the policy, so if the investments don't do well, then there may need to be additional premiums paid in order to keep the policy enforced. This should only take place in this type of insurance policy as no other type of insurance that I am aware of has an investment account tied to the policy. |
|
Nate W
|
The answer is both.
In your case, claims are the issue. Florida is in bad shape right now for homeowner's insurance. When USAA announced that they were pulling out of Florida, they justified it saying that Florida residents contribute 5% to their national premiums but are responsible for 25% of claims. It's just not financially smart to insure anyone in florida.
The financial strength of an insurance company certainly does play a role in how they base their premiums. However, it is much more "sticky" and less likely to effect your premiums during renewals. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
5 | 28 minutes(s) ago
| | | |
6 | 2 hour(s) ago
| | | |
5 | 3 hour(s) ago
| | | |
6 | 6 hour(s) ago
| | | |
6 | 8 hour(s) ago
| | | |
6 | 9 hour(s) ago
| | | |
6 | 2 day(s) ago
| | | |
6 | 6 day(s) ago
| | | |
6 | 1 week(s) ago
| | | |
6 | 1 month(s) ago
| |
|
Homepage 
Financial
Forum 
Insurance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
