Black Voices Insurance http://insurance.blackvoices.com Black Voices Insurance http://insurance.blackvoices.com/media/feedlogo.gif Black Voices Insurance http://insurance.blackvoices.com en-us Copyright 2010 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/The Effects of the Earthquake in Chile on Insurance Companieshttp://insurance.blackvoices.com/2010/03/12/earthquake-chile-insurance-companies/http://insurance.blackvoices.com/2010/03/12/earthquake-chile-insurance-companies/http://insurance.blackvoices.com/2010/03/12/earthquake-chile-insurance-companies/#commentsFiled under:



By Jazelle Reed, Special AOL Black Voices Contributor

A devastating earthquake struck the Chilean nation on Saturday, February 27th. The quake had an 8.8-magnitude, which left 500 people dead, 2 million people injured or displaced and caused severe destruction. Even worse, an aftershock hit Chile the following day. In Concepción, cars were mangled, streets littered with telephone wires and power cables, and buildings were completely destroyed. A biochemical lab even caught fire at the University of Concepción. There was also a giant wave that flooded the main square in Talcahuano, which is a nearby port. It is clear that this will cost the nation a great deal of money, insurance companies in particular.

One insurance firm estimated this catastrophic event to have cost insurance companies somewhere between 2.92 billion Euros ($4 billion) and 5.15 billion Euros ($7 billion). In fact, on Wednesday the Swiss Reinsurance Co. said it expects to receive claims totaling in the ballpark of 365 million Euros ($500 million). The firm also stated that the purchase of earthquake insurance is a common practice in the Andean nation, which is seismically active, and that even policyholders whose property was unharmed could file claims for interruption of business activity. Another firm, Flagstone Reinsurance Holdings Limited, recently announced that its preliminary estimate of claims in relation to its exposure to the earthquake in Chile is $50 million net of reinstatement premiums and retrocession.

Preliminary cost estimates of repairing or replacing public hospitals and infrastructure total more than $5 billion according to Chilean officials. The nation's President, Michelle Bachelet, called the quake "one of the worst tragedies in the last 50 years" and declared a "state of catastrophe, " while speaking at a news conference the night of the quake. Although this earthquake was much stronger than the one that hit Haiti six weeks ago, the damage and death toll in Chile are likely to be far less extensive, partly due to strict building codes established after devastating earthquakes in the nation's past. However, insurance companies will still have to shell out billions of dollars to help rehabilitate the nation of Chile.

 

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]]>chile earthquakeChileEarthquakeinsuranceJazelle ReedJazelleReedAlexis Stodghill2010-03-12T14:22:00 00:00Celebrity Insurance: Would You Insure DMX?http://insurance.blackvoices.com/2010/03/11/dmx-jail-arrest-court/http://insurance.blackvoices.com/2010/03/11/dmx-jail-arrest-court/http://insurance.blackvoices.com/2010/03/11/dmx-jail-arrest-court/#commentsFiled under:



<PREVIOUS: D'Angelo
Poor DMX. He has been in and out of court for many years over different charges, and is allegedly battling a drug problem. Recently DMX was arrested again for violating his probation by using drugs. He showed so much promise as a leading rapper of the late '90s through early 2000s era, and according to the Entertainment Newswire was "the first artist to have five consecutive number one albums on the Billboard Top 200 charts." During his heyday, DMX was acting, touring and engaging in a number of professional acts that would require some type of insurance. DMX is in a bad place now, and we need to keep him in our prayers. If DMX were able to put himself back together like Whitney, would you be willing to insure one of his first business ventures? Consider this idea carefully from a business perspective, but also from the angle of compassion. If DMX wanted to make a comeback, would you give him insurance?

<PREVIOUS: D'Angelo

 

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]]>celebrity insuranceCelebrityInsuranceDMXAlexis Stodghill2010-03-11T16:57:00 00:00Celebrity Insurance: Would You Insure D'Angelo?http://insurance.blackvoices.com/2010/03/09/dangelo/http://insurance.blackvoices.com/2010/03/09/dangelo/http://insurance.blackvoices.com/2010/03/09/dangelo/#commentsFiled under:



<PREVIOUS: Whitney Houston
D'Angelo, once a beloved neo-soul artist, has been in the news for soliciting sexual acts from a police officer. This is sad news, because D'Angelo was once revered as much for his sex appeal as he was for his musical talent. It is our deepest hope that D'Angelo return one day to the top of the R&B charts, touring for the fans that still love him. But his troubles could run deeper than feeling the need to buy intimacy. As recently as 2005, D'Angelo was convicted of cocaine possession, and "[t]hat same year, he got his license suspended for 18 months on charges of marijuana possession and drunk driving" (Cbsnews.com). But they say there is no such thing as bad publicity. It is possible that this downturn will put D'Angelo back into the public eye. In a "Robert Downey, Jr."-esque turn of events, he could get his act together, and take his act on the road. If D'Angelo did go back to recording and touring, would you deny him health, life, tour and/or car insurance based on his record? Or would you give this talented musician -- who has given us so much joy -- another chance?

<PREVIOUS: Whitney Houston

 

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]]>arrestDAngelosolicitationAlexis Stodghill2010-03-09T14:39:00 00:00Celebrity Insurance: Would You Insure Whitney Houston?http://insurance.blackvoices.com/2010/03/03/whitney-houston/http://insurance.blackvoices.com/2010/03/03/whitney-houston/http://insurance.blackvoices.com/2010/03/03/whitney-houston/#commentsFiled under:



<PREVIOUS: Lindsay Lohan

Whitney Houston is back in the news these days with her tour of Asia. While the reception of her shows has not been great, it's wonderful to see her back out there making money and reconnecting with fans. She has experienced a hard path back to the spotlight, with her heavy drug use possibly affecting her voice -- the staple of her career. As a superstar diva, she would require tour insurance and might consider a celebrity body part insurance policy for her prime vocal asset. Given Whitney's troubled history, would you grant her insurance? Consider this carefully, and leave your comments below.

<PREVIOUS: Lindsay Lohan

 

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]]>Whitney HoustonWhitneyHoustonAlexis Stodghill2010-03-03T13:37:00 00:00Celebrity Insurance: Would You Insure Lindsay Lohan?http://insurance.blackvoices.com/2010/03/02/lindsay-lohan/http://insurance.blackvoices.com/2010/03/02/lindsay-lohan/http://insurance.blackvoices.com/2010/03/02/lindsay-lohan/#commentsFiled under:



<PREVIOUS: Tiger Woods

Lindsay Lohan is a young woman with a lot of drama under her belt for her age. She has already been convicted of DUI, has been involved in high-profile car crashes, and recently admitted to cocaine use. In the past she has had difficultly getting covered by film producers because of her wild child ways. We hope that she is able to overcome her issues, settle down a little and learn to take care of herself. But until then, as long as Lindsay Lohan is in show business, she is going to need insurance for a number of things. If her file came accross your desk, would you "green light" an insurance policy for her next venture? Would you give Lindsay Lohan car insurance?

<PREVIOUS: Tiger Woods

 

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]]>Lindsay LohanLindsayLohanAlexis Stodghill2010-03-02T12:51:00 00:00Celebrity Insurance: Would You Insure Tiger Woods?http://insurance.blackvoices.com/2010/03/02/tiger-woods-apology/http://insurance.blackvoices.com/2010/03/02/tiger-woods-apology/http://insurance.blackvoices.com/2010/03/02/tiger-woods-apology/#commentsFiled under:



<Lil Wayne: PREVIOUS

Tiger Woods gave a great apology to his wife, family and fans recently. His scandal rocked the golfing community, and made for some of the most salacious headlines of all time. Tiger Woods' affairs cost him many endorsements and the trust of his sponsors. A superstar like Tiger needs many types of insurance in order to function at his level: everything from car insurance to life insurance, travel insurance and more. But we all now know that Tiger Woods has often engaged in a lot of high-risk behaviors, from reckless driving to allegedly sleeping with multiple women which could endanger his health. Given what we know of Tiger now, would you grant him car or life insurance?

<Lil Wayne: PREVIOUS

 

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]]>tiger woods affairTiger Woods apologytiger woods scandalTigerWoodsTigerWoodsAffairTigerWoodsApologyTigerWoodsScandalAlexis Stodghill2010-03-02T12:36:00 00:00Celebrity Insurance: Would You Insure Lil Wayne?http://insurance.blackvoices.com/2010/03/02/lil-wayne-going-to-jail/http://insurance.blackvoices.com/2010/03/02/lil-wayne-going-to-jail/http://insurance.blackvoices.com/2010/03/02/lil-wayne-going-to-jail/#commentsFiled under:



<PREVIOUS: D'Angelo

After doing a cameo during Jay-Z's recent concert, Lil Wayne has finally turned himself in to serve one year in prison for gun possession. We wish him all the best, and pray that he makes it through what is sure to be a harrowing ordeal. When Lil Wayne gets out of prison, we hope he returns to his normal life of creating and touring as soon as possible. But like all performers, Lil Wayne will be required to have insurance in order to tour. As a major star witch a checkered past that includes being arrested multiple times for drug possession, given his current situation, would you grant Lil Wayne insurance for his tour?

<PREVIOUS: D'Angelo


 

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]]>insurance underwriterInsurance UnderwritingInsuranceUnderwriterInsuranceUnderwritingLil Waynelil wayne going to jaillil wayne pleads guiltylil wayne prisonLilWayneLilWayneGoingToJailLilWaynePleadsGuiltyLilWaynePrisonAlexis Stodghill2010-03-02T12:29:00 00:00Report Reveals Eight Health Care Lobbyists for Every Member of Congresshttp://insurance.blackvoices.com/2010/02/26/health-care-reform-eight-health-care-lobbyists-member-congress/http://insurance.blackvoices.com/2010/02/26/health-care-reform-eight-health-care-lobbyists-member-congress/http://insurance.blackvoices.com/2010/02/26/health-care-reform-eight-health-care-lobbyists-member-congress/#commentsFiled under:

On the heels of President Obama's summit on health care reform, The Center for Public Integrity has revealed that lobbying efforts to influence health care reform are so intense, that lobbyists on the issue outnumber lawmakers by almost ten to one. Joe Eaton and M.B. Pell report:

A Center for Public Integrity analysis of Senate lobbying disclosure forms shows that more than 1,750 companies and organizations hired about 4,525 lobbyists - eight for each member of Congress - to influence health reform bills in 2009.

The list of companies and organizations that worked to put their imprint on legislation is diverse, ranging from health care interests and advocacy groups to giant corporations, small businesses, American Indian tribes, religious groups, and universities.

Among industries, 207 hospitals lined up to lobby, followed by 105 insurance companies and 85 manufacturing companies. Trade, advocacy, and professional organizations trumped them all with 745 registered groups that lobbied on health reform bills, illustrating the common Washington strategy of special interests banding together to pool money and increase their influence.


This is interesting, because the average American probably has no idea of the extent to which the outcome of the president's health care reform efforts are subjected to incredible interference. Almost every sector of society is looking to sway the bill to benefit each group's particular interests. The process of lawmaking is difficult enough, but with each lawmaker potentially being hounded by eight lobbyist on only one issue, it will be a miracle if a health care reform bill can be crafted that does what it really needs to do -- get the over 40 million Americans who are uninsured health care coverage.

Let's applaud the efforts of honest lawmakers who are trying to push an optimal health care bill through, and hope that the system is not corrupted by this tangle of selfishness . It's probably unavoidable at this point to prevent it from being bogged down.

Via The Huffington Post

 

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]]>health care billhealth care debatehealth care reformhealth care reform billHealth Care spendingHealthCareBillHealthCareDebateHealthCareReformHealthCareReformBillHealthCareSpendingAlexis Stodghill2010-02-26T12:03:00 00:00Would You Consider 'Drop-out Insurance' to Protect an Investment in Education?http://insurance.blackvoices.com/2010/02/24/drop-out-insurance/http://insurance.blackvoices.com/2010/02/24/drop-out-insurance/http://insurance.blackvoices.com/2010/02/24/drop-out-insurance/#commentsFiled under:

In these trying economic times, more and more students are seeking drop-out insurance to protect themselves in case they have to leave college unexpectedly. Rising tuition costs have made drop-out insurance suddenly seem logical when it used to be a protection most families rarely considered. Drop-out insurance allows a policy holder to get back all or most of the money that has been invested should a tragedy occur that forces a student out of school for medical reasons. With the cost of tuition making higher education a luxury, most families can no longer afford to write off a semester's hefty bill should an unforeseen health crisis arise.

USA Today reports:
People complain about car insurance, worry about health insurance and debate the need for life insurance, but there isn't much talk about tuition insurance.

That might be because it's perceived as a sunk cost; because colleges often refund some percentage of tuition until the midpoint of the semester; or because it's so rare for people in their late teens or early 20s to contract debilitating illnesses. Or maybe because policies usually don't refund tuition for students who drop out to "find" themselves or who get kicked out for drinking or bad grades. But the idea of paying a bit extra to ensure that a student and his family get the bulk of what they've paid for a semester has never quite caught on.


That is until now. The precious value of every dollar has been highly emphasized by the recession, and insurance companies are responding by offering more drop-out insurance policy options to meet the rising demand for protection. Until recently, A.W.G. Dewar was the most-widely represented company offering drop-out insurance plans -- but they only offered drop-out insurance through 180 schools. More companies are stepping in to fill the huge remaining void, such as Educational Insurance Plans. Educational Insurance Plans president, David Galvin, explains that his firm jumped on this opportunity, "because there wasn't anything else out there for parents or students at colleges that aren't part of Dewar's program... Some parents see risk. You know, a college education is expensive and they want to feel protected in case the student has to withdraw." (USA Today)

The recession is certainly transforming all areas of business, making certain avenues of money-making obsolete, while creating new opportunities in others. Drop-out insurance is a growing area for insurance companies, as the money invested in a college education becomes more precious as banks are giving out fewer education loans. While it seems highly-unlikely that you will need it, for a few hundred dollars a year, drop-out insurance is well worth it when you compare it to the thousands of dollars one could otherwise lose should an unfortunate crisis occur.

Would you consider drop-out insurance?

 

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]]>Drop-out InsuranceDrop-outInsuranceAlexis Stodghill2010-02-24T16:28:00 00:00The Latest Health Care Reform & Insurance News: Coming Summithttp://insurance.blackvoices.com/2010/02/18/health-care-reform-insurance-news/http://insurance.blackvoices.com/2010/02/18/health-care-reform-insurance-news/http://insurance.blackvoices.com/2010/02/18/health-care-reform-insurance-news/#commentsFiled under: ,


o.White House insists healthcare summit no trap
The purpose of the Obama administration's upcoming summit on healthcare is to find solutions to issues like soaring insurance premiums, not score political points against the Republicans, the White House insisted. [Reuters]

o.Changing the Healthcare Paradigm: A Physician And Patient Centered Approach
Next week, we will be witness to the President's healthcare forum. This is what we know so far. [BigGovernment.com]

o.Targeting Insurance Abuses as a Path to Federal Health Reform
The insurance industry and their conservative allies in Congress have used every tactic available to shift public debate away from the core reason insurance reform was needed in the first place: the denial of coverage to those with preexisting coverage, and the out-sized profits and administrative waste by insurance companies that has priced health care out of the reach of millions of Americans. [ProgressiveStates.org]


o.Co-Pay Rising: Is your health insurance plan useless? Five signs that it might be
When does having health insurance offer you no greater protection against financial ruin than having none at all? This isn't a riddle or some joke with a witty punch line. This is a serious question that all health care consumers need to ponder. [Sdgln.com]

o.Clear diagnosis, uncertain remedy
Governments are increasingly turning to private insurance in order to widen access to health care and make it more efficient. Are they expecting too much? [The Economist]

 

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]]>insuranceAlexis Stodghill2010-02-18T15:16:00 00:00Woman Willing to Marry For Health Insurance: Would You?http://insurance.blackvoices.com/2010/02/17/woman-willing-to-marry-for-health-insurance/http://insurance.blackvoices.com/2010/02/17/woman-willing-to-marry-for-health-insurance/http://insurance.blackvoices.com/2010/02/17/woman-willing-to-marry-for-health-insurance/#commentsFiled under: ,

Would you be willing to marry for health insurance? A woman with a rare pre-existing condition is taking to YouTube to find a man with that asset alone just to get her medical needs met. Terri Carlsonis is in a tough place financially, and marrying for health insurance is her only way out of a serious money and medical jam. Singularityhub.com reports:

With the US economy in recession and socialized medicine unlikely, healthcare is becoming precious. How precious, you may ask? Well, Terri Carlson is willing to marry you for your healthcare. This 45 year old woman suffers from a genetic condition, C4 Complement Deficiency, which causes her body to attack itself (similar to Lupus). Faced with skyrocketing health costs, and unable to get insurance (she's currently on COBRA), Terri did the only thing she could do: she built a website and got on YouTube. Miss Carlson is (very) desperately seeking a mate, a healthcare husband, she can partner with to save her from financial ruin and death. Her site is focused on healthcare reform, and tells her story with a great deal of gallows humor.


Needless to say, people love it. You can see one of her solicitation videos [above]. While her actions are a rallying cry for those seeking new legislation to "fix healthcare," Carlson's situation could fall under a statute already on the books: GINA. The Genetic Information Nondiscrimination Act of 2008 keeps insurance companies from using genetic data to deny you coverage.

Could it save Terri from a mate worse than death?

The GINA statute could save Terri's life, because she is clearly in the position of being discriminated against because of her genetic issues, yet there is some doubt about whether this law can protect those who need the help most. GINA protects only those whose history is discerned through observing disease patterns in families, or through a genetic test. Someone like Terri who actually has a medical history of a genetic disease is ironically not protected under GINA. This sounds a little bit too easy for the insurance companies, as though GINA was crafted in part to protect them from covering most people with genetic disorders who would typically have a life-long paper trail related to their illnesses.


The last story we posted about how insurance technicalities were literally threatening people's lives inspired many readers to accuse me of using human suffering to fuel a political fire. But what is more important than the personal impact of the way we receive medical treatment in America? You may be a Democrat, or you may be a conservative, but when you hear stories like Terri's, and see the desperate measures people are pushed to in order to stay alive, you have to at least seriously ponder whether health care needs to be radically reformed.

Let's hope for our sake as a country that we at least improve our health care system to the degree that women do not have to routinely sell their souls in order to physically survive.

 

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]]>health care reformHealth InsuranceHealthCareReformHealthInsuranceMarry For Health InsuranceMarryForHealthInsuranceAlexis Stodghill2010-02-17T17:31:00 00:00First iPhone Insurance Policy Available in the United States, Despite UK Insurance Abusehttp://insurance.blackvoices.com/2010/02/16/first-iphone-insurance-policy-available-in-the-united-states/http://insurance.blackvoices.com/2010/02/16/first-iphone-insurance-policy-available-in-the-united-states/http://insurance.blackvoices.com/2010/02/16/first-iphone-insurance-policy-available-in-the-united-states/#commentsFiled under:

Yes, we all want the shiny, new iPhone as soon as it comes out. And unless you are eligible for an upgrade, or a new user to AT&T, that latest version of the hottest phone is just not available to you unless you are willing to shell out hundreds of dollars for the full iPhone sticker price. But some UK insurers believe that many who are not eligible for an upgrade deliberately wreck their current iPhones to cash in on their insurance plans to get that new phone any way they can.

An insurer of iPhones in the UK accuses:

iPhone owners are deliberately destroying their mobiles and concocting fraudulent insurance claims in order to upgrade to the latest model, says one insurer.

Supercover Insurance has said that claims for Apple's iconic phone typically jump by 50% during the month in which a newer version is launched.

Four in ten of these claims are 'suspicious'...

Supercover's technical team has said that some returns have shown signs of being damaged by at least six hammer blows.


Perhaps shenanigans such as these are the reason why until very recently, iPhone insurance was not available in the United States. One could purchase a home insurance policy that could cover your iPhone, but at an average price of hundreds of dollars a year (often with a hefty) deductible, policies such as these are not worth the cost. If you happened to lose or break your phone, it would cost about the same to just replace it. A company like SquareTrade offers reasonable iPhone coverage, but not for a lost/stolen phone -- a problem I had recently.

Now, U.S. iPhone users have at least one more insurance option in addition to Apple Care (which only covers manufacturer's defects). O'Grady's PowerPage reports:

The Worth Ave. Group claims to be the only iPhone insurance company around and has stated that they'll cover stuff that won't be handled by your typical warranty from Apple. Whether your iPhone has been dropped, stolen, or damaged by liquid, you are covered. The annual premiums are pretty reasonable too, starting at US$55 for 3G/8GB or earlier models and going up to US$79 for 3GS/32GB models. If your iPhone encounters a fall into a toilet or falls out of your pocket at some juncture, they'll buy you a new one.

The insurance plan seems fairly comprehensive and the company has stated that they'll also cover cameras, game systems, and cell phones.

While those prices seem reasonable, the question remains about whether this service will be abused by American iPhone users when people want the newer model. At the same time, a gadget as expensive as an iPhone does need some type of coverage. As a device used on the go, it's just too easy to drop it, lose track of it, or have it stolen when you are not looking. Only time will tell if this business model will prove stable for The Worth Ave. Group.

But as someone who just had to replace her lost iPhone for a less advanced model -- and $300 -- you can be sure I will be one of the first to sign up!

Will you?

Related
+ Before iPhone 4G releases, insurance claims could increase

 

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]]>iPhoneiphone insuranceIphoneInsuranceThe Worth Ave. GroupTheWorthAve.GroupAlexis Stodghill2010-02-16T16:05:00 00:00The Latest Health Insurance News: Will Your Premiums Be Increasing?http://insurance.blackvoices.com/2010/02/16/health-care-reform/http://insurance.blackvoices.com/2010/02/16/health-care-reform/http://insurance.blackvoices.com/2010/02/16/health-care-reform/#commentsFiled under: ,


o.Excise Tax Loses Support Amid White House Push
An agreement to tax high-cost, employer-sponsored health insurance plans, announced with fanfare by the White House and labor unions last month, is losing support from labor leaders, who say the proposal is too high a price to pay for the limited health care package they expect to emerge from Congress. [The New York Times]

o.More Americans Trapped In Increasingly Expensive Plans
To critics, a 39 percent hike in health insurance for some Californians foretells skyrocketing rates for the rest of us. [The Huffington Post]


o.Premium Health Insurance Is Overrated, And Most Folks Would Be Fine Just Paying For Healthcare Out Of Pocket
To the extent that we're worried about health insurance coverage, I thought that most of us were agreed that we were talking about the benefits of catastrophic coverage, not this insane scheme we have in the US where catastrophic insurance for the kinds of risks most people can't finance comes bundled with first-dollar coverage for ordinary treatment of the sort that most people used to pay for out of pocket. [Business Insider]

o.San Diego Woman Terri Carlson, "Will Marry for Health Insurance"
One California woman has placed online a dating website of sorts. Terri Carlson is an attractive 45-year old blonde woman from San Diego, California and she would like to meet a mate. Her requirement, "health insurance." She is the only choice on the website to date (and marry) and you can only marry her with good health insurance. [The National Ledger]

 

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]]>Excise TaxExciseTaxHealthcare Out Of PocketHealthcareOutOfPocketWill Marry for Health InsuranceWillMarryForHealthInsuranceAlexis Stodghill2010-02-16T15:31:00 00:00Should An Insurance Company Deny Benefits to a Spouse Who is the Murder Suspect?http://insurance.blackvoices.com/2010/02/10/insurance-spouse-murder/http://insurance.blackvoices.com/2010/02/10/insurance-spouse-murder/http://insurance.blackvoices.com/2010/02/10/insurance-spouse-murder/#commentsFiled under:

Jesse T. Brown was shot in the back two years ago. The shooter was a white man in a pickup truck. That's all the police seem to know right now, because his case has become a cold one. Brown's murder became even more intriguing when his insurance company decided to withhold a $100,000 death benefit. The company is identifying Brown's wife, Aspen Smith, as a suspect in Brown's homicide. Even Smith had no idea she'd been identified as a suspect.

While it makes sense that any murder suspect should not be able to benefit from the death of their victim, the facts are not clear cut in this case. The only thing anyone knows for sure is that Brown was shot and killed on December 1, 2007 by a white man in his 20s. Brown was walking down the street and talking on his cell phone, when the other man asked him for directions. For reasons unknown, the man opened fired, killing Brown.


Jesse Brown's father, Timothy Brown Sr. of Laurinburg, N.C., said that he checks in regularly with authorities to find out the status of his son's murder, but that the case has been sonsidered cold for a while.

"I've been suffering trying to figure out what's been going on," he said. "I've always been told that if you can't do something in the first 48 hours, you're not going to find the person."

Brown and his wife had been married for four years when he was killed. Aspen Smith, Brown's wife, was entitled to receive $100,000 dollars in the event of her husband's death. Prudential Insurance held the policy under one of their subsidiaries, The Family Service Member's Group Life Insurance Company.

A little more than two weeks after her husband's death, Smith put in to receive the benefit. The company has put the payments on hold since that time. In June 2008, the company sent a letter to one of the investigators in the case, asking whether any of Brown's next of kin were suspects in the homicide. In a handwritten note, the investigator stated "No one has been ruled out as a suspect including Aspen J. Smith."

Prudential proceeded to file a federal lawsuit asking for the court's guidance on who should receive the $100,000 dollars. They have not explained why they waited so long to file the lawsuit.

"If it is determined that Smith intentionally killed the insured, then Smith would forfeit any right to the death benefit," the suit says.

"Prudential has no interest in the death benefit payable and respectfully requests that this court determine to whom said benefits should be paid," the suit states.

This case is quite intriguing for a few reasons, which I can quickly describe below:

1) Insurance companies make a business of not paying out their benefits: Many insurance companies hire specialists with the sole objective of reducing the amount and number of payments they are expected to turn over to policy holders. They are ruthless in keeping their money close to their chests, because the profit motive and shareholders demand it. That is why federal intervention is so important in this industry.

2) The corporate motto is "If you have to pay, then at least delay": Time is money, we know that. Well, the longer a company takes to pay you, the more interest they can earn from the money they are keeping away from you. Consider the $100,000 payment allegedly owed to the Brown family. Over a two year period, roughly $10,000 or more can be earned in interest from a risk-free investment on the money that the company may not legally own. Multiply that by 1,000 policy holders, and you've got $10 million dollars in free money going toward the company. That's why companies are quick to collect, but slow to pay -- it's just a way to do "good" business.

3) Don't try this at home: If you are thinking about killing your spouse to collect the insurance money, don't do it. You'll probably get caught, since companies are very good at uncovering insurance fraud. If you don't like your spouse or find yourself living in fear, get a divorce and a restraining order. This does not imply that Mrs. Smith had anything to do with her husband's death.

4) The police should be forthcoming with information: If Mrs. Smith did not kill her husband and is not a leading suspect, the police department should work with the family to communicate this information to the insurance company. The loss of a loved one is painful enough without the financial trauma that comes from losing one of your primary providers. The idea that "everyone is a suspect" in a cold case is ridiculous, and the police should be more professional than that. If you can't prove that the woman had her husband killed, then you need to help her get the money.

Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>black moneyblack newsblack scholarsblack wealthBlackMoneyBlackNewsBlackScholarsBlackWealthboyce watkinsBoyceWatkinsBoyce Watkins, PhD2010-02-10T13:54:00 00:00Parents of Five Year Old Sue Insurance Company That Won't Cover Cancer Treatmenthttp://insurance.blackvoices.com/2010/02/10/parents-five-year-old-sue-insurance-company/http://insurance.blackvoices.com/2010/02/10/parents-five-year-old-sue-insurance-company/http://insurance.blackvoices.com/2010/02/10/parents-five-year-old-sue-insurance-company/#commentsFiled under: ,

Health care reform may be stalled, but that is not stopping the flow of stories that show the urgent need for health care overhaul. Health care needs to be revamped in part to stop greedy insurance companies from blocking life-giving medical care to those they are contracted to support. The latest heart-breaking story comes from the parents of five-year-old Kyler VanNocker, whose parents Paul and Maria VanNocker filed a law suit against their insurance company HealthAmerica on February 9. HealthAmerica has refused to cover the only treatment that could save five-year-old Kyler's life, citing reasons that contradict the company's own track record of coverage for the child.

Ronnie Polaneczky of the Philadelphia Daily News reports:

Kyler has neuroblastoma, a rare, deadly childhood cancer that attacks the nervous system, creating tumors throughout his body.

He was diagnosed in 2007 and endured a year of medical treatment, with complications he barely survived. Thankfully, it knocked his cancer into remission for 12 lovely months, and he got to revel once again in the glories of childhood.

Last September, the disease came roaring back. This time, only one form of treatment, something called MIBG therapy, could help save his life.

But HealthAmerica refused to pay for the MIBG, which it considers "investigational/experimental" because there is "inadequate evidence in the peer-reviewed published clinical literature regarding its effectiveness." Nor is MIBG approved by the Food and Drug Administration, another criterion that HealthAmerica requires.


How come, then, asks the lawsuit, HealthAmerica covered not one but two prior therapies for Kyler that did not possess these supposed requirements?

In April 2008, the company approved Kyler's use of a drug to treat a life-threatening blood-flow complication, even though the drug wasn't FDA-approved, wasn't manufactured in the United States and wasn't "peer-reviewed."

However, it was the only known drug to treat Kyler's condition, and he responded well to it. Four months later, HealthAmerica paid for another medication that wasn't FDA-approved for neuroblastoma treatment.

Again, Kyler responded well.

So why, pray tell, is HealthAmerica playing the "experimental therapy" card in the case of the MIBG treatment Kyler now needs? Gee, money couldn't have anything to do with the decision, could it?

In my December column, HealthAmerica's Marcocci was emphatic that her company declined Kyler's MIBG therapy not because of its cost but because of its experimental nature.

But that doesn't mean MIBG is ineffective.

"It's considered the standard of care in Europe and the United States for recurrent neuroblastoma," Kyler's oncologist, Stephan Grupp, told me then. "It's not an unproven treatment with no basis in medical science. Actually, the results are often very good."

The good news is that Kyler is receiving the treatment in spite of the denial of his coverage by Health America. He is, thankfully, responding well to the treatment, which he is receiving despite his parent's inability to pay. In fact, his parents have been made bankrupt by Kyler's medical bills -- something that would never happen in countries like the United Kingdom or France. In fact, if we had a healthy, and health-sustaining, medical care system, we would not even need to report stories like these. A young boy like Kyler would be able to receive the treatment he needed, and his parents could save their money for something uplifting like his college education. Let's hope that Congress gets organized to create a health care reform plan that makes terrible stories like the one Kyler's family has had to endure a thing of the past.

 

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]]>Five Year OldFiveYearOldHealthAmericaKyler VanNockerKylerVannockerAlexis Stodghill2010-02-10T13:32:00 00:00Insurance Policy against Unwanted Pregnancy? It does Existhttp://insurance.blackvoices.com/2010/02/09/celebrity-insurance-policies/http://insurance.blackvoices.com/2010/02/09/celebrity-insurance-policies/http://insurance.blackvoices.com/2010/02/09/celebrity-insurance-policies/#commentsFiled under:

You probably thought that insurance was just for normal things that most of us use, such as your life, health, automobile and home, but that's just not the case. Actually, you can get insurance for quite a few other things, including your sexual habits. In the 1980s, rock legend David Lee Roth had his semen insured for $1 million dollars by Lloyds of London in the event that he got a groupie pregnant on the road. Perhaps his insurance should have covered him for the health effects of random, drunken sex with multiple women. That might come in just as handy.


Here are some other types of insurance that celebrities have gotten that might surprise you just a bit:

1) Dolly Parton's breasts are reportedly insured for $600,000 dollars. I thought it might be more, but what's more interesting is that she is the only celebrity I've seen to get breast reduction surgery and breast enhancements, all in the same lifetime.

2) Jo-Lo's "ba-donkadonk" is reportedly insured for $27 million dollars. If millions were paid out for behind sizes in the black community, we'd be the richest community on earth. Even I would get a payment or two, from my days of running track and playing football.

3) Mariah Carey's voice is insured for $1 billion dollars. Yes, I said a billion. I don't think Whitney and Bobby have the same policy.

Insurance is designed to do one simple thing: Make your life as good as it would have been had nothing gone wrong in the first place. So, while it might seem odd to insure random body parts, the truth is that for some entertainers, it might be a necessity. I know a few guys who might be able to use the "baby daddy insurance."

Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>black celebritiesblack financial expertsblack wealthBlackCelebritiesBlackFinancialExpertsBlackWealthcelebrity insuranceCelebrityInsurancedr boyce watkinsDrBoyceWatkinsBoyce Watkins, PhD2010-02-09T14:03:00 00:00Why Buy Home Equity Insurance?http://insurance.blackvoices.com/2010/02/08/why-buy-home-equity-insurance/http://insurance.blackvoices.com/2010/02/08/why-buy-home-equity-insurance/http://insurance.blackvoices.com/2010/02/08/why-buy-home-equity-insurance/#commentsFiled under: ,

By Wei Zhang, Seed.com Contributor

As the eye-popping drops in housing prices have slowed, financial companies have come up with a new insurance product that protects against further declines in house prices. For a small premium of one to three percent of your home price, a home equity insurance contract (also known as home value insurance) will reimburse you for losses if you sell your house in a market where the average home price in your region has dropped. The amount received is tied to the size of the decline of your local home price index (and not to your specific home, which is meant to give homeowners an incentive to maintain the home), and there is a lockup/waiting period of 18-36 months before the contract takes effect. Should you buy home equity insurance for your home? There are two situations in which you should seriously consider such a product:

1. You want to take out a home equity loan without risking bankruptcy.
Say you need some capital to start a small business, and are considering taking a loan against your home equity. In the worst case scenario, you can face a simultaneous business failure and home price decline. This would leave you with no cash flow to pay the interest on the home equity loan, and no way to sell the house to repay the loan, leaving bankruptcy as the only option. If you have home equity insurance, you have the option of selling the house to repay the loan, avoiding bankruptcy. This would at least preserve your credit score, and allow you to take out another loan in the future.


2. You are currently above-water in your mortgage but may be forced to move in the future.
If your current job is less than secure, and if upon losing your job, your best prospects lie in another city, then you should consider buying home equity insurance. This would ensure that should you be forced to move in the future, you will not face a bankruptcy situation if your mortgage has gone underwater at that time. In this scenario, you should take into account the lockup period of the insurance, and make sure that you have sufficient funds to maintain your mortgage until the end of the lockup. If you do not have enough funds to pay your mortgage until at least the end of the lockup, you could be forced into foreclosure before the insurance policy takes effect. It would also be a good option to buy this insurance if your job is secure, but you plan on staying in a residence for less than 10 years.

You should NOT buy home equity insurance for speculation purchases, or if you do not intend to move.

If you intend to stay in the area for the next 10-15 years, and already own your home outright or are confident of making mortgage payments, you should not buy home equity insurance. Firstly, it is highly unlikely that home prices will decline over a 10-15 year period. Furthermore, home equity insurance only pays out if there is a sale of your home. It does not pay out if there is a home price decline but you do not sell your home. For the same reason, home equity insurance is not a good product for speculation. The need to own a home in the area and carry a mortgage for up to 36 months, as well as the heavy transaction costs associated with a sale, will pretty much wipe out any profits you hope to gain from a speculative trade even if the equity is protected by insurance.

If you think that you want a home equity insurance product, the major companies offering these products include the Lighthouse Group and EquityLock Financial.

 

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]]>homeequityinsurancehomepriceprotectionhomevalueinsuranceAlexis Stodghill2010-02-08T18:16:00 00:00Making Whole Life Insurance Work For You As An Investment Vehiclehttp://insurance.blackvoices.com/2010/01/28/making-insurance-work-for-you-as-an-investment-vehicle/http://insurance.blackvoices.com/2010/01/28/making-insurance-work-for-you-as-an-investment-vehicle/http://insurance.blackvoices.com/2010/01/28/making-insurance-work-for-you-as-an-investment-vehicle/#commentsFiled under: ,

By Ashley Glaw, Seed.com Contributor

Insurance, until recently, was regarded as having only one purpose: covering and distributing risk throughout the insurance-holding population. Now, several options to use insurance as an investment vehicle have emerged and are becoming more popular. While weighing both pros and cons, the real question to ask is whether using different types of insurance to double as an investment account is the right choice for you.

Life insurance can have more than one purpose and more individuals are using their life insurance policies as investment vehicles. Two types of life insurance exist: term and whole life. Whole life insurance is the only option that allows for an investment portion versus just insuring and protecting the "value" of your life.

Essentially, the investment value of the whole life policy is the cash value of the policy itself, which can be invested by the insurance company in a variety of investment instruments. The real advantage to this type of policy is that the investment portion is able to grow tax and capital gains free through investment in stocks, bonds, or money-market accounts. Dividends earned on these investments may actually reduce the amount of future premiums due. Other benefits are that if you cancel a whole life policy, you can receive the cash value of the policy. You can also borrow against the plan, like a 401(k).

However, many people have questioned the real benefit of using a life insurance policy as an investment vehicle because, compared to term life insurance, premiums can be quite high and the benefit may not outweigh the short-term problems. As whole life policies mature, premiums will ultimately become lower, but, in some cases, it may be more fiscally sound to purchase a term life insurance policy and set up a separate investment account like a 40(k), Roth IRA or another account with no capital gains tax applicable to the accrual of the account.


A less well-known but equally interesting option is the HSA, or Health Savings Account. Signed in to law by President Bush in 2003, the HSA is fairly new and offers the option to invest yearly into an account that can ultimately grow, tax-free, and be used for certain medical expenses. An HSA can only be used by persons who are part of a HSA-qualified high-deductible health plan. This type of account is common for single proprietors, those who are self-employed, or people who are younger and do not anticipate needing a large policy. A limit is put on the contribution that can be made each year, but once deposited, the contributions, along with the balance of the account, are invested however the policyholder sees fit. When the cash in the account is needed, it may be withdrawn tax-free for many approved medical expenses. As an investment vehicle, this is a great way to grow money that might be spent on medial expenses anyway, while saving on taxes.

One of the major downsides to the HSA insurance policy as an investment vehicle is that unlike a 401(k), you cannot borrow the money in an HSA. In addition, a bearish market could cause real problems for people who depend on their HSA for most of their health insurance coverage. Ideally, a HSA would be used in conjunction with another product to insure coverage.

Other options for using insurance as an investment vehicle are available and should be discussed with your attorney, CPA and other financial professionals. Be sure that you and your family have adequate insurance coverage during these changing economic times.

 

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]]>insuranceinvestmentrisktaxesAlexis Stodghill2010-01-28T12:38:00 00:00Health Care Stocks React Negatively to Election of Scott Brown to Senatehttp://insurance.blackvoices.com/2010/01/21/health-care-stocks-down-scott-brown/http://insurance.blackvoices.com/2010/01/21/health-care-stocks-down-scott-brown/http://insurance.blackvoices.com/2010/01/21/health-care-stocks-down-scott-brown/#commentsFiled under:

Health care stock prices actually went down in reaction to the election of Scott Brown to the late Ted Kennedy's Senate seat. Many people believed that getting a Republican into that spot would be the "end of Obamacare," as Rush Limbaugh likes to put it. With Brown coming in, the Democrats will no longer hold the 60-seat majority that is seen as essential to getting the health care reform bill passed. Yet, it turns out that there are special issues dragging down health care stocks that make passing a health care reform bill of particular interest to the business sector. Yahoo News reports (via AP):

Health care stocks slipped Wednesday on anxiety over the challenges that lie ahead regardless of whether a health care overhaul materializes in Washington.

The drop followed an earlier surge for several pharmaceutical and managed care companies, as investors anticipated either a Republican victory in the race for a Massachusetts Senate seat or a close vote that could derail the health care overhaul push.

Republican Scott Brown upset Democrat Martha Coakley Tuesday to take the late Edward M. Kennedy's seat.

His surprise victory cast doubt on the future of President Obama's health care initiative as Democrats will no longer have a 60-vote Senate majority. That number is key because it would have allowed Democrats a better shot and passing a law that would have provided coverage for millions of people who currently have none.

Investors had worried for months about the impact this reform push might have on health care businesses. Insurers, for instance, will be subjected to taxes, fees and increased regulation under the proposed measure.

Even though the shape of the nation's health care system appears more blurry than it did at the start of the week, many health care companies that might benefit from a stalled bill dropped slightly Wednesday afternoon along with the broader market. The Standard & Poor's 500 index fell 1.4 percent...

Analysts still believe that drug companies and health insurers face daunting problems. Drug companies, for instance, have struggled to develop new medications on their own, and patents protecting several multibillion dollar drugs will expire in the next few years.

Health insurers are still dealing with enrollment losses caused by high unemployment. Medicare Advantage reimbursement cuts will squeeze profits for some companies, said Edward Jones analyst Steve Shubitz.

"The operating environment in 2010 is going to be challenging," he said.


Massive lay-offs are cutting into health insurance providers where it really counts -- at the point at which employers pay premiums. Without a new means of granting people health care, insurers will continue to lose money as the old model disintegrates. Plus, making money off expensive pharmaceuticals is a mainstay of the current system. When those medicines are no longer proprietary, how will drug firms and the insurance companies than manage drug distribution make their money? Now might be the time for health care companies to lobby the government for monies for researching new medicines, and new means of distributing health care. That way, they can get in the game, because that is where the future of the health care industry lies. This makes a lot more sense than trying to hold onto to the status quo system until the cup inevitably runs dry.

Maybe holders of health care stocks are also seeing the future. By selling off health care stocks, they are casting their votes on the viability of the current health care model with dollars. The down turn in health care stocks a sign that the investment community doubts the ability of the health care industry to sustain itself as is. If traditionally conservative stock-pickers are suggesting the need for change by abandoning health care stocks, even with the election of a Republican to an influential position, it might be time for opponents of the health care reform bill to open their eyes.

 

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]]>Health Care ReformHealth Care StocksHealthCareReformHealthCareStocksScott BrownScottBrownAlexis Stodghill2010-01-21T15:27:00 00:00'The Day Obamacare Died': Rush Limbaugh Parody HOT on Webhttp://insurance.blackvoices.com/2010/01/20/the-day-obamacare-died/http://insurance.blackvoices.com/2010/01/20/the-day-obamacare-died/http://insurance.blackvoices.com/2010/01/20/the-day-obamacare-died/#commentsFiled under:



'The Day Obamacare Died' is a mean little ditty written by Rush Limbaugh and Paul Shanklin. Sung to the tune of 'American Pie' by Don McClean, 'The Day Obamacare Died' describes the hope of its creators that President Obama actually fail in fulfilling his campaign promise of reforming health care for the benefit of all Americans. While 'The Day Obamacare Died' has been circulating online for several months, the parody is making a resurgence, no doubt due to the pressure on the health care battle related to the Democrats' loss of a Senate seat in Massachusetts.


Now that Republican Scott Brown of Massachusetts has been elected, Obamacare might in fact die. But the death of health care reform is no laughing matter.

Rumor has it that 'The Day Obamacare Died' is also a popular ring tone -- perhaps among people who don't need health care reform because they are rich, or already eligible for Medicaid? Who knows. If Obamacare does in fact die, 'The Day Obamacare Died' won't seem so funny to the millions of people searching for it on Google today. They might chuckle every time they get a phone call, but in a few years, the effect of not reforming health care on this economy will make people wonder why they spent any time fueling the fire of Rush Limbaugh's antics. 'The Day Obamacare Died' as a ring tone might also be the death knell of common sense.

 

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]]>The Day Obamacare DiedTheDayObamacareDiedAlexis Stodghill2010-01-20T14:11:00 00:00