Insurance Consultants Of Maine Newsletter

Insurance Consultants of Maine Newsletter
Scott Simmonds, CPCU
July, 2004
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Feel free to forward this newsletter to your colleagues. Your comments, questions and suggestions are always welcome. Email: scott@icofmaine.com

Violation of Privacy Issues in Insurance - “You can't do that! You're violating my privacy!” Our society values confidentiality. Information about me is mine. I give you information to use and expect that you'll protect it. Internet sites and companies have well published privacy policies to assure us of the safety of our information. Your customers value their privacy too. What happens if your company is accused of violating a customer's privacy? What happens if customer information is distributed or revealed? Will your insurance protect you?

Most commercial general liability policies include personal injury coverage. Such provides protection for libel, slander, defamation of character, wrongful eviction and violation of privacy. The coverage is limited by an exclusion - it does not provide coverage if an insured knowingly violates a persons privacy. This isn't a clever loophole. The intent of insurance is to protect you from those actions where damage is not expected or intended. If you intentionally ram a car in the parking lot don't expect your insurance to pay. The same holds true for violation of privacy – if you publish material knowing that the release will cause a violation of privacy don't expect insurance to help you out of your jam. If data accidentally gets out, look to your general liability policy for protection.

Beware! Some insurance companies are adding extra exclusions removing this coverage from policies. Advertising / marketing organizations and internet service providers may have additional restrictions. Review your insurance!

Non-Admitted Insurance Companies - Insurers can be divided into two categories, Admitted and Non-Admitted. Admitted insurers are, in effect, licensed by the state. Their financials, policies and rates are submitted to the state insurance regulators for approval. They're also part of most state guarantee funds. Should an admitted carrier become insolvent (the insurance equivalent of bankruptcy) the fund pays losses by policyholders - similar to the protection offered to bank depositors by the FDIC.

Non-Admitted insurers choose not to go through the state's review process. States may "authorize" certain non-admitted insurers to sell their policies. Policyholders in such companies are not eligible for the guarantee fund. Insureds must also pay a policy premium tax in most jurisdictions.

Don't read into the above that non-admitted insurers are bad insurers - some of the best insurers in the world choose to go the non-admitted route - American International Group, certain companies within the Travelers family and Lloyds of London are non-admitted carriers. For a listing of insurers that are approved, though non-admitted, go to your state insurance department website.

Computer Madness - Spam, Spyware, Viruses, Worms! Amazing the people out there intent on ruining the world of the Internet and computers. I'll join the chorus of reminders. Backup your data. Keep your virus software up to date. Use a firewall. Be careful what you open for email files. Get your operating system updates!!! If any of these topics is unfamiliar to you see your IT department. If you don't have an IT department find someone to help you get up to speed.

Long-Term Care Insurance -- To Buy Or Not To Buy - After almost twenty years long-term care insurance is finally catching on. More and more insurance agents are marketing the coverage. Does everyone need to buy insurance against a nursing home stay?

The poor don't need long-term care insurance. Those of limited means can look to the state (through most Medicaid programs) to pay for nursing home stays. The rich don't need long-term care insurance. They have the assets to pay the $150 to $300 a day cost. Estate planning can also limit exposures and provide for funds.

LTC is for the middle. Premiums are low for those in their fifties and increase with age. Future insurability is one reason to buy the coverage while you're young. Develop a health condition that has the potential to limit your ability to take care of yourself and you may find your unable to buy the coverage. $7,000 a month is the cost of a stay in many nursing homes - don't count on Medicare! It only provides limited coverage.

Most state insurance departments have buyers guides to help you navigate the available policies. Visit your state's web site and type “long term care insurance” in the search box.

20 Biggest Mistakes In Business Insurance - Subscribers to this newsletter can receive a copy of my newest e-book, "The 20 Biggest Mistakes In Business Insurance." Email me at scott@icofmaine.com and I'll send you a free copy. Downloads of this new e-book have already exceeded my two year old workers comp ebook. New York Times bestseller? Not a chance! I am getting great comments though. Many from insurance agents!

My 25 Years In Insurance - This month marks my 25th year in the insurance business. Back then, I thought I wanted to be a stock broker and ended up in an insurance agency on Broad Street in Boston. In the last quarter century I have worked in a variety of insurance agencies around the country. I've had hundreds of clients in every imaginable business. I've worked with multinational companies and "mom & pop" stores. Four years ago I decided to only work for insurance buyers - helping with insurance questions and problems from the user's perspective. In that time I've build a clientele of businesses who appreciate having someone on their side rather than someone selling a policy. I love what I do.

Thanks to all my clients, past and present. I look forward to another 25 years of helping you with your insurance problems.

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Your Privacy - I will never sell or distribute your email address to any other person or organization.

Life Insurance - How secure is your life insurance? Do you have the right kind? Is the policy set up correctly? I can help. Call 207.284.0085 or email me at scott@icofmaine.com. Remember, I don't sell insurance so I'm unbiased.

Need A Speaker? I'm pleased to speak to trade, business or service associations about insurance topics. Call 207.284.0085 or email me at scott@icofmaine.com. Also check out my speaker's page at www.icofmaine.com/ispeaker.html.

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Scott Simmonds, CPCU
Insurance Consultants of Maine, Inc.
20 Sofia Road
Saco, ME 04072-9017
Phone 207 284-0085
Fax 801 991-4027
scott@icofmaine.com
http://www.icofmaine.com/

Unbiased Insurance Solutions
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Insurance Consultants of Maine, Inc. is an unbiased, fee-only insurance and risk management advisory firm. We don't sell insurance and never accept fees or commissions from insurance companies or agents.

Comments regarding insurance policies or products in this newsletter are for information purposes only and do not constitute an endorsement. We accept no fees or payments of any kind from any insurance organization or any company mentioned in this newsletter.