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 Insurance Coverage for Children It is the time of the year when questions come up about students off to college and what is covered by your homeowners and personal auto policy. Policy forms vary. Most of our companies use the Insurance Service Office (ISO) forms. Other forms may be the same, broader, or more restrictive. The homeowners policy provides personal property and personal liability coverage for students at college. The homeowners policy says that the student is an "insured" if the student is enrolled in school full time (as defined by the school), was a resident of your household before moving out to attend school full time, and the student is under age 24 and your relative. At age 24, a special endorsement must be included to extend coverage. The homeowners policy limit of liability for personal property usually located at an insured residence is 10% of the limit of liability for personal property at the residence premises or $1,000 whichever is greater. For example, if your homeowners policy provides $140,000 of coverage for personal property at the residence premise, it will provide up to $14,000 for the student away at college. There is limited coverage for theft, but generally extends coverage during semester breaks. Students who are renting an apartment may be adequately covered by the homeowners policy. If they are eligible for their own tenant homeowners policy, it may be worth it to provide this coverage. Some leases may require evidence of a separate policy. Your personal auto insurance policy will probably provide the proper coverage, if the vehicle is owned and insured by the parents’ personal auto insurance policy. If the vehicle is owned by the student, it must be covered under a policy written in the student’s name. If the vehicle is owned by the parent(s), it should NOT be insured under a policy written in the student’s name. We can review and discuss your situation and give you more specific advice when you call. Who Needs A Personal Umbrella Policy? Personal umbrella protection is a low-cost insurance policy that picks up where the liability coverage included in a personal auto and homeowners policy leaves off. Personal umbrella insurance provides additional coverage if you are sued for damages suffered by someone as a result of an accident involving your car or property or during recreational activities such as boating or golfing. Life On the Liability Ledge We all understand the general need for insurance. But what happens when an accident occurs that exceeds the coverage an auto or homeowners policy provides? Or what if you are sued for something that falls outside the scope of homeowners or auto coverage? Don't allow yourself to live one claim away from a potentially catastrophic lawsuit. Consider the following scenarios: Full Throttle Loss Situation: A lifelong boater was docking his new Cobalt into a slip. A fellow boater was directing him in when the driver mistakenly hit the throttle forward and knocked the other boater to the ground. He sustained a fractured skull, a broken jaw bone and dental damage. Outcome: The injured boater was a well-known speaker, and his future earning ability was greatly diminished by the permanent damage to his jaw. The court awarded him $750,000 for pain and suffering and loss of income, exceeding the boater's insurance liability of $300,000. Damages: $750,000 Insurance Liability Limit: $300,000 Boater's Responsibility: $450,000 (This amount would be covered by a $1 million personal umbrella policy.) Nightmare On The Second Tee Situation: It was a great day for golf. The driver of the golf cart was going full speed to catch up with the rest of his foursome. His thoughts were on the next shot and he never saw the other guy emerging from the rough on the adjacent hole. The collision left the pedestrian paralyzed with a broken back. Outcome: The jury felt no pity on the cart driver. The award of $3.2 million greatly exceeded the driver's homeowners insurance liability of $300,000. Damages: $3,200,000 Insurance Liability Limit: $300,000 Homeowners Responsibility: $2,900,000 (This amount would be covered by a personal umbrella policy with a limit of $3 million or more.) Face First Situation: She was hosting one of those in home product parties. A dozen ladies were invited to see the latest offerings from the well-known make of home decorating products. The neighborhood was shattered by the screams of a person wailing in pain. While walking up to the front door, one of the guests had tripped on a piece of sidewalk that had sunken in, exposing an elevated edge of concrete. The fall caught the woman off guard and she had no time to brace for it. Her face took the brunt of the accident. Outcome: No surprise. Another jury seeing deep pockets from the insurance company awards $623,000 in damages. Damages: $623,000 Insurance Liability Limit: $300,000 Homeowners Responsibility: $323,000 (This amount would be covered by a $1 million umbrella policy.) Little League Crash Situation: Your 18-year old son has crashed into a carload of Little League players and the accident was very serious. A few weeks later your family is shocked at just how serious. Several multi-million dollar lawsuits are filed by parents of the seriously injured boys. Your auto liability limit is $500,000. Your family is facing financial ruins. Outcome: Total damages awarded were $5,000,000. Damages: $5,000,000 Insurance Liability Limit: $500,000 Parents' Responsibility: $4,500,000 (This amount would be covered by a $5 million personal umbrella policy.)
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LATE SUMMER 2009 Pennsylvania: Health Insurance Coverage
Those eligible children are unmarried, have no dependents, are residents of the Commonwealth or enrolled as a full-time student at an institution of higher education and are not provided private insurance coverage or enrolled in, or eligible for, government benefits. The coverage expansion occurs at the discretion of the employer and does not preclude an increase in premiums related to covering children for these additional years. The law applies to new health contracts and renewals occurring 180 days (six months) after June 10, 2009, and then on a rolling basis as contracts are made or renewed. Policies that are issued or renewed less than six months after signing will wait until next year. This timing provision gives insurers time to revise their policies to be consistent with this new requirement. Prior to the law, insurance companies were only required to cover children on their parents' insurance until the age of 19, if the employer offered dependent coverage. At the current time, almost 40 percent of those who are uninsured in Pennsylvania are between the ages of 19 to 29.
Pennsylvania Mini-COBRA Rendell signed Act 2 of 2009 to help address the growing need to extend health care options for those newly unemployed. Employees laid off by small employers are now eligible for state Mini-COBRA benefits. Prior to this, only those who worked for companies employing 20 or more were eligible for federal COBRA benefits. These benefits extend health coverage under the employer's insurance plan. This also means that the 65 percent reduction in COBRA premiums authorized under the new federal stimulus law will now apply to Mini-COBRA benefits for workers laid off from small businesses, for up to nine months. The federal COBRA law allows employees to purchase continuation health coverage after they leave employment from 18 to 36 months after their employment ends. Pennsylvania's Mini-COBRA applies to employees of smaller businesses (2-19 employees) and it is for nine months. The act is effective July 10, 2009. Covered employees and their eligible
dependents who lose group health insurance
coverage through a small employer as a result
of a "qualifying event" are eligible for Mini-
COBRA continuation coverage. The
employees and dependents must have been
continuously insured under the group policy
or for three consecutive months ending with
the employee's termination. A qualifying event is an event that would result in the loss of coverage for the covered employee or eligible dependent, including: death of the covered employee, termination of employment (voluntary or involuntary, except for the employee's gross misconduct), reduction in hours, divorce or legal separation, eligibility for Medicare, dependent child ceasing to be dependent, bankruptcy of the employer. An employee whose group coverage terminates on or after July 10, 2009 will be eligible for Mini-COBRA. When health coverage ends due to a "qualifying event," the employer must provide notice to the covered employee. An employer must give notice of a "qualifying event" - to the plan administrator (if different than the employer), the covered employee, and the insurance company - within 30 days of the "qualifying event." Employees eligible for Mini-COBRA continuation benefits will be eligible for premium assistance under the American Recovery and Reinvestment Act of 2009. It was written to be a comparable law so that Pennsylvanians working for small employers will be eligible for this premium assistance, as long as you have been involuntarily terminated on or after the effective date of the act (July 10, 2009) and before January 1, 2010. If an employee or eligible dependent qualifies, he will be required to pay 35% of the premium amount for Mini- COBRA continuation coverage. The remaining 65% portion is covered by the federal stimulus program. A small business subject to the Mini-COBRA law that has a former employee eligible for premium assistance will not have to fund any of the premium assistance amount. The employer's insurance company will handle the financial arrangements, and will get a tax credit from the federal government for the 65% portion. At the time that this article was compiled, the Model Notice from Pennsylvania Insurance Department and Department of Labor & Industry was not released and major group health insurance carriers have not provided additional guidelines. Additional information should be available at the Pennsylvania Insurance Department link shown below and at group health insurance carrier websites.
An "Umbrella" of Liability Protection
The umbrella policy coverage "kicks in" where existing coverage ends, up to the limit of the umbrella policy purchased. It can provide additional liability protection at limits of $1 million to $5 million (or more) over and above the limits noted in an existing basic insurance in your auto and homeowners policy. The cost of a personal umbrella policy varies by company and will vary by the number of drivers, vehicles, age of drivers and type and number of recreational vehicles and properties owned. The annual cost for a $1,000,000 limit can be as low as $150. Personal umbrella coverage is written by many auto and homeowners insurance carriers and "stand-alone" coverage is also available through RLI Insurance Company. Contact us for a quote and more information. A self-rating application and rate sheet for the RLI program are posted on our website.
Assurity Life Introduces Simplified Disability Income What if you were injured or seriously ill and couldn't work? How would you pay your bills - mortgage, car expenses, medical care/insurance, credit card payments, utilities, childcare, groceries, retirement and college? Could you borrow money? Rely on savings? Live on your spouse's income? Sell your possessions? Depend on Social Security disability coverage? Assurity Balance Simplified Disability (DI) Insurance can help protect your financial stability if you are unable to work due to a disability. The policy pays you a monthly benefit to help you pay your bills until you get back to work. The policy can also be structured to work with any group DI coverage you have from your employer to provide up to 100% of your salary if you become disabled. You choose the length of the benefit period - six months, one year or two years. The policy has only 2 occupational classes and simplified underwriting. Medical exams are not required and there are only a few medical questions. You can choose a monthly benefit of up to $2,500 with elimination periods ranging from 30 days to 180 days. Benefit options and rates are included in the application. Give us a call to discuss your disability insurance needs. We have many other quality disability income programs including fully underwritten plans with higher benefit amounts and longer benefit periods. Ask for Randy Riegner or Debbie Rotenberger. SmoKings - New Collegeville Main Street Tenant We are pleased to welcome the newest Collegeville Main Street business - SmoKings to the space at the front of our building. SmoKings offers premium cigars, cigarettes, tobacco, accessories, hookah and lottery tickets. LEE DOUBLE S INC. DBA SmoKings has additional locations in East Norriton and Royersford. You can reach them at 610-409-1127 or smokings.cigar@gmail.com. Stop by and check out what they have to offer.
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Act 4 of 2009 (Senate Bill 189), which was signed into law on
June 10, 2009, expands health insurance coverage for children of
insured parents. It allows adults up to age 30, under certain
circumstances, to remain covered by their parents' health
insurance. 