Missouri Insurance Lawyer Blog

New Guide Makes it Easier to Understand Auto Insurance

Wed, 15 May 2013 14:22:55 -0600

The Missouri Department of Insurance is premiering its new auto insurance guide. This guide is aimed at first-time auto insurance buyers, and provides information to help better understand details of buying car insurance.

"Missouri has a very competitive insurance market with nearly 200 companies offering auto insurance," said John M. Huff, director of the Department of Insurance. "Consumers should take advantage of this market by understanding how auto insurance works. This guide provides detailed information that can help consumers make an informed decision when they are looking to insure their vehicle."

The guide outlines minimum auto coverage required by state law and optional coverage, and also provides tips to lower your insurance premiums. It comes with a worksheet to help you find the best coverage and rates. The guide also includes helpful questions to ask an insurance agent during the shopping process.

Other topics covered include:
•What to do if you are involved in an accident.
•Easy-to-scan QR codes to download the NAIC's WreckCheck mobile app (for your iPhone or Android smartphone).
•Who is covered by your auto policy.
•What is not covered in your policy.
•How to file a claim.
•How to read a declarations page.

You may download the guide here.

Over $6 Million Returned to Consumers by Department of Insurance

Tue, 07 May 2013 12:24:37 -0600

The Missouri Department of Insurance announced recently that consumers who filed complaints against their insurance companies received an additional $6.2 million in claim payments in the first quarter of 2013.

"Consumers should not assume that they've run out of options if their claims have been denied by their insurance company or they feel that their settlement is unfair," said John M. Huff, director of the Missouri Department of Insurance. "Our department is here to protect Missourians and provide them help when they've reached an impasse with their insurance company."

Health insurance had the most complaints in the first quarter of 2013 with 309 formal complaints. This was followed by auto and homeowners insurance. The top reason for complaints in the first quarter was claim denial. Delay of claim processing and unsatisfactory offer were also top complaints.

Insurance Accounts For Over 11% Of Total Vehicle Costs

Fri, 26 Apr 2013 11:41:10 -0600

The first "Your Driving Costs" study was done by Automobile Association of America (AAA) in 1950, when driving a car 10,000 miles a year cost 9 cents a mile and gas was about 27 cents a gallon. Fast forward to 2013. After accounting for gas, insurance, maintenance and depreciation, the average driver pays almost 61 cents a mile (according to AAA's current study).

The study also revealed that the price of car insurance climbed 2.76%, or $28, to $1,029 for the average motorist this year. That amounts to a little more than 11% of the total $9,122 people pay to operate their vehicles. Although the nearly 2% overall hike is significant, it is less than in other recent years. .

The numbers represent an "average sedan," which is a combination of statistics for small, medium and large sedans.

As for 2013 insurance costs, the association says its estimates "are based on a low-risk driver with a clean driving record." In its model, this "average" motorist is married, lives in a small city and commutes three to ten miles a day to work.

Former Missouri Insurance Agent Defrauded Consumers

Fri, 05 Apr 2013 14:45:47 -0600

An investigation by the St. Louis County Police Department with the support of the Missouri Department of Insurance recently led to the conviction of a former insurance broker for insurance fraud. The St. Louis County woman pleaded guilty to five counts of stealing, six counts of forgery, eight counts of commission of fraudulent insurance act and one count of attempted stealing. A St. Louis County Circuit Judge sentenced the woman to three years on each count. The sentences will run concurrently.

"Maintaining consumer trust and confidence is of the utmost importance to our department," said John M. Huff, director of the Missouri Department of Insurance. "We are pleased that this investigation resulted in a conviction. I want to commend the work of our investigations section, the St. Louis County Police Department and the prosecutor."

Numerous consumer complaints led to the discovery that the former insurance agent was selling homeowners and auto insurance policies without a license and not submitting the premium she collected from consumers to an insurance company.

Evidence from the department's investigation was turned over to the St. Louis County Police Department, which launched its own investigation that led to her arrest on charges for forgery, theft and insurance fraud.

Consumers are encouraged to file complaints against agents or insurance companies they believe have violated Missouri law. Since the beginning of 2012, the department has revoked the licenses of 27 insurance agents.

For more information, or to file a complaint, visit Missouri Department of Insurance.

Winter Storms and Insurance - FAQs

Fri, 08 Mar 2013 13:13:46 -0600

There are many areas of uncertainty arising from winter storms, including what is covered under your homeowners policy. Most homeowners choose a basic policy with typical coverage. Many large insurers offer a standard homeowners policy with broader coverage. A policy may also contain riders that either expand or reduce coverage.

Coverage varies for debris removal, power outages, lightning, frozen water pipes, water damage due to the breakage of frozen pipes, and the weight of ice and snow causing a roof, porch, or deck to collapse.

Here are just a few examples of some possible winter storm items, and what a typical homeowners policy may cover.

Debris removal for trees: Generally speaking, the insurance company will pay up to $500 for the removal of trees from the premises if the tree damages your home or other insured property. That coverage includes removing a neighbor's tree that fell on your property. It doesn't matter who owns the tree, just that it causes damage to an insured building or fence.
Power outages: The typical homeowners policy excludes from coverage damages from power outages unless they result directly from covered "perils" (such as wind, hail, lightning, etc.). For example, if lightning strikes the house and causes a power interruption, the consequent spoilage of food in a freezer is covered.
Frozen water pipes: The typical policy covers repair of frozen pipes and the damage they cause. An exception can occur when the dwelling is vacant or under construction.
Weight of ice and snow causing roof, porch, deck to collapse: The typical homeowners policy covers damage involving collapse of an insured building or any of its parts caused by the weight of ice, snow or sleet.

The Department of Insurance, Financial Institutions and Professional Registration strongly encourages you to contact your agent or insurer directly regarding specific questions you may have about your policy.

For answers to more questions regarding storms and insurance, please continue reading here.

Consumers Charged for Travel Insurance Without Permission

Wed, 27 Feb 2013 13:26:28 -0600

The Missouri Department of Insurance has reached a settlement with a company over travel insurance. Missouri consumers who bought travel insurance from Virginia Surety Company or through Cheap Caribbean, may be entitled to a refund.

A joint market conduct investigation between the Missouri Department of Insurance and the Minnesota Department of Commerce found that the company was in violation of numerous state laws and regulations. Virginia Surety routinely required consumers to affirmatively "opt-out" of buying premium travel insurance policies.

Per John M. Huff, director of Missouri Department of Insurance: "Insurance companies need to know that using technology to deceive Missourians violates consumer protection laws. Consumer protection is our top priority, and they must be protected from companies that use misleading gimmicks to sell their products."

Consumers booking vacation packages on Cheap Caribbean's website had to uncheck the box for travel insurance to "opt-out" of purchasing it. If this step was bypassed, it automatically enrolled consumers into travel insurance policies.

The settlement says Virginia Surety will refund $140,000 to Missourians who purchased travel insurance from the company through Cheap Caribbean from January 1, 2007 to October 31, 2012. The company will notify consumers who are entitled to a refund.

Additionally, other restrictions were placed upon Virginia Surety.

For more on this topic and other related insurance news articles, go to the Missouri Department of Insurance website.

Insurers Hit a Nerve Regarding Replacement Parts

Fri, 15 Feb 2013 12:40:14 -0600

Across the country, auto repair shops, customers, and regulators are questioning some insurers on their insistence on using salvaged parts or copies made by independent manufacturers. This practice commonly reduces the cost of fixing vehicles damaged in accidents or storms. The negative to this practice is that using such parts may result in substandard fixes, and they may not be covered under the vehicle's original warranties.

Last December, Boston insurance giant Liberty Mutual was ordered by a West Virginia court to stop using parts salvaged from junkyards to fix newer cars. Additionally, California regulators tightened their rules for using reproduction parts in January of this year. Repair shops in other states are considering lobbying state regulators to require insurers to pay for new parts for vehicles that are still under warranty (or with less than 36,000 miles).

Automakers such as Ford and General Motors warn customers against using salvaged parts or generic copies. Additionally, some repair shop owners and consumer advocates agree that alternative parts don't always fit correctly or match the performance of new licensed parts.

Regulations in many states require insurance companies to tell customers what type of parts are being used in repairs. Critics say the information is sometimes buried in stacks of paperwork.

According to the Property Casualty Insurers Association of America, approximately a third of the parts used to repair vehicles at auto body shops across the country involve used parts, reproductions by independent vendors, or re-manufactured parts. Used, reproduction and copies usually cost 20 to 60 percent less than new parts, which helps to reduce the cost of repairs. The insurers association estimates US insurance companies could potentially spend an additional $2.4 billion a year if in fact they had to rely exclusively on new parts. This practice would force them to increase premiums for the consumer by about 3 percent.

A Liberty Mutual spokesman said the company is still considering its legal options regarding this issue, but has stopped requiring the use of old parts in West Virginia. The spokesman said his company requires all parts be in good condition and offers its own warranty on those parts for the life of the car.

More than 1.6 Million Missourians Covered by New Autism Law

Tue, 05 Feb 2013 13:58:40 -0600

Per a new report from the Missouri Department of Insurance, the state's autism insurance law continues to benefit families affected by autism. The report also shows this new law is impacting health care costs minimally.

A 2010 law, signed by the governor, requires health insurance companies to cover specific autism therapies, including applied behavior analysis. The report also says that demand for these treatments increased more than 50 percent in 2012.

In addition to claims for general autism treatment, demand specifically for applied behavior analysis jumped 183 percent from 2011 to 2012.

John M. Huff, director of the Missouri Department of Insurance says, "Missouri's new landmark autism insurance law continues to deliver benefits for families impacted by autism. Especially encouraging is the extremely low impact on overall health insurance claims."

If you'd like to read more about this report and other insurance news, please go here.

Department of Insurance: Nearly $11 Million Returned to Consumers in 2012

Tue, 29 Jan 2013 11:10:34 -0600

The Missouri Department of Insurance reports consumers who filed complaints with the Missouri Department of Insurance received almost $11 million in additional claim payments from their insurance companies in 2012.

Per director John M. Huff: "Protecting Missouri consumers is our top priority, and they need to know we are a free resource that can assist when they run into problems with insurance claims. Sometimes all it takes is a call or letter from one of our technical experts to resolve a dispute between policyholders and their insurance companies."

What generates the most complaints for the Department of Insurance? Health insurance, followed by auto and homeowners. The most common complaints were denial of claims, claim delays and unsatisfactory offers.

The department handled 3,851 formal complaints in 2012.

Read more about the types of complaints handled last year at this link.

Remember, if you have an insurance complaint, check out the Missouri Department of Insurance website.

Have You Explored the Other Types of Auto Insurance?

Wed, 23 Jan 2013 15:10:05 -0600

Now might be a good time to check out your knowledge of "other" types of auto insurance coverage to make sure you are adequately insured.

Medical payment insurance pays for your medical costs up to the limit stated in the policy. It covers you or your family whether you are a rider or a pedestrian struck by a motor vehicle. Some policies also cover you when you are in another person's car. Passengers in your car also are covered. There are other instances in which the medical payments insurance coverage may kick in.
Comprehensive insurance pays for damages to your car from risks such as fire, theft, explosion, windstorm, hail, vandalism, glass breakage, birds and animals. Specific risks covered will be listed in your policy. This may include a deductible.
Collision insurance covers damage caused by the collision of your car. This coverage kicks in regardless of who is responsible for the collision.
Uninsured motorist insurance covers your bodily injuries as well as those of your passengers if you are struck by a car whose driver is at fault and does not have enough insurance to cover the expenses of the injuries. This also will kick in if you are injured by a hit and run driver.

If you have a late model or expensive car, you should consider purchasing comprehensive and collision insurance to protect you financially in case of damage to your car or theft. Also, be aware that most companies will not sell collision insurance without comprehensive. The lender may require comprehensive and collision insurance to protect its interest in your car (if your car is financed). You do however have the option of choosing who will insurance your car.

Optional coverage may also be offered, such as towing, rental and labor benefits. Missouri Department of Insurance has many tips on how to shop for your auto insurance.

Judge Approves Plan by Missouri Department of Insurance to Release Barton Mutual from Rehabilitation

Mon, 07 Jan 2013 12:54:39 -0600

Barton Mutual came to the brink of insolvency after paying claims from the 2011 Joplin tornado. At the department's request, a judge placed the company in rehabilitation in December 2011. Now a Barton County judge has granted a motion by the Department of Insurance to release Barton County Mutual Insurance Company from department control, thanks to its stronger financial condition.

Barton Mutual has about 29,000 policyholders. It had premium sales of $32 million in 2011, but reported claims of $48 million related to the Joplin tornado.

Financial Resolutions for 2013: Compare Insurance

Thu, 27 Dec 2012 14:34:28 -0600

Household incomes have definitely decreased over the last three years. Consumers who are willing to do some research and make some changes may be able to stretch those limited dollars.

One financial resolution we can make is to compare insurance among several different companies. Call some competing companies and ask for a quote. Always make sure you are comparing the same kind of coverage you currently have with the coverage you are considering replacing it with.

When it comes to auto and homeowners insurance, the amount of the deductible influences the rate. The higher the deductible -- the lower the premium. By assuming more of the risk yourself, you can reduce those insurance payments. Just make sure you can afford to pay the higher deductible in the event you must make a claim.

The beginning of a new year is a perfect time to do that. You can read more money-saving tips for 2013 here.

Department of Insurance Reports ID Thefts of 92,000 Missourians

Fri, 14 Dec 2012 15:54:37 -0600

The Missouri Department of Insurance says the personal information of more than 92,000 Missourians was accessed by identity thieves who attacked computer systems at Nationwide Insurance. Nationwide also does business as Allied Insurance. Missouri Insurance Director reports the attack affected consumers who received quotes for auto insurance after August 2011.

The company believes the thieves accessed names, Social Security numbers, driver's license numbers, dates of birth and potentially marital status, occupation, gender and employer information.

"Nationwide has indicated to me that they have sent notices to all Missourians who, to the company's knowledge, have been affected by this data breach," reports Insurance Director Huff. "The company is offering free identity theft protection and credit monitoring services, and I encourage Missouri consumers to take advantage of these offers."

If you believe you may have been affected by this security breach, contact numbers and more information can be viewed at the Department of Insurance site.

Insurance for Your Pets?

Fri, 07 Dec 2012 14:29:14 -0600

According to the American Pet Products Association, in 2011, pet owners in the U.S. spent nearly $51 billion on their pets. That amount has increased 73% in the past ten years and exceeds what we spend annually on child care. Veterinary care accounts for $13.4 billion of the total.

How far are you willing to dip into your wallet for your pets? Twenty years ago, treatment options for common illness or mishaps were limited. Today, many of the same options for human medical treatment are available for our animal friends. With those ever-increasing options also comes a bigger price tag.

Rather than choose between a pet's well-being and their wallet, owners are opting for pet insurance in growing numbers. As with any insurance, the consumer must weigh deductibles and coverage against the possible payout. Many times, unless your pet comes down with a serious illness or has an accident that requires extensive veterinary treatment, it's unlikely you'll recoup much more than the premiums you pay for a policy.

However, it you are a pet owner who considers your pets to be a part of the family, you might take the time to learn more about pet insurance for your pet. You can start by reading more on this topic here.

Life Policy Locator Service

Fri, 30 Nov 2012 21:14:29 -0600

Do you suspect that a deceased loved one had a life insurance policy or annuity contract, and thus far have been unable to locate it? The Department of Insurance may be able to help you. The department has established the Life Policy Locator service to help consumers find benefits from life insurance policies or annuity contracts purchased in Missouri.

Those individuals who may submit a search request form include persons who believe they are beneficiaries, as well as executors and legal representatives of the deceased person. Completed forms must be notarized and include an original certified death certificate prior to mailing to the department.

Requests will be forwarded to Missouri-licensed life insurance companies no later than 30 days after the request was submitted. Insurance companies will then contact the beneficiary if a policy is indeed located.

If the person making the request is not legally entitled to information about the life insurance policy or annuity, the insurance company will not contact that person. However, the insurance company will begin a search for the beneficiaries named in the policy.

More information on this topic, as well as a search request form to download, can be obtained here.