The Underwriter wants to know everything about you — let’s learn more about them.
The Who
Insurance underwriters are trained to identify, understand and prevent risks in either life, health, or property and casualty insurance. Property and casualty is a broad field that can include business, home or auto insurance. Their specialized risk assessment knowledge enables them to determine whether they will insure something or someone and for how much. Underwriters decide whether to agree to be financially responsible to the insured if something unexpected or catastrophic happens related to the policy.
So, the underwriter decides if you are worth a monetary risk to cover you and how much premium will be charged if approved.
The What
The U.S. Bureau of Labor Statistics describes what an underwriter does as follows:
Analyzing insurance applications
Identifying the risks of insuring applicants
Screening applicants based on a specific set of criteria
Evaluating recommendations from underwriting software
Contacting field representatives, healthcare providers, and others for more data
Deciding whether to offer insurance
Determining appropriate premiums and amounts of coverage
Reviewing and updating the rules for automation software
The difference between the specialties lies in the criteria used to make the decision. For life insurance, examples of the criteria are age and financial history. For health, the main criteria are medical history and age. For auto insurance, underwriters look at driving record, age and type of vehicle. In everything they do, insurance underwriters must strike a balance between risk and caution. Too much risk means the insurance company will pay out too many claims. Too much caution and the carrier will not make enough money from premiums.
The Where
Underwriters work for insurance companies and can usually be found at desk in the company headquarters or a regional office. They use software systems to analyze and rate insurance applications, make recommendations based on risk, and adjust premium rates according to the risk. Sometimes they might work overtime or on weekends, depending on the type of underwriting, and they may inspect the property or vehicle in person. The average salary has been on the rise over the years and depends upon qualifications, education, experience and location.
The How
Insurance underwriters use a software program to recommend coverage and premiums based on the specific data provided by the applicant, and will approve or reject the application after an evaluation of the software results. For simple and common types of policies, such as those for automobile or homeowners’ insurance, the automated recommendations are commonly followed.
For more complicated types of insurance, such as workers’ compensation or business income, underwriters rely on analytical insight and experience. For example, in some cases, a reported bankruptcy or cancer treatment might impact a policy so they will review other sources such as medical records and credit scores.
The How To (become an underwriter)
{from kaplanfinancial.com}
“In general, to become an insurance underwriter, you should have excellent decision-making and mathematical skills, strong analytical and computer skills, and good interpersonal skills. You should also be detail-oriented. You’ll need a bachelor’s degree at a minimum. You do not have to be a finance or business major; however, you should plan to complete mathematics, economics, finance, and business courses. Unlike insurance agents and financial representatives who sell insurance as an investment, you do not have to have a license to become an underwriter. However, in some of the larger insurers, having an insurance license can help you stand out in a group of prospective trainees or associates.
Underwriters who are just starting out are usually required to be an associate for an established underwriter, learning about basic applications and common risk factors on the job. As they become more experienced, they begin to work more independently, and their work becomes more complex. Also, big insurance firms often offer comprehensive training for new hires. Eventually, they no longer need supervision and will work independently as underwriters. Most underwriters participate in underwriting professional development to sharpen their skills and knowledge.”
The Why
The role of an insurance underwriter includes responsibilities such as:
Evaluating information about the potential client (i.e., age, marital status, medical history, driving record, etc.)
Using underwriting software to analyze the risk profile of the potential client
Deciding whether or not insurance coverage should be offered to an individual
Calculating costs to provide coverage and establish the pricing for the premium
Developing solutions to reduce the risk of paying future insurance claims
Analyzing actuarial tables, which is the data provided by actuaries
Although some of the work is automated and is carried out by insurance software, as mentioned above, an underwriter will still be involved with a potential client if a change in risks or change in the conditions of the insurance policy is likely. The underwriter will determine whether or not the insurance company would like to continue with providing insurance coverage or if it will establish new insurance terms with the client.
The End, but actually the beginning
The term underwriter first emerged in the early days of marine insurance. Shipowners sought insurance for a ship and its cargo to protect themselves if the boat and its contents were lost. Shipowners would prepare a document that described their ship, its contents, crew, and destination and go to the local hangout or pub, usually.
An agreed-upon rate and terms were set out in the paper. Business people who wished to assume some obligation or risk would sign their name at the bottom and indicate how much exposure ($) they were willing to accept. These businessmen became known as underwriters. They would get a return on their investment or help cover the loss in the event of an accident.
This post is for the intrepid traveler daring to leave their house.
Disclosure: I’ve never purchased travel insurance. I almost did when I took my daughter to NYC for her 18th birthday in 2020–January, mind you–but I made sure the arrangements were all refundable by a certain date. The fact that the city shut down less than two months later because of a pandemic would have been unimaginable, and has prompted travelers to take precautions they might not have otherwise. Here’s a primer on travel insurance.
I was more concerned about weather delays in NYC January 17-19, 2020.
Travel insurance is coverage designed to protect against risks and financial losses that could happen while traveling–from minor inconveniences like missed airline connections and delayed luggage to more serious issues including injuries or major illness. As we know, Covid-19 has shoved the elephant out of the room, so I’ll begin with FAQ regarding travel insurance coverage and cancellation for illness.
Does Travel Insurance Cover the Coronavirus Pandemic?
On January 21, 2020, the Coronavirus disease 2019 (COVID-19) became a named event, which affects the travel insurance coverage available for new policies purchased thereafter because it is known. Insurance is designed to protect you from an unpredictable or spontaneous loss. For example, if a hurricane ruins your trip, travel insurance would only cover you if you bought it before the hurricane formed. Be sure to purchase insurance as early as possible and always read the fine print no matter what policy you choose.
Comprehensive travel insurance
This is the typical policy that people imagine when they think of trip insurance. The comprehensive policy usually covers delays, cancellation due to sickness or death, lost luggage and some emergency medical costs.
Benefits included in comprehensive coverage may apply in the following unforeseen scenarios:
Emergency Medical Coverage: a sick traveler must see a doctor and/or go to the hospital during a trip.
Emergency Medical Evacuation Coverage: in rare cases, a sick traveler requires an emergency medical evacuation to the nearest appropriate hospital or back home for recuperation.
Trip Interruption: an extremely sick traveler cannot continue with a trip and must return home.
Cancel For Any Reason: Currently, if you are looking for trip cancellation coverage because you are concerned about the coronavirus, you will now need to purchase a plan that includes Cancel For Any Reason since the travel warnings are now foreseen. This benefit is time-sensitive and has other eligibility requirements, so not all travelers will qualify.
Some plans may exclude epidemics/pandemics and may not provide coverage for related issues. Please be sure to read the plan details carefully before purchasing.
Over the course of the coronavirus pandemic, many traditional travel insurance companies have expanded or adapted their existing coverage for travelers. In addition to the coverages above, examples of these may include:
Reimbursement for covered medical treatment during a trip due to a COVID-19 illness
Get sick with COVID-19 and must cancel a trip by physician’s order
Physician orders a quarantine before trip
Lost a job during the coronavirus pandemic by no-fault of your own
Cancel For Any Reason (CFAR) offers the most trip cancellation flexibility and is the only option available to cover fear of travel. CFAR is an optional, time-sensitive benefit with eligibility requirements, so not all travelers will qualify. Full terms of coverage will be listed in state-specific policy. If eligibility requirements are met, reimbursement is up to 50%-70% of the insured prepaid non-refundable trip cost.
InsureMyTrip.com
Does Emergency Medical Coverage Travel with You?
Some travel insurance plans do offer emergency medical benefits if you need a doctor or hospital visit during a trip. Check your personal health insurance plan first to understand coverage already in place. However, most health insurance plans don’t provide full coverage in foreign countries and some health plans provide no coverage at all. Travel insurance works in addition to your everyday health insurance and can help supplement medical costs if you get sick or injured before or during your vacation.
If you have Medicare or Medicaid, be aware that medical costs overseas are generally not covered.
Before purchasing a policy, it is imperative to read the policy provisions to see what exclusions apply, such as preexisting medical conditions, and do not assume that the new coverage mirrors that of an existing plan.
Emergency medical coverage may be redundant. Most health insurance companies pay “customary and reasonable” hospital costs if you become sick or injured while traveling, but few will pay for a medical evacuation.
From InsureMyTrip.com, medical plans and coverage to consider include:
Travel Medical Insurance is offered either as part of comprehensive travel insurance plans or can be purchased as a stand-alone plan. These plans only offer coverage while traveling outside of your home country. Contact your regular health insurance provider to inquire about global benefits and how your benefits apply when you are outside of your home country.
Emergency Medical Evacuation Coverage provides transport assistance in the event that you become seriously ill or injured while traveling. Generally, these plans provide emergency medical evacuation to the nearest appropriate care facility if the assistance company and the physician feel you’d be better suited at a different facility. For those who want to ensure transport to the hospital of their choice, travelers may want to consider also purchasing an air medical transport membership. If hospitalized during your trip, this membership may provide transport to a hospital of your choice, often closer to home, without it being determined as “medically necessary” as required on typical travel insurance plans. (For medical transport memberships, some destination restrictions may apply for evacuations related to COVID-19.)
Trip Interruption Coverage is included in travel insurance comprehensive plans. It’s a benefit that offers travelers reimbursement of their pre-paid, non-refundable expenses should they unexpectedly need to cut their travels short. However, there are exclusions for this, so be sure to review your policy carefully.
Travel insurance can help cover expenses stemming from lost or stolen luggage. This is especially useful if an airline loses your bags, as it can be very difficult to get them to pay for lost luggage. In the United States, the Department of Transportation (DOT) requires airlines to compensate fliers up to $3,300 for lost baggage. In foreign countries that amount is a maximum of $1,750. But to receive those maximum amounts, passengers must provide receipts proving the value of the lost bags and their contents. And some airlines require that the claim be filed within 21 days.
To make matter worse, DOT doesn’t define when baggage is officially lost (as opposed to just “delayed”). Overseas, a bag is only considered “lost” after 21 days. For delayed bags, DOT only requires airlines to provide victims with enough money to buy necessities like clothing, medicine and toiletries.
The possibility of baggage and personal belongings being lost, stolen, or damaged is a frequent travel problem. Many travel insurance policies pay for belongings only after you exhaust all other available claims. Your homeowners or renters insurance may extend coverage outside of your domicile, and airlines and cruise lines are responsible for loss and damage to your baggage during transport. Also, credit cards may provide automatic protection for things like delays and baggage or rental car accidents if used for deposits or other trip-related expenses.
What if. . . Plans Change
Travel insurance can help cover costs stemming from trip cancellations. Most resorts or cruise lines won’t give you a full refund in the event of a cancellation. If you cancel two weeks or more before your trip, most resorts will at least charge a cancellation fee; many cruise lines might only give you a 25% refund or will give you partial credit on another cruise. If you cancel within two weeks of a trip, with most companies you won’t give any refund whatsoever. Unforeseen circumstances happen, and you want to be covered just in case.
Before looking into travel insurance, think about the reasons you might cancel. Is a trip delay due to weather going to dramatically change your vacation? Is it possible your school year will be extended, or you will need to take a work-related trip instead? Are there acts of war in the country you’re going to visit? Are you nervous about the CDC issuing a travel warning for your vacation destination?
These are all valid reasons, but not all travel insurance covers these concerns. When booking a pricey trip, investigate insurance at the same time. Some policies require you buy travel insurance within a certain amount of time after making your initial trip payment, such as within 10 to 30 days.
Purchasing Travel Insurance
Travel insurance will vary by the provider on cost, exclusions, and coverage. Be sure to read all disclosure statements and check what protections your credit card might offer.
Coverage is available for single, multiple, and yearly travel. Per-trip coverage protects a single trip and is ideal for people who travel occasionally. Multi-trip coverage protects numerous trips occurring in one year, but none of the excursions can exceed 30 days. Annual coverage is for frequent travelers. It protects for a full year.
Premiums are based on the type of coverage provided, a traveler’s age, the destination, the duration, and the cost of your trip. Standard per-trip policies cost between 4% to 10% of the trip’s cost. Specialized policy riders focus on the needs of business travelers, athletes, and expatriates (i.e. working overseas).
Also, it is suggested that a traveler register travel plans with the State Department through its free travel registration website. The nearest embassy or consulate can contact them if there is a family, state or national emergency.
Worthy travel insurance plans always include the following provisions:
Coverage for most countries in the world (including the places you plan on visiting).
Some coverage for your electronics (and have the option for a higher coverage limit).
Coverage for injury and sudden illnesses.
Offer 24/7 assistance (you don’t want to call to be told to call back later).
Coverage for lost, damaged, or stolen possessions like jewelry, baggage, documents, etc.
Coverage for cancellations for hotels, flights, and other transportation bookings if you have a sudden illness, death in the family, or some other emergency.
Coverage for political emergencies, natural disasters, or strife in the country that cause you to head home early.
Financial protection if any company you are using goes bankrupt and you are stuck in another country.
Recommended online agencies for the best service and value are:
Just as important as knowing what your plan covers is knowing what it doesn’t cover. Generally speaking, most plans don’t cover:
Accidents sustained while participating in extreme adventure activities such as hang gliding, paragliding, or bungee jumping (unless you pay for extra coverage).
Alcohol- or drug-related incidents.
Carelessness in handling your possessions and baggage.
Recklessness (how “reckless” is defined is a matter up to each company).
Pre-existing conditions or general check-ups. For example, if you have diabetes and need to buy more insulin, you won’t be covered. If you want to go see a doctor for a general check-up, you aren’t covered either.
Lost or stolen cash.
Your theft coverage won’t cover you if you left something in plain sight or unattended.
If civil unrest makes your destination unsafe but your government hasn’t called for an evacuation, you’re probably out of luck too.
Options to include:
Payment for expenses if you get sick or injured on a trip
Travel medical and accident coverage
To be taken to the nearest hospital or flown home if necessary
Emergency evacuation and repatriation
Reimbursement if you get sick and have to cancel or end your trip early
Trip cancellation AND trip interruption
Payment for lost, stolen or damaged luggage or goods
I believe travel is good for the soul, and travel insurance is good for peace of mind. Look into the options, talk to your agent, and decide whether it’s worth it to you.
A weatherized home will be healthier, safer and more energy efficient. Here’s why and how to do it.
Every winter, school-aged Tennesseans (and weary teachers) pray for enough snow to cancel school. They have tricks, like flushing an ice cube and sleeping in pjs turned inside-out, in hopes that the snow will stick. Some areas in the mountains have accumulation, but we here in the valley don’t see much; rather, the snow quickly melts upon landing. When school is canceled, usually the danger is from black ice and most lawns are clear by the afternoon, so we don’t have a typical winter filled with snow. The effects of harsh weather can accumulate despite what we see. Keep reading to find out the benefits of and instructions for weatherizing your home. Note: all seasons contribute to the wear and tear of a home and your health.
Tennessee has all four seasons – winter, spring, summer and fall – each with different weather conditions.
weatherization benefits your health
Weatherization can maintain or improve respiratory health, mental health, physical safety and wellness. Managing a steady temperature improves indoor air quality and benefits everyone. Homes that get too cold in the winter or too warm in the summer increase the risk that residents will develop illness and increase the number of visits to the doctor or hospital. Poor indoor air quality or asthma triggers increase the risk of illness, so people with preexisting medical conditions like asthma, emphysema or COPD will likely benefit even more.
How do I know if my home is weatherized?
If you have to ask, it probably isn’t but here are some ways to know. Do you feel comfortable at home? If you are experiencing unmanageable temperatures, uncomfortable indoor air conditions, or excess moisture in your home, you will likely benefit from weatherization. Some other things to look for are moisture condensed between the glass panels of a window; a furnace that cannot maintain a comfortable indoor temperature; a drafty door or window; a leaky roof.
Air sealing, insulation, moisture control and ventilation are all types of weatherization. The US Department of Energy (DOE) has recommendations for these four topics:
Do: One of the first things you should do is schedule a furnace inspection. Whether you have forced hot air or hot water baseboard/radiators, it’s always a good idea to have your furnace or boiler inspected and serviced before the winter months arrive. When you do so, make sure you are hiring an HVAC professional to do the work. If you have forced hot air heat, this is also a good time to have your ducts cleaned. Stocking up on filters so that you can change them monthly is a good idea. If you have not done so already, consider switching to a programmable thermostat, which can add up to big savings once the cold weather hits.
Don’t: You shouldn’t wait until the first cold night to turn on your furnace. That’s when you will actually need it. It’s best to test it prior to needing it. Also, don’t attempt to service your furnace yourself. If the cold weather has arrived and you will be going away for a short time, don’t turn the heating system off. It’s best to just turn it down to a minimum temperature of 50° or so. That way you will ensure that nothing will freeze while you’re gone.
The dangers of winter come in many forms.
Do: Take a walk around the outside of your home. Keep an eye out for cracks in your homes foundation and repair them immediately if found. Also, clean out your gutters and downspouts. This will keep debris from trapping moisture, which can freeze, buildup and damage your gutters, roof and siding.
Don’t: Leaving hoses connected to the outside of the house can cause damage to your plumbing. Make sure that hoses are disconnected and they are drained completely. If you have outside AC units, don’t cover them with plastic as it could cause damage to them over the winter.
Do: Have your chimney inspected and cleaned if necessary. If you don’t have one already, get a cap or screen installed on the top of your chimney to keep out rodents and birds. If you have a fireplace, inspect the damper to make sure it opens and closes properly.
Don’t: Don’t just hire anybody to clean your chimney. Make sure that they are a certified chimney sweep. The Chimney Safety Institute of America (CSIA) has resources available to help you to learn more. Make sure that you do not store your firewood next to the home. This can attract bugs and rodents.
Do: Inspect your windows and doors for gaps. Add weatherstripping and insulation where appropriate. If you have summer screens in your basement windows, replace them with their glass counterparts for the winter. Check your attic for adequate insulation levels and add more as needed.
Don’t: Be careful not to over-insulate your attic. Often, insulation can be packed too tightly, which reduces its R-value. In addition be careful not to clog the vents at the eaves, reducing airflow and resulting in issues down the road.
[The above text is from Christmas Lumber.]
the benefits of weatherization
According to the Oak Ridge Institute for Science and Education, after a home weatherization residents note additional benefits related to health and finances:
Reduced Carbon Monoxide Poisonings
Reduced Home Fires
Reduced Thermal Stress on Occupants
Reduced Asthma-Related Medical Care and Costs
Increased Productivity at Work & Home Due to Improvements in Sleep
Fewer Missed Days at Work
Reduced Use of High Interest, Short-Term Loans
Increased Ability to Afford Prescriptions
Reduced Need for Food Assistance
assistance with weatherization
Contact your energy provider. Many utility companies have websites, newsletters and in-home services to help their customers understand energy consumption and weatherization. Some utilities will even offer an energy audit and provide information for the U.S. Department of Energy Weatherization Assistance Program.
The weatherization assistance program works to help low income households meet their energy and weatherization needs. Click to the Department of Energy Weatherization Assistance webpage to determine eligibility and learn more.
What is Tennessee Weatherization Assistance Program?
“The Weatherization Assistance Program (WAP) is 100 percent federally funded through a grant from the Federal Department of Energy. The program provides funds to states to assist with the weatherization of the homes of low income elderly and disabled adults and families. The program is administered through contracts with an established network of 19 non-profit agencies and local governments experienced in providing weatherization services. WAP services are available in all 95 counties. Applicants must meet low-income eligibility guidelines based on established Federal poverty guidelines. Activities include: insulation, storm windows, caulking, and other related activities to reduce home energy costs and increase home energy efficiency.” [www.tn.gov]
While this information isn’t directly related to Tennessee insurance, the tips and benefits to be gained from weatherization will surely help in the areas of life, health, home and even auto. Now, to apply what I’ve learned and not procrastinate checking on these things until tomorrow…or next summer. Or next winter. Time moves quickly.
Not just for you . . .Long-Term Care Insurance is also for the people who would take care of you without it.
This is a professional blog.
But this is going to get personal.
I haven’t written a blog post since August. I couldn’t find the words in September. Since my dad’s health faltered to a point that he nearly died in the hospital. Since I struggled every day to help my mom find important documents and pertinent information. He was not cognitively aware or able to help. I had to dig through piles of disorganized papers and discovered more than a daughter should know, frankly. I’ll do my best to steer clear of that rabbit hole. It’s not a fun trip and won’t help anyone. This post is about an insurance topic that will affect every reader, in one way or another, if you or someone you love lives long enough.
Immediately following my dad’s hospitalization, my family quickly realized we were out of our depths and contacted a law firm that specializes in elder care. They have been a lifeline for me and I highly recommend consulting with experts early so that you aren’t to the point of drowning before reaching out for help. Perhaps, you have already made your own arrangements so your loved ones don’t have to scramble behind the scenes. Kudos to you. A thousand gold stars. My husband and I are committed to taking the steps necessary so our kids will not be handed the burden of responsibility for our care. Since they are teenagers, that’s hard to imagine, but long-term care requirements don’t only arise with old age.
[A current status report feels necessary to avoid unwarranted suspense. My dad mostly recovered and is receiving home healthcare after a twenty-day stay in a rehab facility last month. His diagnosis remains unclear, however through this experience, I can testify to the importance of having Long-Term Care insurance regardless of an individual’s prognosis.]
At the hospital with my dad.
No one enjoys taking photos during a difficult time. It isn’t fun to experience the first time around, so you don’t relish going down a visual memory lane later. I feel anxious just seeing the bed, the blood pressure cuff, the bland wall, and my dad lying under a thin blanket in a snap off gown like the one I wore when my children were born. I have this one because I like sending selfies to my teenage kids instead of tediously texting an update: “I’m with Pappaw at the hospital. It’s fine. He’s sleeping. Covid regulations in effect so I have to wear a mask.” Not quite 1000 words, but they get the picture. Pun intended.
We transferred my dad to a rehab facility covered by insurance for at least twenty days. An assessment would be made at the three week mark to determine if insurance would continue coverage. We–my mom, sisters and I–did not know the system and an acquaintance recommended we contact an elder care law firm to help us navigate “the game.” We had a preliminary consultation with a lawyer on Thursday, heard he was being discharged on Friday, registered an appeal on Saturday, prayed on Sunday, and brought him home Monday. The physician believed he was well enough to move on and insurance will not pay 100% for further therapy at that point. The aversion to paying out-of-pocket costs made us move quicker than we should have because if he had stayed, then he could have been transported to either assisted living or a nursing home. Since he returned home, he would not be considered at either place without going through hospitalization again. I’m not sure if it’s strictly Covid-19 protocol related, or the open beds are just that scarce. Because he doesn’t have Long-Term Care insurance, his options were extremely limited as those available are extremely expensive.
How does Long-Term Care insurance work?
To buy a long-term care insurance policy, you fill out an application and answer health questions. The insurer may ask to see medical records and interview you by phone or face to face.
You choose the amount of coverage you want. The policies usually cap the amount paid out per day and the amount paid during your lifetime.
Once you’re approved for coverage and the policy is issued, you begin paying premiums.
Under most long-term care policies, you’re eligible for benefits when you can’t do at least two out of six “activities of daily living,” called ADLs, on your own or you suffer from dementia or other cognitive impairment.
The activities of daily living are:
Bathing
Caring for incontinence
Dressing
Eating
Toileting (getting on or off the toilet)
Transferring (getting in or out of a bed or a chair)
A long-term care insurance policy helps cover the costs of that care when you have a chronic medical condition, a disability or a disorder such as Alzheimer’s disease. Most policies will reimburse you for care given in a variety of places, such as:
Your home
A nursing home
An assisted living facility
An adult day care center
Considering long-term care costs is an important part of any long-range financial plan, especially in your 50s and beyond. Waiting until you need care to buy coverage isn’t an option. You won’t qualify for long-term care insurance if you already have a debilitating condition. Most people with long-term care insurance buy it in their mid-50s to mid-60s.
The rates you pay depend on a variety of things, including:
Your age and health: The older you are and the more health problems you have, the more you’ll pay when you buy a policy.
Gender: Women generally pay more than men because they live longer and have a greater chance of making long-term care insurance claims.
Marital status: Premiums are lower for married people than for single people.
Insurance company: Prices for the same amount of coverage will vary among insurance companies. That’s why it’s important to compare quotes from different carriers.
Amount of coverage: You’ll pay more for richer coverage, such as higher limits on the daily and lifetime benefits, cost-of-living adjustments to protect against inflation, shorter elimination periods, and fewer restrictions on the types of care covered.
Tennessee has a higher cost of care than several neighboring states, with nursing homes averaging over $200/day, and as high as $240/day in several cities. The cost in Tennessee for home care and assisted care is approximately half as expensive, but still costly and well above what many could comfortably afford to pay, especially for an extended time period.
According to Tennessee Long Term Care Insurance Consultants, someone turning age 65 today has about a 70 percent chance of needing some type of long-term care during their lifetime. While one-third may never need long term care, 20 percent will need it for longer than 5 years. The average length of time people need long term care services is 3 years.1
In Tennessee, the average cost for 3 years of long term care is $274,299 ($91,433 per year) at 2020 rates. That cost is projected to be $495,414 ($165,138 per year) in 2040.2
And it’s not only seniors that need long-term care. Over 35 percent of people currently receiving long term care services are between 18 and 64.3
1. 2020 U.S. Department of Health and Human Services (www.longtermcare.acl.gov), site accessed 09/30/2021 2. Cost of Care Survey 2020 (Genworth.com), site accessed 09/30/2021 3. Family Caregiver Alliance (www.caregiver.org), site accessed 09/30/2021
The Tennessee Long Term Care Partnership Program is a special Tennessee program combining private long term care insurance with special access to Tennessee’s Medicaid Program (TennCare). The Tennessee Long Term Care Partnership helps Tennesseans prepare for the possibility of needing nursing home care, assisted living care or home care.
A Tennessee Long Term Care Partnership Program policy allows you to keep all, or part of your assets under the Medicaid program, if your long term care needs last longer than the benefits of your Partnership policy. Tennessee Legislature created the Tennessee Long Term Care Partnership under the auspices of several state government agencies.
Tennessee Long Term Care Partnership rates are like other policies. But the mandatory age-related inflation protection can increase the cost of insurance. So we recommend you compare Tennessee Long Term Care Partnership policies with regular LTC insurance. Because, you may find a wider range of choices better suited to your needs. This includes hybrid long term care insurance options not available under the Tennessee Long Term Care Partnership Program.
Happily Ever After – my parents, 1964
The photo above shows two kids, well, young adults at 20 and 23 years old, just married without a care in the world. The groom would be a high school teacher until becoming a licensed life insurance agent a few years later, and the bride would be a stay-at-home mother just a year later (when my oldest sister was born). They couldn’t imagine what the next 55+ years would bring, and despite his training, my insurance salesman father probably couldn’t imagine not having policies in place when he needed them the most. You just never know.
Happy 2021! Look over these 22 questions to review your home and auto insurance for the new year.
Last year brought enough unwelcomed surprises, don’t let home and auto changes negatively affect your insurance coverage. Review the following questions to make sure your policy covers what you need for 2021 and let’s all have a happy, healthy new year!
Have you completed any renovations or additions to your home/property? (Pool, dock, gazebo, deck, fencing, roof or window replacement, other improvements)
Do you have personal property that should be scheduled? (Jewelry, coins, stamps, artwork, collectibles, etc. are limited in coverage on the standard policy – appraisal required.)
Are you interested in learning more about the following protection?
Umbrella Liability (An additional layer of liability over your home & auto policies)
Flood Insurance Business Insurance Life, Health, or Disability Insurance
This list is just the beginning. Review your policy with your agent each year for a thorough check. We’re happy to answer any questions you might have and provide a complimentary review of your home, auto, life, health or commercial insurance policies at Herron-Connell. Give us a call at 865-483-8483.
The first steps of becoming an insurance agent in Tennessee.
Disclaimer: I am not an expert or trained in any way to instruct others. This is purely my experience of studying for and acquiring my licenses in Property, Casualty, Life, Accident & Health this past spring.
I went overboard in my preparation for the licensing exams because I was nervous and had the time to study as much as possible. I am not a fan of multiple choice tests as I tend to second guess my answers, so wanted to learn and build my confidence. If I failed, I knew that I could take the test again but who wants to rely on a redo? Not I. My degree is in English Literature and I’d been a stay-at-home mom for 18 years after a brief career in television production. My dad has been a life insurance salesman for over 50 years, but I can’t say I picked up too much from him and felt that I was truly starting from scratch.
I completed online training through WebCE at home in December and January. The basic program worked well for me. You don’t need the extra stuff they offer (workbook, flash cards, etc.) unless you feel like spending more or you prefer paper to a screen.Speaking of, check for a promo code or a coupon for the course. You can go at your own pace and take unlimited practice tests that simulate the exams. The questions are different, but you’ll get a feel for the wording. Much of it is common sense, so learn the basics, vocabulary terms, and focus on state regulations and specific numbers, such as days and dollar amounts. How much is the penalty for breaking a law, how long do you have to change address after moving, in addition to insurance principles.
The courses are 20 hours, which could be more or less depending on the individual. You may start, save progress and return, so long as you finish within the allotted time period (a matter of weeks). You definitely don’t want to have to pay for the course again, so start when you’ll be able to complete it and then you have three months (I think) to take the official exam after completing the precertification. Taking the test as soon as possible, while everything is fresh in your mind, is ideal. I managed to take all four just before COVID-19 wreaked havoc, thankfully.
I heard the classroom sessions are like watching paint dry, but Kaplan offers that option and you may learn better in that environment or want more human interaction. I found that YouTube videos by a man named Lauren Myers were the most helpful for P&C test preparation, actually. He has a way of cutting through the confusion that sticks with you.
Through whichever program you choose, pass the final exam in each division—in my case, Property, Casualty, Life, Accident & Health—and print the certificate(s). Now you’re ready to register for each test at Pearson Vue Testing Center (or a different location). They combine P & C and Accident/Life so you may take two tests back to back (about 30 minutes/120 questions each). Again, check for a promo or a two-for-one deal. You need to score a 70 or above and they will print the result immediately after: Pass/Fail only. The proctor on my test day tried to “Regis” me and act like he was handing me bad news. Not nice!
You should be prepared for a seriously thorough shakedown upon arrival at the testing center. You aren’t strip-searched, but that’s about where it stops. Pockets are emptied, hairstyles are inspected, glasses are checked, mouths opened, and everything you brought with you goes into a locker. Nothing goes into the room with you except your locker key and a provided pad and dry erase marker that is returned and checked after the test. Don’t even think about going to the restroom or else go through the inspection again. The center tests for all sorts of licenses, not just insurance, so they are discriminating. Everyone is equally suspected of trying to cheat.
An applicant who has committed a felony of the first degree, a capital felony, a felony involving money laundering, fraud, or embezzlement, or a felony directly related to the financial services business is permanently barred from applying for a license.
Once you pass, you must apply with your state’s insurance department and pay the applicable fees. Tennessee has a $50 filing fee for each line. You will need to submit to a background check including fingerprinting and await the decision, which for me, meant receiving my certificate in the mail a couple of weeks later. I knew I had a clean background check, but it’s kind of like passing a police cruiser on the interstate, I felt relieved anyway.
My first day of work!
The following is the official general requirements from the state of Tennessee.
An “Insurance Producer” is a person required to be licensed under the laws of Tennessee to Sell, Solicit or Negotiate insurance.
The applicant is at least eighteen (18) years of age.
Resides in Tennessee.
The applicant is competent, trustworthy, financially responsible, and has a good business reputation.
The applicant is required to pass a written examination and complete a prelicensing course of study thru an approved education provider for each line of insurance for which an insurance license is requested. Such course of study must consist of the following minimum number of hours. Approved education providers can be found at Pearsonvue.com. Lines of Insurance / Number of Hours Life / 20 Accident & Health / 20 Property / 20 Casualty / 20 Title / 20 Personal Lines / 20 Application Procedure
Complete prelicensing education requirements through an approved prelicensing education provider for the line(s) of insurance for which you wish to be licensed (Provider will complete prelicensing certification.)
Schedule your examination with PearsonVue. (Phone: (800) 274-4957) You must present your Prelicensing Education Certificate at the exam site on the day of examination.
Fingerprint based background check is required — see attached instructions.
Pass the required examination. PearsonVue will electronically submit your scores to the department.
Submit your application and filing fee ($50.00) to the TN Department of Commerce and Insurance electronically at http://www.nipr.com OR file the paper Uniform Application. YOU MUST WAIT 48 HOURS FROM TAKING THE EXAMINATION TO SUBMIT YOUR APPLICATION ELECTRONICALLY. Processing time for paper applications is 15 days from receipt in the Agent Licensing Section.
You will be issued a license by the Tennessee Department of Commerce and Insurance once you pass your examination and the Department of Commerce and Insurance is satisfied that you meet all other licensing requirements. THE TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE MAKES THE FINAL DECISION AS TO WHETHER TO LICENSE ANY APPLICANT UNDER TENNESSEE INSURANCE LAW. An insurance producer shall not act as an agent of an insurer unless the insurance producer becomes an appointed agent of that insurer. The appointing insurer shall file within fifteen days from the date the agency contract is executed or the first insurance application is submitted.
Last October 2019, Governor Bill Lee appointed Hodgen Mainda to fill the position left vacant by long-time commissioner, Julie Mix McPeak, who left to work in the public sector in Nashville. Tennessee’s Department of Commerce & Insurance commissioner is appointed by the governor. Most states appoint this post, while ten or so other states elect their state’s commissioner. As we are coming off an election, I got to wondering about this position, so imagine my surprise when I saw the tinge of controversy surrounding the latest appointment and pending resignation.
Hodgen Mainda
Mr. Hodgen submitted his resignation last week and reportedly faces an investigation over allegations of sexual misconduct by one of his department’s employees.
The report of possible sexual harassment was received Sept. 15 and was referred to Lee’s office on Sept. 23.
According to a Department of Commerce and Insurance investigation summary report, there was “insufficient evidence” to substantiate the allegation against Tennessee Department of Commerce and Insurance Commissioner Hodgen Mainda stemming from a February conference in Florida.
Now for a review, just what are the responsibilities of the TDCI Commissioner? In a nutshell, he or she is charged with protecting Tennesseans through balanced oversight of insurance and regulated professions while enhancing consumer advocacy, education, and public safety. The Insurance Division is comprised of seven sections tasked with protecting consumers and ensuring a viable insurance marketplace in the State. This Division regulates and licenses both individuals and corporations, assesses suspicions of fraud, and provides resources to compare various insurance providers for citizens of Tennessee.
As Tennessee’s Commissioner of Commerce and Insurance, Hodgen is the state fire marshal and is responsible for the divisions of insurance, fire prevention, regulatory boards, including twenty-six regulatory entities, TennCare Oversight, and the administratively attached Tennessee Law Enforcement Training Academy, Tennessee Police Officer Standards and Training Commission and Tennessee Emergency Communications Board. In 2018, the department collected $1.145 billion in fees and premium taxes and had expenditures of $220.9 million. [www.tn.gov]
“Today Commissioner Mainda offered his resignation and intent to return to Chattanooga and the private sector,” Ferguson said. “The Governor accepted his resignation.”
Lee’s spokesman Gillum Ferguson
“I have an opportunity to transition to the private sector and at the same time, spend more time with my young family,” Mainda wrote to Lee in his resignation letter on Monday, pledging to make the transition as smooth as possible.
His last day in office is November 13th. Stay tuned for the update when Tennessee’s next Commissioner is announced.
UPDATE from TN.gov—Today Tennessee Governor Bill Lee announced Carter Lawrence will serve in his cabinet as commissioner of the Tennessee Department of Commerce & Insurance, effective immediately.
Carter Lawrence: A lifelong Tennessean and Nashville native, Lawrence earned his Doctor of Jurisprudence and a Master of Business Administration at the University of Tennessee, Knoxville. Prior, he graduated from Wheaton College in Illinois.
Carter is a proven public servant who has stewarded key priorities for the administration throughout his tenure and I’m confident he’ll continue to support TN businesses and consumers with integrity. We appreciate his dedication to @TNCommerceInsur.
Insurance provides peace of mind, even for those worried about alien abduction, but sometimes, if you claim it, you gotta prove it.
I’m sure it’s no surprise to hear that people make some crazy claims to insurance companies and others take out policies for unbelievable coverages. Let’s take a look at a few of the stranger things in the insurance world and how companies might investigate such X-Files.
I recall hearing something about Gene Simmons (from the band KISS) insuring his trademark tongue for millions of dollars in the 70s, and also about Tom Jones insuring his voluptuous chest hair for millions of dollars. Both accounts are cringey, but seem to be true, though no tongues or hairs have reportedly been harmed on either of those fellas.
You can insure just about anything you can put a dollar amount on and where there is a risk of monetary loss to the owner of the policy. While you may think someone else is out of their mind, insurance is partly about peace of mind that allows one to rest a little easier that all may not be lost should tragedy strike. Gene Simmons wore so much make-up, would anyone even recognize him if his serpentine tongue weren’t hanging down past his chin? Did the band’s success truly depend on
iPhone photo taken by me (Katie) at a Panic at the Disco concert with lead singer Brendon Urie playing a piano suspended in air by a cable. Worth the risk?
Brendon Urie’s premium to insure his life and those of his concertgoers must be quite high since he plays a “floating” piano that drifts over his audience. I can’t imagine!
Anything can happen during a concert, festival, or other live event, so it’s important to have liability and property insurance that can handle the unexpected. Large crowds, elaborate sets, and lots of equipment mean risks are ever-present.
from ProSightSpecialty.com
I didn’t mean to get stuck on musicians and concerts; you’re probably wondering what’s with the Parking for Aliens Only sign. One, it’s an attention grabber. Two, policies actually exist for people who are fearful of an alien abduction. A U.K.-based insurer has sold more than 30,000 such policies across Europe. Premiums can cost up to $150 per month for $1.5 million in total coverage, according to projectparanormal.org, which is quite high considering the probability of alien abduction ever occurring. Should one ever make a claim, however, definitive proof is required to collect any damages.
Enter the EUO
An EUO is not related to a UFO, and actually seems scarier to me. The acronym stands for examination under oath and is a formal statement taken by the insured describing the events in the matter of their particular claim. EUOs are typically, although not always, conducted by an attorney representing the insurance company. A court reporter will type every question and answer verbatim, and sometimes a videographer will record the proceedings. Examinations under oath usually last only a few hours, but could possibly extend over multiple days depending on the case. It’s a serious matter.
An insured should anticipate questions about the cause and origin of the loss, the financial condition of the insured leading up to the event (motive), the insured’s whereabouts at the time (opportunity), the nature and extent of the loss, particular items claimed to have been damaged or destroyed, and the accuracy of answers provided in the insurance application. Seeking legal counsel would be a prudent move before undertaking this examination, although an EUO is not part of a court proceeding, anything you say can be used should the claim be taken to litigation and the insurance company may deny the claim based on the results of the investigation.
An insurance company’s authority to take an examination under oath comes from the insurance contract, which typically contains a provision, under the section “Duties of the Insured,” that the insured must answer questions under oath when requested by the insurer. Even without such a provision, there is almost always a “duty of cooperation” provision in the policy which would also require the insured’s participation in an examination under oath. If an insured refuses, it could result in the insurance company’s denial of the claim based on its assertion that the insured breached the insurance policy by refusing to cooperate. See Spears v. Tenn. Farmers Mut. Ins. Co., 300 S.W.3d 671 (Tenn. Ct. App. 2009).
FAQs about EUOs:
Are EUOs always required? Not always. EUOs are often demanded when there are red flags for fraud, strange circumstances, large claims, potential problems with the application for insurance, etc.
What do I need to bring? Bring several documents in support of your claim and be prepared to answer questions about those documents and specific questions about the loss by the attorney.
Do I have to cooperate? Yes. Your insurance policy has a section that provides you, as the insured, have a duty to cooperate with your insurance company’s investigation, including submitting to an examination under oath. However, you may not have to answer every question or provide every document, but it is important to know that you need to cooperate with your insurance company as your failure to do so may result in the denial of your claim.
Do I need an attorney? It would help. An attorney experienced with EUOs can prepare you for the types of questions you will face, assist in the gathering (and presenting) of documentation, streamline and coordinate communication with the insurance company, and assist you in making strategic decisions, all of which can impact whether your claim is paid or denied.
Why am I being investigated? Insurance companies send claims into the examination under oath process for a variety of reasons. Some reasons are serious and legitimate, while others seem to be trivial. You may never know exactly why, but stick to the truth and everything should work out.
The more your boat is worth, the more important insurance becomes to protect yourself from financial loss.
You can’t buy happiness. But you can buy a boat and that’s about the same thing.
Too many sources to credit
In East Tennessee, our lakes are usually crowded with teenagers jet-skiing, fishermen fishing, friends sailing, families cruising and debris floating. After the deluge of rain this past spring, boats and skiers are still dodging flotsam and jetsam throughout the river. Most boaters know that sinking feeling when a propeller wrestles with a log, but did you know that boat protection can help cover the cost of repairs? If you have comprehensive insurance or property damage coverage built into your watercraft policy, your boat insurance will cover collision with rocks, logs, and other marine obstacles.
It’s not like I own a yacht, why would I need a watercraft policy?
The amount of boat insurance you need depends on a number of factors, including the boat’s value, motor size, age, and how it’s used. In general, most professionals recommend buying at least $1,000,000 in liability insurance, with boat insurance ranging anywhere from as little as $75 to as much as $500 per year. For uninsured/underinsured motorists coverage, a typical minimum is $10,000 to cover losses in the event someone without insurance is at fault in an incident on the water. The amount you purchase is flexible and should reflect the potential injuries you may incur if you or one of your passengers is seriously hurt, or your vessel is damaged. For example, a brand new high performance speed boat will need more coverage for bodily injury and property damage liability than a low-risk, slow-moving pontoon.
Boater’s insurance typically covers:
Collision damage: Covers repairs or replacement in the event that your boat is damaged in an accident.
Property damage liability: Should you damage someone else’s boat or property, then this will keep you covered.
Bodily injury liability: In the event that you should injure someone while operating your boat, this helps protect your assets.
Comprehensive: If your boat is stolen, vandalized, or damaged in a non-collision manner, your comprehensive provides compensation.
Men have a tendency to forget their age on the water and take all sorts of risks.
In the event that your boat’s wake causes damage to another watercraft or capsizes another boat, you would be responsible and could be held liable for damages. Don’t be caught off-guard, take out a boat insurance policy.
So, what does my Homeowner’s policy cover?
A home insurance policy provides limited coverage for your boat or watercraft should it be damaged, stolen or vandalized. In most policies, you would only be reimbursed up to $1,000 worth of coverage if your boat, jet ski or miscellaneous water craft is broken or damaged by the following: fire, wind, explosion, hail, theft, vandalism or falling objects. Since homeowner’s policies can have deductibles either greater than or close to $1,000, most claims would not make sense to file.
When it comes to hail damage, there is a peculiar provision in which the watercraft must be in an enclosed building for the damage to qualify. For example, if a hailstorm causes damage to a boat stored outside, you wouldn’t be able to file a homeowners claim in that case. But if the building or storage enclosure has glass that gets shattered and hail comes through that damages your boat, then you would be covered.
Personal Property
If you have items on your boat that are stolen or destroyed, you can likely use your homeowner’s insurance to recoup those losses. For example, your homeowner’s policy would cover your portable Bose speaker, but high-priced modifications and equipment exclusive to your boat should be covered under a boat insurance policy. Therefore, always carefully review the comprehensive coverage of your policy to determine exactly what is and is not covered. You may need to purchase additional riders, or policy endorsements.
Captains and vessels come in all sizes.
If you injure someone or damage property with your watercraft, the homeowner’s liability policy can help cover any associated cost. These policies come with at least $100,000 in liability coverage you can use for legal expenses or restitution to pay the affected party. There are some important size and horsepower limitations when it comes to boats however. Generally the boat needs to be very small, and in no case will your jet ski be covered. To get more robust coverage for your boat or watercraft you should take out a boat or personal water craft (PWC) insurance policy.
Vessel/Motor Type
When is it Covered by Liability Insurance?
Inboard or Inboard-Outdrive
Less than 50 HP
Outboard
Less than 25 HP
Sailboat
Smaller than 26 feet
Jet Skis
Never
Air boats
Never
From valuepenguin.com
Whether you’re spending every day on the water or have your boat in storage for the winter, it’s important to keep your watercraft protected against the unexpected year-round. Coverage is not required by law, with the exception of Arkansas and Utah, but your lien holder and/or marina where you dock may have requirements. An agent can help answer your questions, but you can also learn about the coverage types below:
Watercraft medical payments coverage Helps pay medical costs if you or anyone on your boat is injured in an accident.
Watercraft liability coverage If there’s an accident, this covers the medical and other expenses of whoever was injured as well as the costs of repairing or replacing another person’s boat or property.
Property coverage Covers the damage to your boat if you’re involved in an accident with another boat or something else, like a pier, buoy, dock or debris. It also typically pays for damage caused by something other than a collision, such as theft, fire or vandalism.
Repair cost Covers the repair work done on your boat, motor, equipment or trailer with no deduction for depreciation*.
Emergency services If your boat breaks down, this covers the cost of towing and labor and the cost of delivering fuel, oil or a battery.
Uninsured watercraft coverage If you’re in an accident with an uninsured boater, this helps pay for injuries that you, your family or anyone else on your boat sustains.
Agreed value option When you’re reimbursed for your boat’s value, you’ll be reimbursed for what it was worth at the start of the policy regardless of the current market value.
Personal effect coverage Covers your fishing equipment and other personal belongings if they’re damaged, lost or stolen.
Additional boat equipment Covers boat accessories, like anchors, life jackets and navigation gear, up to the policy limits.
Boat trailer coverage Covers damages to your trailer resulting from an accident or other unforeseen incident.
Herron-Connell Insurance Group is firmly planted and proudly rooted in East Tennessee since 1945.
Picture it–not Sicily, but Oak Ridge, 1945.
The Manhattan Project is no longer top-secret and WWII comes to a victorious end. Honorably discharged from military service, Mr. Herron opens an independent agency with Mr. Connell, aptly named Herron-Connell Insurance.
Same company, fifty years later: Father & son, Steve & Addison Koella, buy the agency and continue the longstanding family tradition of providing personal, commercial, health and life insurance coverage from more than 40 different carriers to the people of Oak Ridge, Anderson, Knox and other counties. Red Williams’ agency joins the family in 2005; O’Kain & Clark in 2015; then Jim Condra & Employee Benefit Solutions of Tennessee come along in 2017.
Herron-Connell Insurance Group is firmly planted and proudly rooted in East Tennessee since 1945.
665 Suite A Emory Valley Road Oak Ridge, Tennessee 37830 865-483-8483
We offer the same digital services as national companies through our website, social media and a new, free app. If technology isn’t your thing or you prefer to sit and discuss options, we are just down the road. We will be socially distancing for a bit longer, so the office is currently closed to the public, but we are here. As Mike said the other day, this is not the new normal. We look forward to returning to the old normal of hugs and handshakes. Meanwhile…
“Prepare the umbrella before it rains.”
a translation of a Malayan proverb: Sediakan payung sebelum hujan.
In Tennessee, we say, “Grab an umbrella just in case. Better safe than sorry.”
That’s what insurance is. You hope for the best and prepare for the worst. We are here to help you every step of the way, through all sorts of weather. We also say, “If you don’t like the weather, wait ten minutes and it’ll change.”
We saved the best for last!
Meet our agents and the heart of Herron-Connell Insurance Group:
From top left: Billie Layfield, Mike Clark, Frannie Hamrick Middle row: Katie Rymer, Steve Koella, Cyndi Jeffers Bottom row: Susan Anderson, Dan Brown and Hugh Neil.
Herron-Connell Insurance GroupHerron-Connell President, Addison Koella, and his wife, Jennifer Koella, CIO.
Crossing T's and Dotting i's 