TU The Health Care Law & You and Earthquake Insurance articles Response 1, Drivers are Overwhelmingly Receptive to Usage-Based Auto Insurance, According to
TU The Health Care Law & You and Earthquake Insurance articles Response 1, Drivers are Overwhelmingly Receptive to Usage-Based Auto Insurance, According to Towers Watson Survey
2, understanding Earthquake Insurance
3, The Health Care Law & You: What is the Health Care Law ?
Homework 5 (15 points)
1.In Drivers are Overwhelmingly Receptive to Usage-Based Auto Insurance, According to Towers Watson Survey (Topic 9 Core):
a.If consumers really modify their behavior based on installation of an UBI device, what would this be an example of from a risk management standpoint? (2 points)
b.Why would consumers not want to use UBI programs according to the author? (2 points)
2.In understanding Earthquake Insurance by Heather Turner, (Topic 8 Core):
a.You learn that an earthquake struck Palos Verdes in southern California. It caused several homes to catch fire because gas lines ruptured when sinkholes emerged. Jones house was one of them. His home caught fire from a sinkhole which also swallowed his built in swimming pool and his car. The earthquake damaged a detached garage on his property too. Jones has earthquake insurance and homeowners insurance. The car is insured too.
1.Does any policy cover the fire damage to Jones house? (1.5 points)
2.Does any policy cover the damage to his pool? (1.5 points)
3.Does any policy cover the damage to his car? (1.5 points)
4.Does any policy cover the detached garage? (1.5 points)
3.In The Health Care Law & You: What is the Health Care Law? (Topic 10 Supplemental):
1.How many employeesdoes an employer need to have to be required to offer health insurance benefits? (2 points)
2.What percentage of wellness visits and immunizations must the health plan cover? (2 points)
3.What percentage of a persons income will be assessed as a penalty if the person does not have health insurance after 2014? (1 point). Homework 5 (15 points)
1. In Drivers are Overwhelmingly Receptive to Usage-Based Auto Insurance, According to Towers
Watson Survey (Topic 9 Core):
a. If consumers really modify their behavior based on installation of an UBI device, what would
this be an example of from a risk management standpoint? (2 points)
b. Why would consumers not want to use UBI programs according to the author? (2 points)
2. In understanding Earthquake Insurance by Heather Turner, (Topic 8 Core):
a. You learn that an earthquake struck Palos Verdes in southern California. It caused several
homes to catch fire because gas lines ruptured when sinkholes emerged. Jones house was
one of them. His home caught fire from a sinkhole which also swallowed his built in
swimming pool and his car. The earthquake damaged a detached garage on his property
too. Jones has earthquake insurance and homeowners insurance. The car is insured too.
1. Does any policy cover the fire damage to Jones house? (1.5 points)
2. Does any policy cover the damage to his pool? (1.5 points)
3. Does any policy cover the damage to his car? (1.5 points)
4. Does any policy cover the detached garage? (1.5 points)
3. In The Health Care Law & You: What is the Health Care Law? (Topic 10 Supplemental):
1. How many employeesdoes an employer need to have to be required to offer health
insurance benefits? (2 points)
2. What percentage of wellness visits and immunizations must the health plan cover? (2
points)
3. What percentage of a persons income will be assessed as a penalty if the person does not
have health insurance after 2014? (1 point).
Drivers Are Overwhelmingly Receptive to Usage-Based Auto Insurance,
According to Towers Watson Survey
Consumers reveal what they want from telematics in their car
NEW YORK–(BUSINESS WIRE)– U.S. drivers are predominantly open-minded to purchasing
usage-based auto insurance (UBI) policies, or pay as you drive insurance, according to a new
survey by Towers Watson (NYSE, NASDAQ: TW), a global professional services company.
The survey results are a clear indication that UBI is gaining momentum in the marketplace, with
more consumers willing to let insurers monitor their driving habits with a telematics device in
exchange for potential savings on their car insurance.
Most (79%) respondents to the UBI Consumer Survey indicated they either would buy a UBI
policy or are willing to consider the concept, and if insurers would guarantee drivers premiums
would not rise, that percentage increased to 89%. Interest in UBI programs was highest among
younger drivers (18- to 34-year-olds) with approximately two-thirds (66%) saying they would
definitely or probably purchase a UBI policy. Roughly half (54%) of the participants who drive
every day showed a strong interest in UBI.
Many major auto insurers already offer UBI policies, though consumer adoption has been
slower, said Robin Harbage, global lead for Towers Watsons UBI practice and DriveAbilityTM
service offering. DriveAbility provides a cost-effective way for insurers to go to market with a
UBI product and is the only such program in the marketplace. Consumers are now becoming
more familiar with UBI, and they like what they see. They are beginning to realize their data can
actually be helpful while lowering their monthly premiums. Drivers views on UBI are rapidly
evolving they are embracing the technology and making it part of their driving experience.
The survey looked beyond pricing benefits associated with UBI products to gauge consumers
interest in various value-added services that can be enabled by the technology underlying UBI
devices. Drivers indicated a telling interest in a number of these services, and 72% of those
interested in UBI said they would be willing to pay for them. Drivers showed most interest in
vehicle theft tracking (83%), automated emergency response (82%) and vehicle wellness reports
(79%).
Consumers interest in UBI-related value-added services presents a great opportunity for
insurance companies, said Harbage. Insurers can begin thinking about de-commoditizing their
products by incorporating these services into their UBI offering. They can really cater their
products to the very specific needs of the market, and if done effectively, it will lead to growth
and higher retention levels.
Notably, 60% of those interested in UBI programs said they would be willing to change their
driving behavior. This was highest among younger drivers (76%), who represent the largest risk
segment. When asked how they might change their driving behavior if a UBI device were to be
installed in their car, respondents listed sticking to the speed limit (71%), keeping a safer
distance from other vehicles (52%) and driving more considerately (49%) as the leading
adjustments.
Clearly, there is an appetite for behavioral change features, said Harbage. The next big step for
insurers to capitalize on this knowledge is to better understand consumers driving behaviors so
they can subsequently develop an effective way for delivering timely and relevant feedback to
the insured. This could very well have a big impact on the riskiest driver set, resulting in safer
roads for everyone.
Consumers had the chance to voice their concerns about UBI programs. Their biggest worry had
to do with money, as nearly half (49%) are worried their premiums would increase. Other
concerns related to privacy, such as insurers sharing consumer data (41%), fears that insurers
will monitor and track driving destinations (42%), and apprehensions about insurers using data to
invalidate claims (38%). These are understandable but not material enough to prevent further
UBI adoption. In fact, these concerns actually create possibilities for insurers to design better
UBI products, said Harbage.
About the Survey
The Towers Watson UBI Consumer Survey was conducted between December 2012 and
February 2013. The survey polled 7,645 respondents, including over 1,000 participants from
each of seven countries: France, Germany, Italy, the Netherlands, Spain, the U.K. and the U.S.
Results presented in this article relate to U.S. respondents only.
About Towers Watson
Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that
helps organizations improve performance through effective people, risk and financial
management. The company offers solutions in the areas of benefits, talent management, rewards,
and risk and capital management. Towers Watson has 14,000 associates around the world and is
located on the web at towerswatson.com.
Towers Watson
Josh Wozman, +1 703-258-7670
josh.wozman@towerswatson.com
or
Binoli Savani, +1 703-258-7648
binoli.savani@towerswatson.com
Source: Towers Watson
Copyright Business Wire 2013
Understanding earthquake insurance
Nearly 90% of Californians are without earthquake insurance. Here’s what it will and will not
cover.
By Heather Turner, National Underwriter, July 10, 2019
Over the Fourth of July holiday weekend, a series of earthquakes hit near the southern California town
of Ridgecrest, approximately 150 miles south of Los Angeles.
CNN reported the 6.4-magnitude earthquake on Thursday and 7.1 earthquake on Friday led to gas leaks,
building fires and water main breaks. While the damage caused was relatively minimal due to the areas
sparse population, the state remains on high alert, remarked Morgan Stanley in a press release, as
officials warn a 27% chance of a magnitude 6 or higher earthquake occurring again within the next
week.
Insuring against earthquakes
In a state known for its earthquakes, its surprising that only about 11% of homeowners and just under
10% of commercial buildings in California are covered by an earthquake insurance policy, such as a
policy managed by the California Earthquake Authority (CEA), said Morgan Stanley.
Standard insurance policies, such as homeowners or renters, do not cover damages caused from
earthquakes or other natural disasters.
An earthquake insurance policy will, however, cover some of the losses and damage that an
earthquake can cause. Basic earthquake coverage will cover a home (up to a limit), personal belongings
such as furniture and TVs, and it will also cover temporary and extra costs to live somewhere else while
an area is evacuated or while repairs are underway.
What does earthquake insurance not cover?
Even for homeowners and business owners with earthquake insurance, there are four main exclusions
the policy will not cover, according to the California Department of Insurance:
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Fire: Earthquake insurance usually does not cover anything that a homeowners policy already
covers. For example, if a homeowners policy covers fire damage, even if an earthquake causes
the fire, then earthquake insurance will not cover it.
Land: Earthquake insurance does not cover damage to land, such as sinkholes. However,
additional coverage may be available to restore or stabilize land. Also, most policies do not
cover landscaping, pools, fences, masonry or separate buildings.
Vehicles: Earthquake insurance does not cover damage to vehicles.
Flood: Earthquake insurance does not cover water damage from outside a home, such as sewer
or drain back-up, flood or tsunami. A flood insurance policy will cover these damages.
https://www.propertycasualty360.com/2019/07/10/earthquake-insurance-what-does-itcover/?kw=Understanding%20earthquake%20insurance&utm_source=email&utm_medium=enl&utm_c
ampaign=riskmanagementreport&utm_content=20190723&utm_term=pc360
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The Health Care Law + You | What is the health care law?
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What is the health care law?
Lets be clear: The health care law is confusing. We know you have questions. Were here with the answers. The law may change the way you buy a health
plan, which benefits you receive, and how much you pay. But one fact isnt changing: health insurance is one of the most important things you can do to keep
you and your family healthy.
The Basics >
The Coverage Levels >
The Protections >
The Essential Benefits >
The Basics
Health insurance, primarily through its coverage of preventive care services, helps you protect your health and well-being. It also limits your risk of paying for
very expensive health care services.
Explore our Health Care Reform Timeline.
Heres how health insurance works for most people: You choose a plan based on the cost of the plan and services it covers. For most plans, you will pay a
premium to your health insurance company. This is a fixed amount you pay each month. You also may pay each time you get care from a doctor or hospital,
have a prescription filled, or get some type of medical care. These payments are frequently referred to as cost-sharing. How much you pay, and when you pay
these fees, varies depending on your health plan.
With health care reform, this model will still exist. However, many things about health insurance are changing. Here are some of the changes that are taking
place as part of the new health care law:
People will be required to have health insurance.
Health plans offered to people who purchase health insurance on their own and those that get benefits from an employer with 50 or fewer employees
must include 10 core benefits, known as essential health benefits.
Many single people and working families may receive assistance from the government to help pay their health care coverage costs. This includes many
people who the government does not help now.
Many state Medical Assistance programs, also known as Medicaid, are expanding by offering health plans to more people who are uninsured.*
There will also be a new way to buy health insurance: the Health Insurance Marketplace.
Rates for individual and small group plans (50 or fewer employees) will be based on who will be covered under the health plan, their age, where they
live, whether they smoke, and the health plan selected.
* At this time, the Commonwealth of Pennsylvania has decided not to expand Medicaid coverage. If this changes, it will affect eligibility for Medicaid and tax
credits/subsidies.
For a quick and easy-to-follow breakdown of the health care law, check out our infographic:
The health care law requires that you have health insurance beginning January 1, 2014. You can shop for health plans from Independence Blue Cross on
www.ibx4you.com or through the government-run Health Insurance Marketplace. In order to have coverage for January 1, 2014, you must purchase your plan
by December 15, 2013. Employers with 51 or more employees will be required to offer health care coverage to all full-time employees or the employer may
have to pay a shared responsibility payment to the federal government. People that are not offered or do not qualify for an employer-sponsored benefit program
will be required to purchase insurance on their own. Most people will pay a penalty to the government if they do not have a health plan; in 2014, that penalty
will either be $95 or 1% of your taxable income (whichever is greater).
Remember, while the new law impacts all of us, your coverage may not be affected if you have health insurance through your employer. To get more
information, visit www.healthcare.gov.
The Protections
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The health care law has several protections built in to help you and your family:
You cant be denied coverage so you dont have to worry about being able to get health insurance if you have an expensive medical condition.
Your health plan can only be cancelled if you commit fraud or dont pay your bill.
All plans must cover 10 core benefits, or essential health benefits, and many preventive care services will be covered 100 percent.
There are no annual or lifetime limits on the amount your health insurer will pay for essential health benefits.
The Coverage Levels
The health care law creates four benefit levels of coverage or metallic tiers based on how much of the cost is covered. The tiers bronze, silver, gold, and
platinum are designed to make it easy to compare different health insurance plans. All plans contain the same core health benefits like doctor visits,
prescription drugs, X-rays, and hospital stays, but will differ in what you pay when you need these services, as well as the monthly premium.
How the metal tiers compare on costs:
Independence Blue Cross, along with the government-run Marketplace, will have tools to help you determine which plan provides the ideal coverage level and
premium cost based on your needs.
The Essential Health Benefits
As a key part of the law, all small group and individual health plans must offer a core set of essential health benefits starting in 2014:
Preventive, wellness, and disease management services
Emergency care
Ambulatory services
Hospitalization
Maternity and newborn services
Pediatric services, including dental and vision
Prescription drugs
Laboratory services
Mental health, behavioral health, and substance abuse services
Rehabilitation and habilitation services
There are no lifetime limits on the amount your health plan spends on these essential health benefits services for you and your family. In addition, insurers will
cover 100 percent of the cost of many preventive services, such as wellness visits, immunizations, and screenings for cancer and other diseases when you use
an in-network provider. That means you will not pay any deductible, copayments, or co-insurance for many preventive services that can help you stay healthy.
For more details on the essential health benefits, see Page 10 of our Health Care Law & You guide.
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how it affects you.
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© 2013 Independence Blue Cross
Independence Blue Cross is an independent licensee of the Blue Cross and Blue Shield Association.
The health care website is provided for your convenience and does not represent legal and/or tax advice. If you have any questions regarding
your particular situation or obligations, please consult with your legal or tax advisor.
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