Possible Consequences of Repealing the Affordable Care Act

Americans reaching 65 become eligible for Medicare. Before reaching that age, some can get retiree coverage from their former employers. But not very many companies, especially small ones, offer medical insurance to retirees. If early retirees are poor enough, they could turn to Medicaid. To retire early, everybody else would need to turn to the individual health insurance market. Without the subsidies and protections the A.C.A. put in place, health care coverage would be more difficult to obtain, cost consumers more where available, and provide fewer benefits than it does today.

That means that if the A.C.A. is repealed, retiring early would become less feasible for many Americans.

This consequence is called job lock — the need to maintain a job to get health insurance. One of the arguments in favor of the A.C.A. was that it would reduce or eliminate job lock. With repeal of the law on the agenda of Congress and President Trump, there is renewed concern about how health insurance could affect employment and retirement decisions.

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Understanding the Importance of Protecting Your Jewelry

With the market for jewelry continuing to grow, it’s more important than ever to protect your valuables and ensure that they can be replaced if they are stolen, lost or misplaced.

Only a small minority of jewelry purchased is insured properly, let alone insured. With a diamond engagement ring costing an average of $5,978, it makes sense to have a way to replace it if lost, stolen or misplaced. Surprisingly enough, a vast majority of jewelry is left uninsured.

Odds are, if something happens to your jewelry, you'll want to be able to replace it. The right insurance can replace your fine jewelry and watches. Some policies will replace a pair of earrings, if only one has been lost, and pay a replacement cost up to 150% of the initial insured amount if the item has increased in value. 

You may think that your homeowner's policy will cover you if your jewelry is stolen, lost, or misplaced, but that may not be the case. Typical homeowner's policies cover jewelry only if it is stolen, not if it is lost or misplaced. Most homeowner's policies have a maximum limit, so if your jewelry costs more than that, you won't be able to replace it with a similar item.

The right insurance policy, specifically for jewelry and other valuables, will provide "all risk" coverage for most causes of loss, with no deductible. Meaning, if you break an item, lose it, can't find it, or it's stolen, you'll receive a benefit immediately up to 150% of its value, so you can purchase another one exactly like you had.

Some insurance companies do not require an appraisal, they just need a good description of the piece, a photograph of the item and an estimated value. That makes getting the right coverage easy. They also provide automatic coverage for newly acquired pieces, so you don't have to worry about getting each new piece on the policy the same day you bought it.

To read more about the importance of protecting your jewelry and other valuables, click here.

Benefits of Health Savings Accounts (HSAs)

As the cost of healthcare in general -- and health insurance specifically -- continues to climb, it's refreshing to find a vehicle that is helping save people money. Health savings accounts (HSAs) are one of the best innovations in health benefits to arrive this century.

The concept behind the HSA is simple, really: It's a tax-advantaged account set up with a trustee that holds money you set aside for the purpose of paying for future medical expenses. Consider the following HSA features and think about whether opening an HSA would benefit you:

1. You save money on insurance premiums

2. Contributions are tax free

3. Qualified distributions are tax free

4. You can keep the money

5. The account stays with you

6. You can make money on your contributions

Read more about the benefits of HSAs here

10 Considerations for the Inspection When Buying a Home

Inspections are among the most important aspects of purchasing a new home. If you don't thoroughly evaluate the abode before signing the contract, you could take on a money pit of sorts - and one that ends up being far more expensive than the agreed-upon sale price.  

Here are 10 tips to help avoid unpleasant surprises with your new home:

1. Inspect the inspector
More likely than not, you're going to bring a professional home inspector in to check out the structure. Bankrate, a consumer financial services company, states that not evaluating the person responsible for the inspection is the top mistake individuals makewhen purchasing or selling a house. You'll need to vet the inspector, ensuring he or she has a strong track record of getting the inspection right. Past that, you'll want to double check to ensure that the inspector is focusing on the areas below.

2. Flood history
Has the home experienced a flood? Even if everything looks clean and functional on the surface, flood damage can remain beneath the surface, potentially hindering the foundation's integrity or promoting the growth of mold. Look into the flood history, and ask for records related to the repairs made. 

3. Drainage problems
HGTV, a home improvement television channel, suggests ensuring the grade slopes away from the house. Many homes will have severe issues with flooding even after tame storms should the grade drain in the direction of the home. 

4. Signs of infestation
A bug problem can be a big headache for a new homeowner. Look for signs of invasive creatures such as bed bugs, ants, termites, cockroaches and the like before finalizing the deal, as these removing pests can be expensive. 

5. Criminal history
It might seem extreme, but some homes have a criminal history that could endanger your family or impact the home's value. For example, was the home ever used to manufacture dangerous drugs? Make sure you get disclosures on any and all criminal activities that took place in the home. 

More Considerations Here

Cybersecurity 'has to be everyone's problem' says former NYPD commissioner

Protect your company against a cyber breach!

To Ray Kelly, current vice chair of K2 Intelligence and the longest-serving police commissioner of the New York Police Department, there are four main catastrophic events that can befall a company: terrorism, conventional crime, natural disasters and political instability. And while some of these are more applicable than others in different industries and in different areas of the world, they all have one common thread.

“Virtually every one of these areas involves cyber,” Kelly said. “Cyber is interwoven into everything that we do, so if you’re hit by a terrorist attack or natural disaster, cyber is going to play a role in some way, shape or form.”

Combating growing cyber risks, Kelly explained, takes a team and a plan. To help with the first stage of the plan — awareness — Kelly will conduct a keynote speech at ALM cyberSecure titled “Security in Today’s Hyper Connected Society” on Sept. 27 in New York. The main takeaway from the speech, Kelly recently told Legaltech News, will be that “cyber has to be everyone’s concern and everyone’s problem.”

Specifically, he noted that the entire management team, ranging from a company’s CIO to its CEO, needs to be involved with a business continuity plan. This business continuity plan is a schematic of how a company can get back in operation if it falls victim to a catastrophic event, and as a necessity, it needs to include cybersecurity. 

Cyber is a mystery

“[Cyber] is this mystery area, and it doesn’t seem to have a day-to-day impact in making money, of the core business of the company, so it’s relegated to someone down in the management chain,” Kelly said. “That to me is a mistake.”

It’s particularly important for the CIO to be involved in any business continuity plan, he noted, because that person would best know what technological resources are needed after a breach.

The CEO, meanwhile, is tasked with making sure cybersecurity is a priority. As Kelly has seen from working with many companies, “If it doesn’t come from the top, chances are it’s not going to be adopted or certainly not going to be interwoven.

And receiving buy-in quickly is imperative in this changing cyber landscape. Not only has each individual threat evolved and become harder to identify in a system, but as the business world has become more globalized, threats can come from anywhere. This means that local law enforcement increasingly needs to work with federal and international agents on cases; it also means that identifying hackers’ profiles is increasingly tough to do.

Click here to read more about sophisticated cyber threats!

Obamacare killing jobs in New York area, executives tell Federal Reserve survey

Obamacare is killing jobs in and around the Big Apple, executives say.

About 20 percent of companies in the New York region say they are cutting their workforce in response to the Affordable Care Act, according to a new Federal Reserve Bank of New York survey.

And most companies said they will be paying more in insurance premiums, and requiring their workers to pay a bigger share of those premiums, as a result of Obamacare.

The survey results come two days after the large health insurer Aetnajoined rivals UnitedHealth Group and Humana in announcing it would significantly cut back the number of geographic areas where it sells Obamacare plans next year due to steep losses on those plans.

The New York Fed survey found that, "roughly 17 percent of service sector firms and 21 percent of manufacturers said they were reducing the number of workers in response to the ACA."

"The vast majority of respondents in both surveys [of manufacturing and service company executives] said they were not changing the proportion of part-time workers or the amount of work outsourced to other firms," said the report, which questioned about 250 executives in New York state, northern New Jersey and Fairfield County, Connecticut.

That point is noteworthy because there had been speculation that companies would cut the number of employees who work 30 or more hours per week to avoid having to offer them health insurance, as Obamacare now requires for firms with 50 or more such workers.

"Most respondents also said wage and salary compensation and other benefits were not being affected by the ACA, though more respondents said they were being cut than raised," the survey said.

"And slightly less than a third of manufacturers and 21 percent of service sector panelists said they were raising the prices they charge to customers." These responses were broadly similar to those in the August 2015 and 2014 surveys.

Roughly 2 in 5 respondents — in both the manufacturing and service sector surveys — said they were not changing their plans in response to the ACA. "Of those that were, however, the most widely reported adjustments involved higher deductibles, increased co-pays and higher out-of-pocket maximums," the survey said.

"The vast majority of firms in both surveys indicated that they would be paying a higher total premium, and somewhat more than half of respondents in both the manufacturing and service sector surveys said they were raising their employees' share of contribution to the premium," the survey found.

When asked about the costs of their current and future health coverage options for workers, the executives' median response among both manufacturers and service firms showed an expectation costs would rise 8.5 percent.

"These increases are somewhat lower than what respondents had anticipated in last August's survey, though it should be emphasized that the pool of respondents is not exactly the same," the report noted. "When firms were asked about the expected change for 2017, the median response in both surveys was for a 10 percent increase."

The survey also said 17 percent of manufacturers and 22 percent of service firms expect the excise tax on high-value health plans — also known as the "Cadillac tax" — would apply to their existing health plans.

The tax imposes a 40 percent surcharge on the value of health plans above a certain dollar amount, and will kick in during 2020. By that year, the threshold is expected to be about $10,900 for plans covering individuals and $29,400 for family plans.

Nearly a third of service sector firms and 37 percent of manufacturers said they weren't sure whether the Cadillac tax will apply to them, according to the Federal Reserve Bank of New York.

Know the unusual risks of owning a pool

The yin and yang of summer are a hot, steamy day and the cool, refreshing water of a swimming pool.

Floating languidly at the local swim club or at a friend's house could cause one to desire a pool of his own, but several insurance considerations should come into play before installing an in-ground attractive nuisance.

Property losses

Many of us first think of the liability issues involved with pool ownership, but pools are also subject to some complicated property losses. For example, in Bozek v. Erie Ins. Group, 46 N.E.3d 362 (Ill. App. 2015), the insured's pool heaved out of the ground.

The pool had been emptied to clean debris, and then three and half inches of rain fell. Because the weight of the water in the pool did not exceed the uplift forces of the water pressure in the soil, the pool lifted upward, damaging it beyond repair and taking out the surrounding concrete slab.

The Bozeks had a Homeowners policy with Erie Insurance Group that provided $89,000 in coverage for damage to the pool. However, when the Bozeks presented a claim to the insurer, Erie denied coverage based on the anticoncurrent causation clause in the policy. The insureds alleged that Erie improperly denied coverage. In the Bozeks’ view, the anticoncurrent causation clause dictated that, because a failure of the pressure-relief valve in this instance (a covered event), preceded the increase in hydrostatic pressure (an excluded event), the loss was covered.

Read About More Risks Here

BMW to be the first major automaker in the future of autonomous vehicles

BMW AG is teaming up with chipmaker Intel Corp. and camera-software company Mobileye NV to bring self-driving cars to the road by 2021, becoming the first major automaker to set a specific date to produce a fully autonomous vehicle.

The technology will be used in theiNext, set to supplant the 7-Series sedan as BMW’s flagship model, the company said Friday. The iNext will be a basis for “fleets of fully autonomous vehicles” to cruise highways and eventually also be available as robo-taxis in cities, BMW said. The platform will be open for other carmakers and technology companies to use.

“Given the players involved, this will likely become the industry standard,” Arndt Ellinghorst, a London-based analyst for Evercore ISI, wrote in an e-mail. “Today could be transformational for individual mobility. Mark your calendar.”

The biggest luxury carmaker setting a date for its self-driving debut will put pressure on rivals including Tesla Motors Inc. and Mercedes-Benz, as manufacturers strive to fend off competition not only within the industry but also from the likes of Uber Technologies Inc. and Google. Robo-taxis will make up 40% of automotive profits by 2030, more than selling vehicles to individuals, according to consulting company Roland Berger.

Read More Here

Are you properly protecting your vacation home?

Vacation homes serve as sanctuaries from the daily stresses of life. And more and more people are investing in them. In 2014, vacation home sales soared to new heights, totaling 1.1 million, according to the National Association of Realtors - nearly 60% more than the previous year.

The question is, are Americans properly protecting their fortresses of solitude? With the median vacation home costing approximately $150,000, these investments are significant.

If you own a vacation home, there are a few things to take into consideration to properly protect it. 

Read More Here.

Consumer tips to keep in mind this summer for home sharing sites

Insurance Commissioner Teresa Miller is offering important consumer tips for both guests and hosts of home sharing sites like Airbnb, as use of these sites may rise in Pennsylvania with the state hosting two major national events, the U.S. Open Golf Tournament and the Democratic National Convention, this summer.

"With thousands of visitors from around the world coming to Pennsylvania for these two major events, homeowners may find an opportunity to rent their homes and attendees may need a place to stay as hotel rooms will fill quickly, leading to much greater use of sites such as Airbnb," Commissioner Miller said.  "While these are great ways for people to make extra money or find a room if hotels are full, both hosts and guests should keep important insurance considerations in mind when using Airbnb or similar sites."

The U.S. Open Golf Tournament will be played at Oakmont Country Club in Oakmont, near Pittsburgh, from June 13-19.  The Democratic National Convention will be in Philadelphia from July 25-28.  Visitors for these events will be in addition to the many thousands who come to Pennsylvania each summer, for events such as Philadelphia's 4th of July celebration, to enjoy the state's great outdoor areas for activities such as fishing, hiking, and boating, as well as to visit historic sites such as Gettysburg.  Erie County's Presque Isle State Park, which attracts up to 4 million visitors annually, in March was voted the country's best freshwater beach in a contest sponsored by USA Today.

Read More Here!

How to prepare as hurricane season approaches

The word is out and the predictions are in as to what we can expect with the 2016 Atlantic hurricane season. By most indications, forecasters say it will be a "near-average" period for hurricane formation.

Now, when you watch an average movie or dine at a mediocre restaurant, it's nothing to write home about. But in the world of hurricanes, an average year is anything but. According to the National Oceanic and Atmospheric Administration, a typical year for hurricanes results in 12 named storms, six being substantial enough to be classified as hurricanes. Furthermore, of the half-dozen that form, three are Category 3 or higher. Cat 3 storms on the Saffir-Simpson Hurricane Wind Scale, by definition, produce between 111 and 129 mile per hour wind gusts, which according to the National Hurricane Center can result in significant damage to buildings and homes. Any storm at or beyond Cat 3 is considered major.

Of course, there's no guarantee that this many named storms will develop over the next six months. However, all it takes is one sizeable storm to wreak havoc, especially if you're a homeowner who didn't take the proper precautions.

Read More Here

Nothing Can Stop the Rio Olympics, Not Even the Zika Virus

Should the Olympics proceed in Rio de Janeiro in August as planned?

With the lighting of the torch set to take place in less than three months, a handful of medical experts are calling for the games to be postponed or moved, citing the risk of globalizing a Zika epidemic that's been mostly limited to the Americas. Amir Attaran, a professor of law and medicine at the University of Ottawa, argued last week in the Harvard Public Health Review that the games “must not proceed.”

Among pregnant women, Zika can trigger severe birth defects that include microcephaly, when babies are born with abnormally small heads. It has also been linked to neurological disorders, including Guillain-Barré Syndrome. Attaran suggested that by August, the epidemic in Rio will be worse than currently predicted.

For Brazil, however, the postponement or cancellation of the Olympics may further destabilize the troubled nation. The country is in its deepest recession on record and consumed by a political crisis with the impeachment trial of President Dilma Rousseff. It is spending almost $10 billion to host the first Olympic Games in South America, money it can ill afford to waste. This is especially the case because it's unlikely that insurers would make anyone associated with the games whole over Zika-induced cancellation claims.

Read More Here

Cleveland & Philly considering "riot insurance" for political conventions this summer

With political conventions shaping up to be more and more like heavyweight wrestling matches, Cleveland has made what may be a smart decision, but undoubtedly an expensive one.

The city's Board of Control, which answers to its mayor, voted unanimously to spend an initial $1.5 million to get "law enforcement professional liability insurance," commonly known as protest or riot insurance, to cover its exposure at the Republican National Convention in July.

But $1.5 million doesn't come close to paying for this coverage. In fact, this amount only covers the expense of hiring insurance broker Aon Risk Services to find the city a policy, which reportedly could cost as much as $10 million. Aon has declined comment, saying it doesn't discuss its clients' affairs.

Is such insurance worth it? New York City, which hosted the 2004 GOP convention, spent 10 years in court wrangling with civil liberties' lawyers who represented protesters who had allegedly been manhandled and pepper-sprayed by police during that convention. The case was ultimately settled in 2014: New York City paid $18 million to the protesters and their lawyers, in addition to $16 million for its own legal fees.

It's unlikely the situation will be better this year, particularly at the GOP convention. Likely nominee Donald Trump had earlier alluded to "riots" if he's denied the nomination, which now doesn't seem at all possible given he's the last Republican candidate left. But increasingly violent anti-Trump protesters are following the billionaire along the campaign trail, notably now in California.

And Trump isn't Cleveland's first and only source of tension. It saw riots after a city police officer was acquitted in the shooting of Tamir Rice, who was playing with a toy gun in a city park. Cleveland wound up paying the Rice family $6 million.

So is the cost of hosting a political convention worth it these days? The host city not only stands to gain exposure but fills up its hotel rooms, restaurants and stores for a week.

But there's a downside. The Republican National Committee won't absorb any of the costs of keeping its conventioneers safe. Cleveland has put aside $2.5 million to pay for the convention in general, and while cities that host political conventions generally get a $50 million federal grant, it's not clear how much can be used to pay for insurance or to reimburse the city's legal expenses if people sue.

Cleveland, which barely managed to balance its 2016 budget with some belt-tightening, will vote on a city income tax increase later this year or next year.

Philadelphia, which hosts the Democratic convention a week after the Republicans meet in Cleveland, won't comment on whether it will take out protest insurance against the possibility of riots. Like Cleveland, Philly is getting a $50 million grant. It says it plans to use the money for "staffing and equipment."

Read more here.

Insurance policies can be a factor in the NFL Draft

Two players who slipped past the first round of the NFL draft on Thursday could benefit from insurance policies they took out while still in college.

Former UCLA linebacker Myles Jack is covered by a $5 million loss-of-value policy. When his mother took it out two years ago, Jack became the first sophomore college football player ever to secure such a policy.

A source with knowledge of the policy says that Jack will start to collect if he falls to the 45th pick in the draft and will get about $60,000 per pick after that. That means Jack will collect north of $1 million if he slips into the third round, but he would have to fall into the early sixth round to collect the entire policy.

As previously reported, former Notre Dame linebacker Jaylon Smith took out an insurance policy in the fall that would pay up to $5 million if he got hurt and slipped in the draft. Smith then seriously injured his knee in the Fiesta Bowl.

A source with knowledge of the policy said that Smith will receive a tax-free $700,000 if he becomes the top pick in the second round. If he is selected later than that, he'll collect an additional $100,000 for each spot he falls.

Last year, Oregon's Ifo Ekpre-Olomu collected the full $3 million afforded by his loss-of-value insurance policy. A projected first-round draft pick, Olomu fell to the seventh round after sustaining a knee injury. It was the largest payout ever from a loss-of-value policy.

If Smith drops below the 55th pick, his payout would pass Ekpre-Olomu's ($3.1 million). Jack would have to fall into the fourth round to get that amount.

Players selected in Thursday's first round will receive between $6 million and $26 million guaranteed.

Read more here.

UnitedHealth to pull the plug on individual Obamacare plans in multiple states

UnitedHealth Group, the nation's largest health insurer, will drop out of government-organized health insurance markets in at least 16 states in 2017 as the U.S. industry leader tries to stem losses from participating in Obamacare, the healthcare overhaul that has brought coverage to millions of people.

UnitedHealth hasn’t listed the markets it’s leaving, and confirmations of the company’s withdrawals have been trickling in from regulators in the 34 states where the company sold plans for this year. The insurer won’t sell individual ACA plans for 2017 in states including Texas, North Carolina and Maryland.

UnitedHealth also is withdrawing from some related state insurance markets for small businesses.

Chief Executive Officer Stephen Hemsley said Tuesday that the company will end up selling Obamacare plans in “only a handful of states” next year. The exchange market is proving to be smaller and riskier than UnitedHealth expected, meaning “we cannot broadly serve it on an effective and sustained basis,” he told investors.

UnitedHealth’s reported state departure are Alabama, Georgia, Missouri, Pennsylvania, Arkansas, Louisiana, Nebraska, Tennessee, Colorado, Maryland, North Carolin,a Texas, Connecticut, Michigan, Oklahoma and Washington.

In the states where UnitedHealth stops offering ACA plans for next year, people who are currently enrolled with the insurer will have to choose a new health plan during open enrollment. Their current coverage isn’t affected.

Volatile Markets

The Patient Protection and Affordable Care Act, President Barack Obama’s signature domestic policy achievement, is projected to cover about 12 million people this year, according to the Congressional Budget Office, providing tax subsidies that help many afford private insurance. The program has proven volatile for health insurers selling coverage in the new markets, known as exchanges, with some reporting losses.

Insuring customers in ACA exchanges has turned out to be more costly than expected. That may be because sicker people are choosing to buy coverage, or because people buying plans deferred treatment for their medical needs until they got covered. Insurers also have said some people are buying insurance, using lots of care, and then dropping their coverage mid-year.

ACA Losses

UnitedHealth, which had about 795,000 ACA customers as of March 31, warned in November that it was posting losses on ACA policies. In December, the company said it should have stayed out of the individual exchange market longer.

The exchanges are a small part of the company’s total medical membership of 47.7 million people. Yet the insurer said Tuesday that it expects to lose about $650 million on ACA plans this year.

Hemsley spoke on a conference call after the company’s release of first-quarter results, which topped analysts’ profit estimates, thanks in part to UnitedHealth’s consulting, technology and services unit, Optum. The stock gained 2.1 percent to $130.50 at the New York close.

The impact of UnitedHealth’s decision to leave the ACA markets will vary by state. In North Carolina, a quarter of consumers will see the number of available Obamacare insurers drop to one for next year, according to an analysis from the Kaiser Family Foundation. Many of the rest will have just two carriers to pick from.

Read more here. 

Five insurance-related things to think about when moving

As spring bursts into full bloom, thousands of homeowners and renters are packing up and moving to a new place they will call home.

The U.S. Census Bureau says that 35.7 million people or 11.5% of the population changed their residences from 2013 to 2014.

Cities saw a net loss of 1.7 million while the suburbs had a net gain of 2.2 million movers. Renters are the most active movers, with 24.5% moving after just a year in their current location. A new job or transfer accounted for 9.7% of the moves.

Young adults are the most active age group on the move, with females aged 18-24 more likely (32%) to change residences than their male counterparts (29.8%).

Texas, Florida and North Carolina had the most newcomers entering their states in 2015, according to Evansville, Ind.-based moving company Atlas Van Lines. Pennsylvania, New York and Illinois lost the greatest number of residents based on 77,705 interstate moves in 2015.

Before you move

Advance planning can definitely make for a smoother moving experience.

Holding a garage sale, donating items to charity or simply throwing them away can help reduce some of the clutter and make it easier to organize contents. Wayne, Pa.-based moving company Transit Systems Inc. recommends making arrangements for utilities such as water, gas, electric, Internet and trash collection several weeks before the move.

In between transferring the cable service, changing the address for your snail mail, and throwing out those belongings that won’t make the move, there are a couple of insurance-related issues to consider.

Here are five to keep in mind as you pack up those boxes:

1. Homeowners' or Renter’s insurance

Most people moving from one home to another know that they will need Homeowners' insurance, but even renters should let their insurer know when they are making a move.

“Make sure you have addressed your Homeowners or Renter’s insurance and have it taken care of before you move in,” says Carrie Bonney, director of media relations for Los Angeles-based Farmers Insurance. “Let your agent know when and where you’re moving and the date so it’s a seamless transition.”

2. Check your car insurance

“Your car insurance could also be affected,” says Bonney of Farmers Insurance. “Let your agent know you’re planning to move and take care of that before you move so you can budget for any changes.”

If you’re moving to a state with lots of weather issues, that could also affect your car insurance says Bonney. Hailstorms, snow and tornadoes are factors that could increase the cost of your coverage.

3. Moving coverage

Check with your insurance agent to see whether you have coverage for your belongings while you’re moving.

Homeowners' and Renter’s insurance may provide coverage during the move in case items are lost or damaged. If you’re using a commercial moving service, read the contract to see what types of coverage are included and the limits involved.  

If you do suffer any damage to your belongings, file a claim with the moving company first.

If the mover denies the claim or offers a settlement you don’t agree with, you have the option of going to arbitration. The American Moving and Storage Association has a program administered by the National Arbitration Forum.

4. Consider creating a home inventory

All homeowners and renters should have an inventory of their belongings.

It’s usually one of those things people know is a good idea, they just don’t get around to it.

Moving is the perfect opportunity to create a detailed inventory, especially since you already have to go through all of your belongings. Bonney recommends walking around your home or apartment and at the very least shooting a video of each room. That way it’s saved to the cloud automatically (in case you lose your phone).

Consider doing the same thing when you arrive at your new destination so there is a record of the items and their location in each room. If you purchase any new items such as a big-screen television or large pieces of furniture, make sure to add them to the inventory. Take a photo of the receipt and the item and save them to the cloud.

Scott Lacourse of Needham, Mass.-based valuation and software company Enservio recommends being thorough and going through the house room by room to ensure that everything is listed. “Take photographs of your contents and write down the date of purchase, price, model, make, serial number and other pertinent information such as size dimensions to go with each item.”

5. After the move

Many times a move is because of a job change, getting married or having a baby.

All of these are reasons to contact your insurance agent to let him or her know about these major life changes. Bonney of Farmers Insurance says you may have an insurance gap or need to change the type of coverage you currently have.

Other moving tips...

Electronics

When it comes to moving electronics, the Alexandria, Va.-based American Moving and Storage Association has several recommendations:

If you don’t have the owner’s manual, draw a diagram or take a photo of the wiring configuration so you can reconnect the various components correctly. Label “inputs” and “outputs” with corresponding colored tape to make it easier to match them again.
Remove discs from any DVD and CD players to prevent damage to them or the component.
Repack electronics in their original boxes if you have them, otherwise use plenty of packing materials to keep the components from moving around.
Make sure to include any remote controls in the same box as the player.
Plasma TVs should be packed and kept upright in a sturdy box or container.
Make sure to back up any information on your computers, remove any CDs from the drives and shut down the computer and monitor before disconnecting them. You also might want to diagram how they are connected to make it easier to reconnect them at the new location.

Pets

Moving can be traumatic for your pets, especially since they may not understand what’s going on.

In all of the chaos, consider moving your pets to an area with their toys, food, water, litter box and other items. This will help keep them safe while you’re moving and packing.

Pets traveling in the car with you should have a special identification tag with their name, your name and cell phone number, and the new home address.

Be aware that some states have laws about the entry of animals, so check to see what health certificates and other requirements are needed.

If a pet needs to be shipped by air, make the necessary arrangements well in advance for delivery and pick-up, as well as boarding if necessary.

When you arrive at your new location, consider keeping your pets inside or leashed until they realize this is their new home.

Read more here.

Human-induced earthquakes now included on U.S. seismic risk maps

Earthquakes caused by human activity will now be included in the U.S. Geological Survey’s seismic risk maps, the agency said on Monday after a sharp rise in temblors linked to wastewater disposal wells used by the oil and gas industry in Oklahoma.

The seismic risk maps are used by emergency management officials as well as the country’s major engineering and design associations to guide how strong to construct buildings.

“By including human-induced events, our assessment of earthquake hazards has significantly increased in parts of the U.S.,” Mark Petersen, chief of the USGS National Seismic Hazard Mapping Project, said in a statement.

Some 7 million people in the Central and Eastern United States live or work in areas threatened by so-called induced seismicity, and in parts of these regions, the damage caused by earthquakes could be at parity with that seen in high-hazard regions of California, the USGS said.

Oklahoma is at the greatest risk for hazards associated with induced seismicity, experiencing 907 magnitude-3.0 or greater earthquakes in 2015, the USGS said, followed by Kansas, Texas, Colorado, New Mexico and Arkansas.

The uptick in quakes has prompted serious concern among locals, particularly those in close proximity to the oil storage hub at Cushing, Oklahoma, which is home to some 66 million barrels of oil and the delivery point for the widely-traded West Texas Intermediate futures contract.

The disposal of saltwater – a natural byproduct of oil and gas drilling – into wells has been tied to earthquakes. Oklahoma regulators have already ordered many wastewater well companies to curb operations.

The USGS said building code committees are still determining whether to include induced earthquakes in their revisions, in part because they could be temporary.

The American Society of Civil Engineers is already in the process of publishing 2016 guidelines that do not take into account man-made earthquakes.

But the group does not anticipate updating those standards again until 2022.

“There is always a delay in design codes adapting the USGS Seismic Hazard Maps,” said Muralee Muraleetharan, a civil engineering professor at the University of Oklahoma.

Read more here. 

The future of the long-term care insurance industry

After years of being battered by low consumer demand, higher-than-expected claims, and low interest rates (which slash investment returns on premiums), the long-term care insurance industry may be peaking its head above the financial foxhole.

Make no mistake, the prospects for the sale of traditional individual long-term care (LTC) insurance policies remain bleak. Last year, the entire industry sold only about 100,000 of these policies, a stunningly low number at a time when more than 8,000 Americans turn 65 each day.  Yet, for the first time in years, industry execs are talking about new products. A few firms are even returning to the market.

At the industry’s annual conference last week, the mood was surprisingly upbeat– though it was hard to miss the gallows humor. One veteran industry observer looked at the surprisingly large crowd and wondered if perhaps it included everyone who purchased a long-term care insurance policy last year.

For insurance companies, aging baby boomers remain an enormous opportunity and a painful tease. On one hand, they are a mouth-watering market of 77 million. Yet, the window for them to buy traditional LTC insurance is rapidly closing.

High premiums and low value

Broadly, the industry continues to struggle to overcome two huge consumer concerns: high premiums and low perceived value, especially for those who may never claim benefits.

Carriers are trying to address these challenges in several ways:

In an effort to hold down premiums, they are finding ways to limit benefits. Most carriers now sell short-term care policies—insurance that pays perhaps $50-a-day for six months or a year. And they are scaling back inflation protection, urging customers to consider 2 or 3 percent annual benefit increases instead of 5 percent.

At least one carrier is looking to bring back lifetime coverage, a product long-since abandoned by the industry because of its huge risk to insurers and consequent high cost to consumers.  But it is targeting middle-market buyers with a limited daily benefit of perhaps $50. Curiously, this product looks a lot like the CLASS Act, the ill-fated 2010 public insurance program the industry strongly opposed.

Insurance companies are also showing renewed interest in group insurance, another product they largely abandoned in recent years. One hope: By encouraging employers to make long-term care insurance part of a standard employee benefit package, they may attract younger buyers for whom annual premiums would be relatively low.

What about creating products where customers can get something back if they die without needing long-term care? Here too, carriers are experimenting. For instance, many offer return-of-premium riders where, for an extra cost, your heirs get your payments back if you die before tapping benefits.

Combo Products

For the past half-dozen years, insurers increasingly have been selling combination products that add an LTC rider to an annuity or whole life insurance policy. With these policies, if you become eligible for the long-term care benefits, you receive additional payments during your life. If not, you still get your regular monthly annuity payments or full death benefit.

In 2015, for the first time, carriers sold about as many of these “combo” products as traditional LTC insurance. Until now, most have been designed as a single-premium—one big upfront payment. But in an effort to attract more middle-income buyers, some carriers are letting consumers spread payments over time.

Combo products remain controversial. Some carriers worry that the potential market is too small. Some consumer advocates argue that combining annuities with LTC insurance creates high-fee products that are too complicated.

Industry execs also expressed interest in the idea of a new public catastrophic insurance program, an idea proposed by several groups in recent months. By covering true catastrophic risk, such a program could create a better environment for private insurers to sell shorter-term policies.

The state of the industry remains precarious. But for the first time in several years, executives were looking to the future with something more than gloom.

Read more here.

Current status of self-driving cars in the U.S.

(Bloomberg) — Existing U.S. laws pose few barriers to adoption of autonomous vehicle technology so long as cars and trucks stick with existing designs allowing humans to take control, the agency overseeing traffic safety said Friday.

It’s only when manufacturers push the envelope by developing vehicles without such things as traditional steering wheels and brake pedals that regulations may block new autonomous technology, according to a report released by the National Highway Traffic Safety Administration.

NHTSA issued the report in a briefing on its efforts to speed the adoption of driverless cars and other technology that assists human operators. It was produced by the John A. Volpe National Transportation Systems Center, which does research for the Transportation Department.

“There are certain designs for which there are relatively few current regulatory obstacles,” Gordon Trowbridge, a spokesman for NHTSA, said at the briefing. “That means that we need operational guidance, model state policy, out there to help guide the operation and deployment of vehicles that may be relatively close to the road.”

State laws

The Volpe study looked at existing federal motor vehicle safety standards and whether those laws will impede the introduction of self-driving technologies. It didn’t examine state laws, which govern driver qualifications, insurance requirements, and other issues. 

In an update to U.S. efforts to promote autonomous vehicle technology, Trowbridge said NHTSA was planning pilot programs across the country to test vehicles, working with states on developing new model laws, and evaluating federal regulations for what changes may be required.

The agency is also hosting two forums in April to gather public input on the issue, one in Washington and another at an undetermined location in California, he said.

‘A revolution’

“We are witnessing a revolution in auto technology that has the potential to save thousands of lives,” Transportation Secretary Anthony Foxx said in a press release Friday. “In order to achieve that potential, we need to establish guidelines for manufacturers that clearly outline how we expect automated vehicles to function — not only safely, but more safely — on our roads.”

President Barack Obama wants to spend $3.9 billion on autonomous vehicle technology over the next 10 years, according to his administration’s proposed 2017 budget.

Adding more automated safety features to cars is one strategy to reduce roadway deaths, Mark Rosekind, NHTSA’s administrator, said Thursday at a safety forum. The technology can help correct for human error, which the agency estimates is a factor in 94% of fatal car crashes, Rosekind said.

Traditional manufacturers and technology upstarts including are rushing to develop more autonomous cars.

Snowy conditions

Daimler AG this year unveiled a new flagship Mercedes-Benz E-Class that can steer itself in auto-pilot mode, brake in emergencies, and evade obstructions. Ford Motor Co. has announced plans to test autonomous vehicles for better reaction to snowy conditions, one of the major technical hurdles.

Tesla Motors Inc.’s chief executive officer, billionaire Elon Musk, says it’s technically feasible that its electric cars will be capable of driving autonomously across the U.S. within two to three years. Google Inc. operates perhaps the best-known fleet of self-driving cars, and Apple Inc. is presumed to be working on its own models.

In February 2014 NHTSA also promised to move forward with regulations that will require cars to be able to communicate with each other to avoid crashes. So-called vehicle-to-vehicle communications may in the future save lives on the scale of earlier safety innovations like seat belts and air bags, the agency said.

Read more here.

Insuring your jewelry

Jewelry is a valuable investment that warrants proper insurance. Americans spend more tha $70 billion a year on jewelry, with engagment rings accounting for roughly 10% of that figure. 

While there is no way to insure the sentimental value of such a gift, having the right amount of insurance will provide financial protection, according to the New York City-based Insurance Information Institute.

"'In the event an expensive piece of jewelry is lost or stolen, the added gift of coverage can help alleviate any monetary woes," said Jeanne M. Salvatore, the I.I.I.'s chief communications officer. "So if you're planning a proposal, consider getting the coverage before presenting the ring."

Jewelry losses are among the most frequent of all homeowners content-related insurance claims.

"In my many conversations with consumers, personal finance bloggers and insurance educators they have noted that the purchase of an engagement ring often triggers interest in getting a renters insurance policy for the first time, as many — especially young — people start to think more seriously about financially protecting themselves," said Salvatore.

Here are four steps that will ensure adequate protection for your new ring, according to the Insurance Information Institute:

1. Contact your insurance professional immediately

Ask your insurance agent if you will need additional insurance.

Most standard Homeowners' and Renters' insurance policies include coverage for personal items such as jewelry; however, many policies limit the dollar amount on jewelry to $1,000 to $2,000. With the average engagement ring costing nearly $6,000, that coverage may not be sufficient.   

Consider purchasing add-ons to your Homeowners' or Renters' policy, which, in most cases, would also cover you for "mysterious disappearance." Purchasing a floater or an endorsement policy when insuring your jewelry means that if your ring falls off your finger and is flushed down a drain, or is lost, you would be financially protected.

And, unlike a Homeowners’ policy, floaters and endorsements carry no deductibles, so there is no out-of-pocket expense to replace the item.

2. Keep your receipt

Forward a copy of your store receipt to your insurer so that your insurance company has a record of the current retail value of the ring then store the original in a safe place.

Consider also getting a copy of the appraised value of the item.

3. If you received an heirloom piece, have it appraised

Get your antique jewelry appraised for its dollar value. Talk to your insurance professional who can recommend a reputable appraiser. 

A good appraisal will give specific details of the stone — such as weight, grade, measurements, diagrams of flaws, any chemical treatments to the stone and a photo of the item. Additionally, the appraisal will identify whether the diamond is synthetic.

4. Add the item to your home inventory

An up-to-date inventory of your personal possessions can help you purchase the correct amount of insurance and speed up the claims process if you have a loss.

Don't yet have an inventory? Celebrate your engagement by creating one with your fiancée.

Taking the time to create an inventory and even adding photographs for special valuable items, is probably the best step policyholders can take to protect their valuable assets. This, in turn, will help facilitate smooth insurance settlements. 

Read more here.