Applying for insurance through postpaid plan – Here’s what we think

MANILA, Philippines — Say it’s been an auspicious year and you receive a mid-year bonus. Immediately your hands itch at the notion of tapping “checkout” from your favorite online shopping app, or you make haste to the nearest mall, having mentally readied your wish list, just in time for a mid-year sale.

A new pair of kicks to satisfy your sneakerhead obsession? That new gaming console—on sale, plus freebies? Or maybe, a new set of wardrobe to complement your style?

The struggle is all the more real. But something makes you stop and think.


As a young working Filipino, you are reminded of your priorities, like providing for the family, or fulfilling more important personal needs. One of which, as you’ve ubiquitously heard time and time again, is getting insurance.

However, you still end up having reservations regarding requirements and hefty costs.

Worry no more, this we can say with confidence. We found the answer in BIMA, the newest player in microinsurance, which Philstar.com had the experience of understanding firsthand.

A safe and trusted Swedish insurance company, we learned that BIMA is now in the Philippines to offer affordable insurance tailored for the needs of young Filipino professionals.

Of its current offerings, we highly recommend the Bundle Insurance Protection product that comes with P360,000 Personal Accident Protection and P40,000 Life Protection. Available for a minimum premium of only P300 a month, it can easily be added on-top of your monthly bills and expenses.


Another exciting thing about BIMA is that one can apply—more like subscribe—to its offerings via a postpaid plan, which this author tried.

Without the need to meet with traditional insurance agents, BIMA really understands its young target market who are always busy and on the go.

Easy, no-fuss processing

Based on our experience, here’s what you’ll simply need to do:

First, submit your postpaid mobile number to their website and get in touch with a BIMA representative. What’s great is that there are no health checks nor paperwork required, all that’s needed is an eligible postpaid mobile account.

Then, the representative calls your mobile phone. After confirming submission of the postpaid mobile number, the representative proceeds to ask for basic information such as name, date of birth, location (no need for full address, just the city or province will do), and one choice of beneficiary.

After this, the representative guides you in activating the insurance policy by sending a text message to BIMA (Key in “BIMA300” and send to 2462). Within moments, you will receive the confirmation message.

Once the representative has ascertained receipt of the confirmation message, a digital copy of your BIMA Policy Card is sent to your email summarizing the details of the insurance policy, which simply means you’re all set!

Do note that BIMA’s insurance offers are only available to subscribers of Smart Communications, but will soon become available to other telco subscribers such as Sun Cellular and Globe Telecom.

Benefits that we loved

Aside from ease and convenience, we also discovered BIMA’s slew of benefits. With an affordable monthly premium to pay on a rolling basis, you instantly get a coverage of up to P400,000 on your BIMA Insurance.

Much like traditional insurance, it sufficiently covers death or permanent disability due to accident, illness and natural causes.

What’s even better is that on top of the bundled insurance coverage, BIMA is offering a limited-time free P100,000 coverage on the first month.

You can all the more rest easy knowing that you get proper security and insurance for you and your family, especially since you’re basically paying only P10 a day for protection.

There’s one last thing that we loved with BIMA. Since your postpaid is subscribed to the insurance plan, your monthly payment will be charged to your account. This takes off the burden of going to payment centers or banks just to settle your monthly premium.

Additionally, BIMA’s insurance products are renewable monthly. It is a month-to-month basis insurance that you can quit anytime, if you so choose. All you have to do is key in “BIMA300 OFF” and send to 2462.

Processing of claims too is fast and simple, with only 10 working days of claim approval after validation.

So why choose BIMA?

With the emergence of affordable insurance, no one can be without a safe place to land their feet in dire situations.

Given its affordability, ease and benefits, BIMA is a strong microinsurance that’s apt for Filipinos looking for no-nonsense protection. It certainly lives up to its purpose of “protecting the future of every family” wherever they may be.

source: philstar.com

Wells Fargo admits deception in $1.2 billion US mortgage accord

Wells Fargo & Co (WFC.N) admitted to deceiving the U.S. government into insuring thousands of risky mortgages, as it formally reached a record $1.2 billion settlement of a U.S. Department of Justice lawsuit.

The settlement with Wells Fargo, the largest U.S. mortgage lender and third-largest U.S. bank by assets, was filed on Friday in Manhattan federal court. It also resolves claims against Kurt Lofrano, a former Wells Fargo vice president.

According to the settlement, Wells Fargo "admits, acknowledges, and accepts responsibility" for having from 2001 to 2008 falsely certified that many of its home loans qualified for Federal Housing Administration insurance.

The San Francisco-based lender also admitted to having from 2002 to 2010 failed to file timely reports on several thousand loans that had material defects or were badly underwritten, a process that Lofrano was responsible for supervising.

According to the Justice Department, the shortfalls led to substantial losses for taxpayers when the FHA was forced to pay insurance claims as defective loans soured.

Several lenders, including Bank of America Corp (BAC.N), Citigroup Inc (C.N), Deutsche Bank AG (DBKGn.DE) and JPMorgan Chase & Co (JPM.N), previously settled similar federal lawsuits.

But Wells Fargo held out, and its payment is the largest in FHA history over loan origination violations.
Friday's settlement is a reproach for "years of reckless underwriting" at Wells Fargo, U.S. Attorney Preet Bharara in Manhattan said in a statement.

"While Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust," Bharara added.

The accord also resolved a probe by federal prosecutors in California of alleged false loan certifications by American Mortgage Network LLC, which Wells Fargo bought in 2009.

No one has been criminally charged in the probes, and the Justice Department reserved the right to pursue criminal charges if it wishes, according to the settlement.

Franklin Codel, president of Wells Fargo Home Lending, in a statement said the settlement "allows us to put the legal process behind us, and to focus our resources and energy on what we do best -- serving the needs of the nation's homeowners."

Lewis Liman, a lawyer for Lofrano, did not immediately respond to requests for comment.

Wells Fargo on Feb. 3 said the settlement would reduce its previously reported 2015 profit by $134 million, to account for extra legal expenses.

source: interaksyon.com

Sell Structured Settlement Annuity

Do you have a structured settlement annuity that you are looking to receive cash for right now? Well the experts here at Cash For Settlement Payments may be just the answer you are looking for. We are able to help you with your transfer and if you absolutely would like a loan against your settlement payment rights then we are glad to help facilitate that as well. What we do is we set you up with a court date so that you can let the judge in your jurisdiction know that you are looking to cash in your settlement payments because of the following typical reasons: 





    * The money can be better used else where in a lump sum situation

    * You or your family is facing a hardship and prefer to liquidate the investment holding in exchange for
        the money to save your family

    * To help make mortgage or house payments (many annuitants use the money to purchase a home)

    *  Ease the trouble of everyday life

No matter what the reason it needs to be sound and approved so please speak with us about your reason and need for money and we will work with you to help you out right away. You can contact us via email or we prefer that you call and speak to us. We would love to come and meet you in person and work with you for getting the settlement transfer done as we build a strong relationship with all of our clients.

source: cashforsettlementpayments.com

Obamacare covers married gay couples under family plan

WASHINGTON -- Married gay couples will be eligible for a family health policy under President Barack Obama's healthcare reform law, beginning in 2015, the US government said on Friday, encouraging insurers to begin offering coverage this year.

The Department of Health and Human Services also announced it would extend for one month a temporary program that offers insurance to some of the sickest Americans, who have had trouble finding private plans in new health insurance marketplaces set up in all 50 states under Obamacare.

Friday's announcements add to the series of delays and modifications the administration has made to the Patient Protection and Affordable Care Act, commonly called Obamacare, since the law was enacted in 2010 and formally launched last October.

Obamacare's six-month enrollment period ends March 31. And with volume expected to surge in the final two weeks, officials say the website HealthCare.gov continues to operate smoothly after technical problems in October and November paralyzed the portal for consumers in 36 states.

The remaining 14 states run their own markets.

About 4.2 million people have enrolled in private Obamacare health plans so far, and millions more have been found eligible for the Medicaid program for the poor, according to the administration.

It continues, however, to wrestle with complicated and controversial issues related to the law.

In its decision on gay couples, HHS exercised federal authority to prevent discriminatory insurance market practices on an issue that has been caught up in state marriage laws.

The move follows a February lawsuit filed by an Ohio gay couple, who were unable to obtain family coverage under Obamacare, they said, because their state does not recognize same-sex marriage.

The gay community is a key constituency for Democrats, who are facing a Republican onslaught over Obamacare in this year's midterm elections for control of Congress.

"If an insurance company offers coverage to opposite-sex spouses, it cannot choose to deny that coverage to same-sex spouses," Dr. Matthew Heinz, who heads HHS outreach to lesbian, gay, bisexual and transsexual communities, said in a posting to a government website.

"In other words, insurance companies will not be permitted to discriminate against married same-sex couples when offering coverage. This will further enhance access to health care for all Americans, including those with same-sex spouses."

A formal clarification from the Centers for Medicare and Medicaid Services, the lead Obamacare agency within HHS, said the administration is encouraging insurers to voluntarily implement the non-discrimination policy for the 2014 coverage year under the Public Health Service Act.

Compliance will be required starting in 2015.

"We expect issuers to come into full compliance with the regulations as clarified in this guidance no later than for plan or policy years beginning on or after January 1, 2015," CMS said.

"We also expect states to begin enforcing the regulations in accordance with this clarification no later than for plan or policy years beginning on or after January 1, 2015," it said.

Administration officials said the gay marriage decision and extension of the program for people with pre-existing conditions, known as the Pre-Existing Condition Insurance Plan, were both intended to help Americans transition to the new healthcare era established by Obamacare.

The law requires most Americans to pay a penalty unless they are enrolled in insurance coverage by March 31, which is also when the PCIP program was set to expire.

Patient advocates welcomed the move, saying people with cancer, multiple sclerosis or other serious disorders need time to find insurance plans that meet complicated healthcare needs.

"We encourage patients in PCIP to look at other insurance options, including the health insurance marketplace at HealthCare.gov, as soon as possible so they are assured of coverage beyond the short term," the American Cancer Society Cancer Action Network said in a statement.

The extension came a day after US Health and Human Services Secretary Kathleen Sebelius told lawmakers in Congress that the enrollment deadline would not be delayed.

Administration officials said the PCIP program was being extended through April 30, under congressional authorization that has already allowed for two other extensions. PCIP was originally intended to expire at the end of 2013, but was extended first through January and later through March.

source: interaksyon.com

Philrealty sells insurance arm

MANILA—Philippine Realty and Holdings Corp (Philrealty) has relinquished control of its insurance subsidiary to a group of private investors.

In a disclosure to the Philippine Stock Exchange, Philrealty said it inked a deal for the sale of its 70 percent stake in Meridian Assurance Corp for P191 million.

The transaction, which covers the sale of 1.75 million shares at P109.14 apiece, is subject to approval by the Insurance Commission.

A regulatory filing show Philrealty owns 86.66 percent of Meridian, a medium-sized non-life insurance company, underwriting fire, marine, and casualty and surety undertakings including miscellaneous lines of insurance.

Aside from its head office in Pasig, Merdian maintains offices in the key cities of Cebu and Davao.

The insurance firm's net underwriting income fell to P17.12 million in the first six months of last year from P17.81 million in the same period in 2012 due to lesser bookings. Philrealty took over Meridian in August 1994 from the Lozano-Ramirez group.

In March, Philrealty inked a deal with its major shareholder Greenhills Properties for the development of a 6,400-square meter lot in Bonifacio Global City. Total project cost will reach P5 billion.

Philrealty had said it would break ground on the project by middle of the year at the earliest to convert the land into a prime mixed-use development that will feature retail, residential, office, serviced apartments, and a hotel.

Philrealty is the company behind the Philippine Stock Exchange Center and the Alexandra mid-rise luxury condominiums in Ortigas Center, Pasig City. It is building the Andrea North condominium development in New Manila, Quezon City.

Two years ago, the Quezon City Regional Trial Court denied the petition of Philrealty to exit from rehabilitation.

Philrealty stopped payments of its liabilities at the height of the Asian financial crisis of the late 1990s.

source: interaksyon.com

Do You Spend Too Much on Insurance Each Month?

Most people overpay for their insurance coverage. It’s unfortunate, but insurance agents aren’t always motivated to save you money. They’re motivated to sell you more insurance. Because of this, you might end up with riders you don’t need, insurance coverage that doesn’t make sense, deductibles that are too low, and an insurer who has the split responsibility of pleasing you and outside shareholders. Here’s how to save money without sacrificing coverage:  












Unnecessary Riders

Most agents have riders that they love to sell people. It’s sort of a “personal favorite” of the agent – but you may not need them. A rider is a modification to the basic policy. It modifies the policy to include some type of coverage not normally found in the basic contract.

While some riders could be beneficial, many aren’t. Take accidental death riders for example. These pay only when you die as a result of an accident. Seems reasonable, right? There’s just one problem: the odds of you dying from an accident, by definition, are low. It’s an accident.

Moreover, even if you do become injured in an accident, a coroner may rule that you’ve died from “complications” like internal bleeding instead of the accident itself. You may survive the accident, but die due to an infection you receive in the hospital (i.e. a C.Diff infection – which is common in hospitals).

If you have ordinary life insurance, you probably don’t need the accidental death coverage offered on some auto policies.

Another problem is that you may have riders that just don’t make sense given where you live. This is especially troublesome on homeowner’s policies. For example, earthquake insurance is probably necessary if you live in California. If you live in North Dakota, however, you probably don’t need it.



Low Deductibles

Many agents try to make things easier for you by selling you on a $200 deductible. It’s low – sometimes too low. You can dramatically lower your premium by raising your deductible as high as the insurer will allow and saving the difference. Once you have enough to meet your monthly deductible amount, you can allocate that savings any way you wish.

Only raise your deductible if you plan on building up a savings to cover your higher out of pocket costs.



The Mutual Advantage

Most agents don’t advertise it, but mutual insurers are usually able to offer you a better net premium than stock companies? Why? Because mutual insurers pay dividends to policyholders. For homeowner’s insurance, this means that the insurer will refund part or all of your premium through a dividend payment if and when dividends are paid by the company.

With life insurance, your policy can grow substantially over time with the addition of dividend-funded premiums and dividend-funded additional paid-up life insurance death benefit.

Mutual insurers cannot guarantee that they will pay a dividend every year. That’s why it’s important to look at the historical dividend payments made by the company. Historical performance won’t tell you about future performance, but it will tell you the track record of the company. It’ll allow you to make a decision based on the probability of a dividend being paid in the future.

Most mutual insurers have a solid track record of paying dividends every year.



You’re Paying For Insurance On The Land

One small, little, mistake can cost you thousands on your homeowner’s insurance. When you’re having your home assessed, it’s common to include the land value in the assessment. When you give this figure to the insurer, it prices your policy accordingly. However, while a flood, earthquake, or fire might damage your property, it’s not the end of the world. You really should just be concerned about the replacement value of any structures on your property (i.e. your home, garages, etc.).

Most insurers don’t even cover landscaping, so if the value of your home includes the land, you might be paying for coverage that you’ll never see any benefit from. Have your home reassessed so that you get just the home value. Turn this figure into your insurer and watch your premium drop like a stone.

Louis Winter is a personal finance expert. He frequently writes some of his best tips on money saving blogs. To learn more click AutoInsuranceQuotes.com.

source: 20smoney.com

So You Think Auto Insurance Is Expensive? Here’s The Cost Of Not Having It!

Many drivers bemoan the fact that they have to pay for auto insurance. While it may not be ideal to pay for something you may never use, and while there are affordable auto insurance options in the market, what are the costs of not having auto insurance? Let’s take a look at what expenses you could be facing if you were ever in an accident or caused damage with your vehicle while not carrying auto insurance.  








1) You Will Pay For The Damage To Your Car

Your insurance company typically pays for the damage done to your car and any other car involved in a crash that you cause. If you don’t have insurance, you will pay for damages that could easily exceed $10,000 depending on how many cars were involved in the accident.

2) You Will Pay Medical Bills For Anyone Hurt In A Crash

Standard minimum insurance policies pay for a good chunk of any costs related to bodily injury following a crash. You could be on the hook for hospital bills as well as funeral costs if you kill somebody in your car. A stay at the hospital for someone without medical care could easily cost $50,000 or more.

3) You May Be Liable For Replacing Personal Property

Say a laptop was damaged in an accident that you caused. You will have to pay to replace that laptop because you are the one who caused it to be broken. While it may only cost you $500 to replace it, that is a cost you can easily avoid with a basic insurance policy.

4) You Will Be Fined For Not Having Insurance

You will be fined for not having proof of insurance. The amount of the fine varies depending on what state you live in. However, you can expect to pay at least $100 or more.

5) Your Car Will Be Impounded If You Are Caught Driving Without Insurance

Some states will impound your car if you are caught driving without insurance. Expect to pay at least $75 a night or more depending on where you live and how long your car is impounded for.

6) You Will Pay For Your Own Attorney To Defend Yourself Against Legal Action

Your insurance policy may cover legal representation if you have to go to court. Unfortunately, you will be paying for this yourself if you don’t have auto insurance. You could be paying as much as $150 an hour for a good lawyer.

7) You Will Pay For Your Own Rental Car While Your Car Is In The Shop

A rental car is going to be necessary while your car is in the shop. That could cost you as much as $100 a day or more. If you had insurance, your costs would be covered for up to 30 days.

8) You Will Pay For Any Real Property Destroyed In A Car Accident

What happens if you destroy a house or tear up a yard in a car accident? The answer is that you will pay for the cost to repair the damage. That will cost you several hundreds or thousands of dollars.

Paying for auto insurance may seem like a drag. However, you are going to bankrupt yourself rather quickly if you get into an accident during a time in which you don’t have coverage. The lesson is that you should buy a good policy and be thankful that you have it if you ever need it.

source: 20smoney.com

Insurance issue settlement allows NBA players to suit up for Russia in EuroBasket

MOSCOW -– Concerns over whether the Russian Basketball Federation would be able to cover insurance costs for three NBA players headed to the European championship in September have been resolved, national team general manager Fyodor Voropaev told R-Sport Sunday.

The participation of Alexey Shved, Timofey Mozgov, and Sergey Karasev had been in jeopardy after their NBA clubs requested the federation pay extra insurance on top of FIBA’s mandatory coverage, Voropaev said.

“At the request of some of the players’ clubs and agents we’ve drawn up and will pay extra insurance,” he said.

He said he lobbied the federation for a minimum 20,000 euros (US$ 26,500) for each player. Brooklyn Nets forward Andrei Kirilenko, the national team’s only other NBA player, will not suit up.

Shved, a 6-foot-6 guard, played 77 games with the Minnesota Timberwolves last season. Karasev, 19, was the 19th overall pick by the Cleveland Cavaliers at the NBA draft in June.

Mozgov, a back-up center with the Denver Nuggets, has a history of ankle injuries, including one suffered in a 2012 Olympic qualifying tournament that sidelined him from training before the London 2012 Games. He re-signed with the Nuggets on Saturday for a reported three years.

NBA clubs often encourage their players – or outright bar them – from playing in international competition over fear of injury. The European championship, also known as EuroBasket, is particularly distressing as it occurs about a month before the NBA preseason opens.

EuroBasket, the qualifier for the 2014 FIBA World Championship, runs Sept. 4-22 in Slovenia.

source: interaksyon.com

Here’s Why Stay-At-Home Parents Need Life Insurance

Just because you’re a stay-at-home parent and don’t bring home the bacon doesn’t mean you don’t need to have life insurance. Whether you give yourself the title of household babysitter, cook, housekeeper or chauffeur, the services you provide could cost a lot for your family if you were to pass away.

Household Expenses

Of course, you can’t be replaced, but someone can be hired to help keep the family functioning as best as possible under tough circumstances. A life insurance policy can help with childcare. According to the National Association of Child Care Resource and Referral Agencies (NACCRA), full-time infant care costs an average of $16,000 a year, and after school care averages $11,000 per child on an annual basis. If you have a spouse who works at night or travels, the costs for child care can even be higher. If you’re uncertain how much of an insurance policy to take out, some financial gurus today recommend a $400,000 to $500,000 life insurance policy to make up the costs. With the lump sum that your family receives from the proceeds of your policy, your family will be able to maintain their lifestyle.

Ongoing Financial Obligations

The proceeds from the life insurance policy will also help avoid forced debt. Like most families, you probably have a mortgage, car loans and other rolling expenses. A stay-at-home parent with life insurance can help ease the burden of the surviving spouse with having to pay these ongoing expenses in the event of your death. Having access to money in a timely fashion with a life insurance policy will certainly help avoid financial stress at a tough time when the family is grieving your loss.

Children’s College Education

A life insurance policy can also help pay for your children’s college education. Keep in mind that if you have young children, the price tag of a college education is likely to be much higher when your child reaches college age than today’s tuition costs. According to the College Board, public college tuition in 2015 will average $26,000 a year and is expected to increase to $35,000 by 2020.

Funeral Expenses

Today, the average funeral costs range about $10,000. Having a life insurance policy will ensure that your loved ones are not saddled with this expense. When making funeral arrangements, the last thing a family needs is to be worrying about how to pay for it. Financial stress will just add another burden for them.


Even if you’re not a stay-at-home parent, life insurance is important for every family. Everyone’s lifestyle and personal circumstances are different, and it’s important to select the right kind of life insurance that best meets your unique needs. Today, it’s easy to find the best rates for life insurance online. You can do a search and compare rates at industry insurance sites. Getting life insurance will give you the peace of mind that you need knowing that your family will be taken care of if anything should happen to you.

source: marriedwithdebt.com

How Much Life Insurance Does a Stay-at-Home Parent Need?

Generally, financial gurus recommend that you get 5-20 times your annual income in life insurance coverage. But what if you have no income because you’re a full-time stay-at-home parent? Or what if you contribute a few hundred bucks a year to the family bank account with your side job while you mostly stay home with the kids?

We all know that anything times zero is zero, but that doesn’t mean that a stay-at-home parent should not have life insurance.

In fact, as a stay-at-home parent, you make hugely valuable contributions to your household, contributions that would cost your family a pretty penny should something happen to you.

According to a recent Salary.com survey, the services of a stay-at-home mom in 2012 (sorry, dads, you weren’t part of the survey this time) would cost about $113,000 if you had to outsource those services. The survey looked at the services provided by a typical homemaker, including housekeeper, child care, chauffeur and more. If you had to outsource all those services, you’d pay a lot to do it.

But does that mean that a stay-at-home parent needs more than $1 million in life insurance? Probably not.

The truth is that in single-parent households, not all of these services are outsourced. Yes, if something happened to you, your spouse would have to pay for day care and would probably like to pay for extra services like housekeeping. But plenty of working single parents clean the house, make the lunches, plan the doctor’s appointments, run to school and soccer practice, and work.

The Goal is Something In Between

 

While your stay-at-home parent services are invaluable for your family, you don’t want to wind up with more life insurance than you can afford. So when you’re deciding how much term life insurance coverage to buy for yourself, you’ll have to do some personal calculations and some hard thinking.

Here’s one process for deciding how much life insurance to carry on the stay-at-home parent in your family:

First, talk about what life would look like if that parent died. No one likes to think about this possibility, but to make good life insurance decisions you must.Which services would the surviving spouse need or want to outsource? Look into the cost of full-time child care in your area and include that in your calculations.You may also want to check out things such as housekeeping services.

Remember to look at the ways a stay-at-home parent saves your family money, as well. For instance, many stay-at-home moms are able to shave hundreds off the monthly grocery bill by meal planning, couponing and cooking at home. If something happened to this parent, the family’s food costs could go up quite a bit.

Also look into counseling services. If something happens to your children’s primary caregiver, chances are they’ll need some professional help to cope in a healthy way. How much would some basic grief counseling or therapy cost your family?

Again, it’s not fun to think about these possibilities, but it’s essential to choosing the right amount of life insurance for a stay-at-home parent.

Second, research how much life insurance coverage would cost. Term life insurance rates are typically low. But if you’re a one-income family living on a tight budget, you may not be able to afford much coverage. On the other hand, if rates are very low, you might be able to afford the luxury of more coverage.

The key is to make sure you can pay for it, even if you get into a tight place financially. Not paying your premiums can result in a termination of coverage, which is not a place you want to find yourself.

Finally, choose how much coverage you want. Your best bet is to apply through a broker, so you can get the best deal on the amount of coverage you need. It’s also easy to get life insurance quotes online.

Having the right type of life insurance coverage for both parents in a family can give you peace of mind, knowing that you’re protecting your family, and especially your children, in the worst possible circumstances. If one partner in your family stays at home with the kids, figuring up life insurance can be more complicated, because you can’t just multiply your annual income. But taking the time to figure out how much life insurance the stay-at-home parent needs is an important step in making sure your family is well protected.

source: doughroller.net

Former AIG chief exec, Philam Life in talks for non-life partnership

MANILA - The former CEO of American International Group (AIG) and the Philippine American Life and General Insurance Co (Philam Life) are eyeing a possible tie-up in the area of non-life insurance in the country.

Rex A. Mendoza, Philam Life president and chief executive, said former AIG chief executive Maurice Raymond “Hank” Greenberg was recently in the country for exploratory talks.

Greenberg is the president, chairman and chief executive of C.V. Starr & Co. Inc. (C.V. Starr), which has been scouting for possible investments in Manila, possibly a non-life insurance firm.

Mendoza said Philam Life cannot give up its non-life unit to the Starr Group.

"It is a composite license so we will have to partner. Because the capitalization is with us so we have to comply with the capitalization requirements," Mendoza told reporters today.

"It should be a partnership between his Starr Group of Companies and us but that is a decision that is made in Hong Kong, not here," Mendoza said, adding that the tie-up makes sense because they do not have not much of a non-life operation.

He said a partnership with the Starr Group may not pose any conflict since Philam Life has already cut off ties with AIG when the Philippine insurer was absorbed by AIA Group Ltd.

AIG spun off AIA when the former was selling assets to get itself out of debt at the height of the subprime crisis of 2008-2009. Mendoza said this makes AIA "completely" out of the control of AIG, the local non-life unit of which is Chartis.

"So we're not related in any way anymore. We can partner," he aid.

On top of this, the possible partnership with the Starr Group would be seamless as Greenberg is no stranegr to Philam Life, Mendoza said.

"The Philippines is very close to his heart. He knows the people here. In fact he was telling me he was in a hotel, a lot of people took pictures with him. He knows that the Philippines is a place he is known and well respected," Mendoza said.

Given a choice between China and the Philippines, Greenberg would opt for the latter since it is the relationship, rather than finances, that matter, Mendoza said.

Eyeing National Life

Mendoza couldn't say if Philam Life is moving to acquire beleaguered National Life Insurance Co.

He, however, said Philam "is in very good position" and that it is "capable" of strategic acquisitions.

Last November, National Life faced liquidation unless it infused P100 million into the company.  It needed to inject P404 million in the next four years, with the first tranche made in October 2011, but missed making the second capital infusion. To meet the government's minimum paid-up capital for insurance firms, National Life must put in P200 million in the next two years.

It has about P800-million worth of debts with BDO Unibank Inc, Philippine Business Bank, and three non-bank firms.

source: interaksyon.com

NEDA backs changes in Insurance Code

MANILA, Philippines - The National Economic and Development Authority (NEDA) is backing the passage into law of amendments to Presidential Decree (PD) 612 otherwise known as the 1974 Insurance Code of the Philippines.

 In its just-released Socio-Economic Report (SER) 2010-2012, NEDA said the Insurance Commission (IC) with the cooperation of the private sector introduced amendments to the Code to enhance regulatory policies and procedures that will be in accordance to global best practices.

“The challenge is how to fasttrack the approval of the bill(s),” it said.

The amendments not only bring the country’s insurance industry up to global standards, but also gives the regulator more teeth in dealing with judicial harassment by delinquent industry players.

Institutionalizing the amendments to the outdated Code will strengthen the code of good corporate governance introduced by the IC through a system of “scorecards to determine levels and quality of compliance.”

Delays in the passage of the proposed amendments will result in delays in implementing reforms for the industry, which among others could mean missed opportunities for the industry that offers protection, savings and investments for the insured and uninsured population.





Meanwhile, the SER noted the capital build up program of government to boost underwriting capacities, improve insurance services, and prepare for the Asean regional integration.

It noted that the minimum paid up capital required was P250 million for 2012. These will be increased further in a build up program “to make the industry more competitive in time for the Asean Economic Community come 2015.”

Concerns were likewise raised regarding the expanded regulatory scope of the IC, after the transfer of regulatory and supervisory functions of the pre-need industry from the Securities and Exchange Commission (SEC) to the IC.

At the start of 2012, 21 pre-need firms were issued working licenses. But the commission also inherited 30 insolvent pre-need companies that were in different stages of conservation, rehabilitation or liquidation.

Last month, the IC revealed that it was also managing 32 life, non-life and mutual benefit associations that are likewise in various stages of conservations, rehabilitation and liquidation.

Meanwhile, NEDA welcomed efforts by the IC to establish a catastrophe insurance model as a means for disaster risk reduction and financing, knowing fully well that the Philippines is one of the worst affected by typhoons and floods.

“The immediate objective is to be able to set up a catastrophe pool for residential buildings and small and medium enterprises (SMEs) in view of the high vulnerability of the country to catastrophic risks,” NEDA said.

That situation is aggravated by the fact that the Philippine has one of the lowest insurance coverage especially the low-income and informal settlers.

Insurance coverage of all types reaches only 20 percent of the country’s population, with the majority through government pension funds such as the Social Security System (SSS) and the Government Service and Insurance System (GSIS).

Private insurance firms only account for four to six percent of the insured public.

To speed up protecting the public, the Department of Finance (DOF), the IC and several foreign and local entities formulated the National Strategy on Microinsurance, and the Regulatory Framework for Microinsurance. It is complimented by the Roadmap to Financial Literacy on Microinsurance.

Government has also implemented the OFW Compulsory Insurance Coverage Program for agency-hired migrant workers, according to NEDA.

 To date, nine participating life and non-life insurance companies had covered 483,306 agency-hired migrant workers. And a total of 1,669 migrant workers have filed claims against their respective policies, of which a total of P39.5 million in benefits have been paid.

source: philstar.com

Top 4 Tips to Cut Health Insurance Costs

Health insurance has been seen more of a necessity than a luxury to many individuals and households in recent years. There are clear benefits to private healthcare and as it has become more common place prices and deals are a lot lower making private health care available to a wider spectrum of society.  If you are thinking of taking out health insurance for yourself, your partner or your family, there are a few guidelines that, if followed will help you obtain the best deal possible for your situation.

Customise your Coverage – Always make sure you are getting exactly what you need from your coverage. Many people don’t realise they are paying over the odds for aspects of their policy that are surplus to their needs. Many policies allow you to pick and choose exactly what you need releasing you from expensive yet redundant clauses. If the company you are with does not offer this, it may be worth having a look around for a policy that does.

Compare your Choices – Make sure to use all of the free tools out there that assist you in comparison of private health insurance.

Reassess your needs annually – Many people fail to reassess their policy on a regular basis.  It really is a mistake to be complacent when there could be better deals out there.  Premiums generally increase annually on 1 April, so it is a good idea to look around in advance of this date.

Haggle – If you do choose to cancel your current policy in lieu of a better deal online, make sure you ring up your current provider to cancel instead of taking the offer to cancel online. This may seem like a more laboured option but many insurance companies are eager to keep their customers, and may offer you a better deal. Because of this the ball will then be in your court. Explain to them the deal you have found elsewhere and see if they are willing to match or even beat it, saving you even more on your premiums.

source: everythingfinanceblog.com

Insurers win respite from govt-ordered capital hike

MANILA - Insurers have won a respite from a government order for them to hike their capital by P250 million by the end of this year.

A Quezon City Regional Trial Court has ordered Finance Secretary Cesar V. Purisima to stop implementing a Department Order No. 15-2012, which requires insurance companies to gradually increase their capital to P1 billion by 2020.

Issued by Branch 80 of the QC court, the ruling also stops the Department of Finance from requiring all insurers to hike their capital to P250 million this year.  Failure to comply with the DOF order would have led to the revocation of an insurer's license.

The Philippine Insurers and Reinsurers Association (PIRA) earlier held a dialogue with Purisima to stave off the capital hike, which is meant to protect the public from unscrupulous insurance firms that renege on their contracts. The DOF however turned down the insurers' request, forcing them to go to court.

PIRA members had argued that the P1 billion paid-up capital requirement was “too high” for companies that sell only P300 million worth of risk cover.

source: interaksyon.com

Remember to Update Insurance Riders

When was the last time you did a home inventory? What about updating any policy riders? If you’re like me, it’s been a while. We keep our home inventory up to date when it comes to the big items (mostly because we don’t buy that many big items) but I haven’t updated our jewelry riders since we got them four years ago.

Normally, this isn’t that big of an issue but the price of precious metals have skyrocketed in recent years because of a variety of economic factors.


Ten years ago, gold was $300 an ounce. It’s over five times that today (and it was even more a year ago). If you have an insurance rider on your jewelry, like we do on my lovely wife’s engagement ring, the stated value of that jewelry is probably out of date. Compared to ten years ago, any piece of gold jewelry is worth at least five times more now than ten years ago because the price of the yellow stuff has gone up. As for diamonds, they’re forever and they too have gotten pricier (unless you believe this story about Russia finding a huge diamond deposit).

If you haven’t updated it in a few years, take the piece to an appraiser to find out its exact value today. Getting jewelry appraised will cost you a few bucks but it’s a part of the insurance process. Few insurers will issue a rider without one (the ones who are willing to… you probably don’t want to work with them). It’s not good to have outdated insurance policies… it’s about as good as not having the policies at all.

source: bargaineering.com

Insurance for College Students

College kids show up at school with a lot more than a big bag full of T-shirts and jeans. They also bring a slew of electronics—computers, printers, smart phones, iPads—that can be expensive to replace. Your homeowners insurance will generally cover students’ possessions if they live in a dorm, and it may provide coverage if they’re in an off-campus apartment, as long as their primary residence is still your home. The rules vary a lot by insurer; most require your child to be a full-time student and under age 24.

Some insurers cap the coverage at college at 10% of the possessions limit on your homeowners policy. So if you have a $200,000 policy on your home with 50% of that amount, or $100,000, for contents, your kid’s coverage at college may be limited to $10,000. The liability limits are usually the same as for you (see Check Up on Your Home Insurance).

If your insurer doesn’t cover your child’s off-campus apartment, or if you’d like higher coverage limits, consider a renters insurance policy. That generally costs just $150 to $200 per year, says Melanie Loiselle-Mongeon, an independent agent in Pawtucket, R.I. If your kid has roommates (who aren’t related), each person needs to get a separate renters policy.

Car insurance. Contact your insurer if your kid goes to a college more than 100 miles away and doesn’t take a car. Your premiums can drop significantly (20% on average at Safeco, for example), but he or she will still have coverage when home for the summer or vacations. If your child takes a car to school, your insurance costs will rise or fall depending on the location.

Health coverage. Student health plans, which often cost hundreds of dollars each semester, may have exclusions and low coverage caps, or they may require you to get most health care through the student medical center. Children can usually be covered under their parents’ health insurance policy until age 26, so most families can rely on that insurance when their kid goes to college. (You may have to decline the college’s student coverage to avoid being charged.)

However, if you have insurance through a regional HMO with a small network of doctors and hospitals, coverage may be limited to emergency services if your student goes to college in another state. And even if your plan allows for out-of-network care, you’ll probably have to make much larger co-payments if the network doesn’t extend to the area where the college is located. Insurers with national plans, such as Cigna, typically have plenty of doctors and hospitals in-network around the country. “The best course of action is to request a summary of benefits for the new location,” says Kelly Brooke, of Cigna.

If no in-network providers are nearby, consider an individual health insurance policy. In most states, a healthy person in his or her early twenties can get coverage for $150 or less per month. You can get price quotes at eHealthInsurance.com or find out about local policies at HealthCare.gov.

By buying a high-deductible policy, you can keep premiums low and still have coverage for major emergencies (most plans must also provide some preventive-care benefits without co-payments or deductibles). If your child has a policy with a deductible of at least $1,200 and isn’t claimed as a dependent on your tax return, then he or she can make tax-deductible contributions to a health savings account that can grow tax-free for future medical expenses.

source: kiplinger.com

Help! My Health Insurer won’t Pay the Bill!

My Health Insurer is Not Paying the Bill

I am willing to bet that many of you have encountered a situation where you noticed an error in your medical bill, but your health insurer delays in fixing it and paying the remainder of the bill.

I am encountering my first such scenario. I’ve learned some important lessons, but the situation is still not resolved. So I thought I’d share what I’ve learned and then turn over the advice giving to those of you who have been down this road.

I’ll follow up with the end results in a later post.

Long story short:

1. This year, I switched from a traditional PPO, to a high deductible health plan (HDHP) through Cigna, in order to save money on our health insurance.

2. My wife and I both wanted to take advantage of a $200 HDHP bonus incentive for showing up for an annual physical, which is a preventative service and 100% covered by the HDHP. We did so, the appointment was paid for, no problem, and we later received $400 in bonuses in our health savings account (HSA).

3. At the appointment, the doctor scheduled routine preventative blood work for both of us. There was no suspicion of illness.

4. We get our blood work done, and later get bills for the full amount. Mine was $153 and my wife’s was $459, much to our shock!

5. After a few months, numerous interactions in which the Cigna told us we need to call our doctor because they did not use “preventative” CPT codes (doctor says they did, and really have no incentive to make that up). However, I am able to get them to pay all but $16 of mine and $120 of my wife’s.

6. $136 is better than $612, but I’m pretty damn determined. If everything is truly “preventative”, I shouldn’t have to pay anything at all. I don’t care that the payment would come from funds contributed by my employer to my HSA! It’s about principle. By this time, one of the bill’s has a threat of upcoming collections on it – which gets me even more fired up. I call Cigna back, and this time, did what I should have done in the first place – received a confirmation # on the case and the rep’s name. He tells me they will re-submit the claim.

7. I awaited their verdict on the re-submission.

8. Once again, Cigna comes back with the “non-preventative CPT codes” argument.

Lessons learned thus far:


document everything
get a case confirmation # right away
get the name/number/extension/email of the rep.  you call, to help instill a bit of accountability on their end to resolve things
triple check every medical bill you receive to make sure it is correct


 Medical Bill Apathy

This whole situation has been very frustrating and makes me wonder how many people simply give up on medical bills or don’t realize there is an error in the first place. My determination has already prevented a loss of $476, however, I won’t stop until they pay the full $612.

If they stall again, however, I’m out of ideas on how to make that happen.

Your Advice on Getting the Health Insurer to Pay the Medical Bill

Have you been in a similar situation where the insurer seems to be lagging on paying the bills? How did you get things resolved?
Have you tried bringing in a third party to help you resolve the billing dispute? Did it work?

 source: 20somethingfinance.com

 

 

 

 

New York Mortgage Trial Could Have Broad Impact on Wall Street

NEW YORK (Reuters) - A Michigan bank accused of misstating the quality of home loans it repackaged into mortgage-backed securities is set to go to trial on Wednesday, in a case that could affect pending lawsuits against some of Wall Street's biggest firms.

The lawsuit against Flagstar Bancorp Inc of Troy, Michigan, is one of the first to go to trial over claims that a lender misrepresented loans pooled into mortgage-backed offerings. 

Flagstar was sued in 2011 by bond insurer Assured Guaranty Ltd, which had guaranteed $900 million of securities and was on the hook to pay investors when the investment plummeted in value in the housing market meltdown. 

While Assured is seeking only $108 million in its breach-of-contract case -- a relatively small sum in financial industry litigation -- Wall Street will be watching the Manhattan federal court trial closely. Assured has also sued UBS AG, Credit Suisse Group AG, Deutsche Bank AG and JPMorgan Chase & Co over similar allegations. 

Leading up to the lawsuit, Assured had demanded Flagstar repurchase some of the loans, and Flagstar refused, according to the insurer's complaint. Flagstar has countered that Assured is a sophisticated party that extensively reviewed the securities before agreeing to insure them. 

During a September 5 insurance industry conference hosted by brokerage firm Keefe, Bruyette & Woods, Assured Chief Executive Dominic Frederico referred to the potential impact of a "big win" in the Flagstar case. 

The other defendants "will all of a sudden get really interested in getting a settlement achieved," he said. 

Ashweeta Durani, a spokeswoman for Assured, and Susan Bergesen, a spokeswoman for Flagstar, declined to comment for this story. 

FIRST TO TRIAL 

The Flagstar lawsuit is one of many cases over mortgage practices when the housing market was booming. 

In February, Flagstar agreed to a $132.8 million settlement to resolve civil fraud claims by the U.S. Department of Justice that the bank had improperly approved thousands of home mortgages for government insurance. 

The Justice Department on Tuesday sued Wells Fargo, also on allegations of falsely certifying mortgages that were federally insured. 

In another case, the New York attorney general sued JPMorgan earlier this month over the quality of the loans in mortgage securities sold by Bear Stearns. 

Other bond insurers, including MBIA Inc and Ambac Financial Group Inc, have also brought lawsuits similar to Assured's over repackaged mortgages. One of the biggest pending cases is MBIA's $3 billion lawsuit against Bank of America Corp's Countrywide Financial unit in New York State Supreme Court. A trial date in that case has not been set. 

The Flagstar case has progressed swiftly to trial thanks in part to the presiding judge, Jed Rakoff, who is known for trying to get cases to move along quickly. A settlement is still possible ahead of the trial, but neither side would comment on whether any settlement discussions were underway. 

Rakoff, who is hearing the case without a jury, is well known in the financial industry. He is the same judge who last year rejected Citigroup Inc's $285 million settlement with the U.S. Securities and Exchange Commission over the sale of toxic mortgage debt. He criticized the SEC for allowing the bank to settle without admitting or denying the allegations. 

The Flagstar trial is expected to focus heavily on why certain loans were included in mortgage-backed securities, an issue at the heart of the lawsuits brought by the bond insurers. 

The question is whether lenders misrepresented details of the loans, such as homeowners' credit scores and their debt-to-income ratios, painting a false picture of the default risks of mortgages underlying the securities. The insurers point to underwriting guidelines that required all the loans in the securities to meet standards. 

Assured has accused Flagstar of falsely representing the quality and characteristics of loans packaged into two offerings issued in 2005 and 2006. An analysis of 800 loans found 610 instances of misrepresentations, according to Assured's lawsuit. 

The trial could also test bond insurers' ability to recover damages using evidence from so-called "statistical sampling." Insurers say they should be able to rely on a sample of the multitude of loans underlying a mortgage pool, rather than have to go loan by loan to prove their case as the defendants have sought. 

Flagstar has denied misrepresenting the loans, and has said Assured's case is based on "faulty statistical hypotheses." 

The case is Assured Guaranty Municipal Corp v Flagstar Bank, FSB in U.S. District Court for the Southern District of New York, No. 11-2375 

source: nytimes.com

Insurance service guarantees ticket refunds for shows missed due to emergency

“The Phantom of the Opera” is a once in a lifetime musical that you just have to see at the CCP. David Benoit is one of the top jazz pianists in the world who will perform at the Resort’s World Manila on October 3.

Suppose you bought yourself a pair of pricey tickets to either of these shows and were unable to attend due to unforeseen circumstances like bad weather, floods, or personal emergencies such as sickness or injury. Money down the drain, right?

Not anymore. You could miss that show you due to an emergency and still get your money back through a new insurance service for concert and show tickets.

Chartis Philippines Insurance Inc. and TicketWorld have introduced Ticket Protect – the new insurance solution that would grant the ticket holder 100 percent reimbursement for the unused ticket.

With Ticket Protect, an additional minimal cost assures the ticket holder a money-back guarantee in case of sickness, injury, a family member’s death, natural catastrophe, automobile breakdown or even a sudden or unexpected business trip.

Ticket Protect covers all tickets bought either online or over the counter at accredited TicketWorld outlets regardless of the price.

“Chartis has been a leader in insurance service innovations, serving more than 70 million customers around the globe. Ticket Protect is our newest insurance solution in response to our customer’s ever changing needs,” said Anton Du Plessis, president of Chartis Philippines.

“For just a fraction of the ticket cost, the holder is assured that he/she just missed the performance, not the money spent.”

The Philippines is the second country in the Asia-Pacific region to use Ticket Protect after the service’s favorable outcome in Thailand.

The Chartis-TicketWorld collaboration is brokered by Jardine Lloyd Thompson (JLT) Insurance Brokers, Inc. Ticket Protect is “ideal for highly priced tickets,” JLT Insurance president Graham Edwards noted.

The Philippines has been a mecca for big names in the international entertainment industry ranging from concerts, shows, plays and big-ticket sports events.

TicketWorld president Bob Sewell said that more international performers are coming to the country.

Ticket Protect may be availed in these current and upcoming theater productions: “The King and I” at Resorts World Manila, “Walang Kukurap” at the CCP, “Bona” starring Eugene Domingo at PETA Center, Disney’s “Camp Rock” at On Stage Greenbelt, “Peter Pan”, “Hansel and Gretel” and “Romeo and Juliet” all at Star Theater and “San Pedro Calungsod The Musical” at PETA Center.

Concerts for October covered by the service are: Jim Paredes at Resort’s World Manila, Christian Bautista’s “XClass” at the Meralco Theater, “Rock Legends: Bobby Kimball and Kenny Cetera” at Edsa Shangri-La Hotel, and David Benoit at Resort’s World Manila.

To know more about Ticket Protect, visit www.ticketworld.com.ph or call the Chartis Customer Hotline at 8135000 for claims inquiries.

source: interaksyon.com

ING may sell $1 billion Hong Kong insurance unit in separate deal

HONG KONG — ING is exploring a separate sale of its roughly $1 billion Hong Kong insurance business, sources said, a move that could further complicate the auction of its Asian operations.

The Dutch insurer is selling its Asia divisions to repay a 2008 government bailout. It failed to secure a single buyer for the entire Asian group, valued at about $7 billion. As a result, ING decided to split the auction into three pieces – Japan, South Korea and Southeast Asia.

The Hong Kong business was originally lumped in with Southeast Asia, together with Malaysia and Thailand. But with the Southeast Asia sale making slow progress due to foreign ownership restrictions, ING is keen to expedite parts of the nearly six-month old process.

The sources, who declined to be identified as the discussions are confidential, cautioned that ING has not made a final decision.

"Divestment may take place through multiple transactions," an ING spokeswoman said.

While selling Hong Kong separately may extend the auction process for the Asia business, it could allow ING to extract better value from a buyer focused just on that specific market, sources said.

A successful Hong Kong sale may also allow ING the flexibility to accept lower offers for South Korea and Japan, which have received lukewarm response so far in the bidding.

Front-runners

A consortium led by Hong Kong's Richard Li, the son of Asia's richest man, Li Ka-shing, may prove to be a leading contender to buy just the Hong Kong portion from ING, one of the sources said.

Li previously ran an insurance business in Hong Kong, which he exited in 2007 by selling a controlling stake to Dutch and Belgian financial services firm Fortis.

Pan-Asian life insurer AIA Group Ltd. and Canadian insurer Manulife Financial Corp. are the leading contenders to buy ING's Southeast Asia operations, sources have previously said. Li's bidding group has also expressed interest in the Southeast Asia units.

ING's auction has put the Malaysian and Thai regulators in a bind as the two countries do not allow foreign insurers to buy 100 percent of domestic insurance operations. ING launched businesses in the two countries before the regulations went into effect.

ING's Southeast Asian operations are valued between $2.5 billion and $3 billion, with Malaysia accounting for about two-thirds of the total value.

An AIA spokeswoman declined to comment. Spokesmen for Manulife and Richard Li also declined to comment. — Reuters

source: gmanetwork.com