Maine Ranks Among Most Affordable States for Personal Auto and Homeowners Insurance

PRESS RELEASE – Bureau of Insurance, 2/10/2017

The State also has the nation’s second lowest percentage of uninsured drivers at 4.7%, and continues to have the lowest average homeowners premiums in New England

GARDINER –Insurance Superintendent Eric Cioppa announced that Maine continues to be among the top states in the nation for most affordable homeowners and personal auto insurance rates.

For the fourth year in a row, Maine ranks 3^rd for lowest average auto insurance premiums, nationally, and for the third year in a row the state ranks 10^th for lowest average homeowners premiums nationally, according to recently released reports by the National Association of Insurance Commissioners (NAIC). Maine continues to have the lowest average homeowners premiums in New England.

• The NAIC’s Auto Insurance Database Report provides the average costs associated with personal automobile insurance and includes state-by-state auto insurance data and analysis for insurance regulators, consumers and lawmakers.  The types of auto insurance coverage included in the report are bodily injury and property damage liability, uninsured and underinsured motorist, medical payment, collision, and comprehensive.

• The NAIC’s Homeowners Insurance Report provides data on market distribution and average cost by policy form and amount of insurance.  Data is collected from insurance statistical agents or reported directly to the NAIC and includes national and state-specific premium and exposure information for homeowners policies, as well as non-commercial dwelling fire insurance policies.

“Despite having coverage requirements that exceed those in most other states, Maine continues to have consistently low average auto premiums,” Superintendent Cioppa said.  “And our State also remains among the most affordable for homeowner’s insurance.”

According to the Insurance Research Council, Maine also continues to have one of the lowest percentages of uninsured motorists, at 4.7%.

More information is available from the NAIC (www.naic.org).  Maine consumers and business owners with questions about auto, home, business or other lines of insurance are encouraged to contact the Bureau of Insurance by calling 1-800-300-5000 or sending a message to Insurance.PFR@maine.gov.

Get ready now for an active hurricane season

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT
Posted May 23, 2016, at 6:15 a.m.

Click image for info

If you missed Hurricane Preparedness Week (the third week in May), it’s not too late to take precautions that could save lives and/or property. The hurricane season begins officially on June 1 but serious storms can happen any time.

In Maine, consumers often think that the end of severe winter weather means we can all relax. In fact, the same diligence we practice in keeping ahead of ice and snow serves us well when severe storms strike.

Several forecasters are predicting the most active hurricane season since 2012, with 14 named storms, eight hurricanes and three major hurricanes likely.

There’s no guarantee that all of those storms will hit the United States. But many of us can recall a hurricane that has visited Maine. And most of us would agree, it’s better to be prepared than to be unprepared.

Emergency officials remind us that updating our insurance coverage is important. Whether you own or rent, it’s worth meeting with your insurance agent before hurricane season really ramps up.

Maine’s Bureau of Insurance has a number of resources to help both homeowners and renters prepare. Call the bureau, 1-800-300-5000 toll-free in Maine, or visit its website, www.maine.gov/pfr/insurance/consumer/brochures.htm#homeowners, for a home inventory checklist, insurance guide for natural disasters, advice on making claims following storms and more.

The National Association of Insurance Commissioners website has more information at www.naic.org/index_consumer.htm.

Most homeowners’ and renters’ insurances do not cover flood damage. Flood insurance must be purchased separately, if you live in a floodplain where you need coverage. There also is a waiting period before it takes effect.

Contact the National Flood Insurance Program by phone at 1-800-427-2419 or online at www.floodsmart.gov for detailed information.

Consumers should put together emergency supplies. Nonperishable food, a nonelectric can opener, cooking utensils, drinking water, flashlights with good batteries and a battery-powered radio are basics. Extra clothing, blankets and a well-stocked first aid kit are also needed items.

Imagine what the loss of important papers in a storm could mean. Consider keeping copies at home and original documents in a safe deposit box or other secure storage site. If you keep your only copies of insurance policies at home, be sure you can get them in a hurry if you have to leave.

Get your home ready by keeping trees trimmed to minimize danger from broken branches. Shop ahead for materials to cover windows; they may be hard to find a day or two before a big storm.

If a hurricane approaches, put vehicles in garages or other secure places. Bring loose items inside and secure all doors; garage doors are often the most subject to damage. Good preparations should help to settle an insurance claim more quickly.

After a major storm, beware of “deals,” especially involving used vehicles. Hidden flood damage that’s not revealed in a private sale might cause big headaches.

Damp goods sold by salvage specialists may or may not be bargains; shop carefully.

If you’re vacationing in an area that’s been hit by a hurricane in the past, pay attention to weather forecasts. Be ready to alter your travel plans if there’s danger of a serious storm. Find out if there are evacuation routes you should know about and how people are alerted about using them.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Hitting a deer may affect car insurance payments

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT

Posted Oct. 12, 2015, at 6:39 a.m.

Click image for current Maine DOT deer and moose crash info

“Got your deer yet?”

Hunters who have had success in the annual hunt welcome that question. For people who have hit a deer with their vehicles, the result can be expensive and injuries severe.

Car-deer collisions are all too common. In Maine, such accidents happen hundreds, even thousands of times each year.

Hitting a deer or other animal can result in major vehicle damage. Your insurance may pay for all or part of the repairs, depending on your coverage. Maine requires all drivers to have liability insurance; if you’re in an accident with someone, liability covers the damage to that person’s vehicle. Insuring your vehicle against damage can be a bit trickier.

There are two basic types of such insurance: collision and comprehensive. Collision insurance pays for damage to your car as a result of a collision with an object, such as another car or a tree. This is relatively expensive coverage, and it’s not required by law. Comprehensive coverage pays for damage to your vehicle from most other causes: fire, severe weather, including floods, and theft.

Allstate Insurance Co.’s website, allstate.com, offers succinct guidance on the differences between collision and comprehensive insurance coverage. The site notes that some states let you choose whether you want a damage claim paid under collision or comprehensive coverage. It goes on to say that, “since this is not at ‘fault’ type of loss, your insurer is likely to process this through your comprehensive insurance coverage.”

The follow-up question is, what happens to your rates after you file a claim? Because the insurer does not consider a motorist “at fault,” it’s unlikely your rates will go up. We would, however, never say “never.”

We posed the question to Doug Dunbar, spokesman for Maine’s Department of Professional and Financial Responsibility, which includes the Bureau of Insurance.

“Some companies will increase the premium at renewal when an accident with an animal has occurred. Some companies won’t increase the premium,” he said. In Maine, one size does not fit all.

The Allstate website offers another key piece of information. To claim a loss under comprehensive coverage, “there must be physical contact with the deer — otherwise it will likely be processed as a collision loss.”

Car-deer accidents increase in autumn. To reduce your chances of hitting a deer, stay alert. Remember that deer often move together; if you see one, another is likely nearby. Use your high beams at night for better visibility, especially along roadsides where deer graze.

If a collision seems unavoidable, don’t swerve; tugging the wheel could head you into oncoming traffic or cause a rollover crash. A slight steer into the hind quarters could lessen chances the animal will crash through the windshield.

Learn more about staying safe around wildlife at the Maine Department of Transportation website, maine.gov/mdot/safety/wildlife.

HANDY BROCHURE FOR EVERY DRIVER – NEW OR EXPERIENCED

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Vacation essentials: What you need to know when renting a car

Consumer Forum

By Russ Van Arsdale, Executive Director Northeast CONTACT
Posted Feb. 08, 2014, at 1:42 p.m.

With school vacation week fast approaching, many families are thinking about getting away. For some, that might mean renting a car. Here are some factors consumers should consider.

Rental car companies are joining the “fee-ing frenzy” and adding fees onto the damages you have to pay if you damage their vehicle in an accident. They’ll likely press you to buy collision damage waiver insurance. Your auto insurance policy may cover the rental car as if it were your own, and paying with a credit card may fill any gaps.

So, the question is, should you take out extra insurance when you rent a car or truck? The answer is, it depends. As with many consumer issues, easy answers are hard to come by. That’s true, even when you call and ask directly.

Major credit cards offer some protection for customers who rent vehicles. Let’s say you call with a question about coverage; a customer service representative assures you that, if you pay the full cost of the rental with their card, you’re all set. However, the fine print in the card contract might say otherwise.

While their damaged vehicle is being repaired, rental companies typically charge loss-of-use fees and administrative fees. A case that went to the Colorado Supreme Court in 2012 upheld companies’ rights to charge such fees. That ruling applies only in Colorado, and many insurers and credit card companies refuse to pay the fees.

Some consumer advocates say car rental companies should be forced to turn over “fleet utilization logs,” to prove they had no other cars available to rent and were therefore entitled to loss-of-use fees. The rental companies generally disagree; one company spokesman called those logs “proprietary and confidential.” Without seeing those logs, it’s hard for consumers to dispute a rental company’s claim of lost use.

Then there are the diminution-in-value charges. A car that’s been damaged in an accident will have a lower resale value, and rental companies may seek to have someone else pay the tab. That might be your insurance company, or it might be you.

Visit the website http://www.creditcards.com, and search “car rental insurance” for the ins and outs of buying added protection. The site offers a side-by-side comparison chart for coverage offered by the major credit cards.

Before signing your rental agreement, find out how tolls are paid. Some rental vehicles are equipped to have tolls paid electronically, and companies might charge a few dollars per day for the convenience of not having to fish around for change at toll booths. However, some companies may apply the charge every day, whether the car is in use or not. Find out before you sign.

Rental companies offer the option of prepaying for gas; this saves you the hassle of heading for a gas station when you’re anxious to begin your drive. It may be convenient, but you may end up paying for gas you haven’t used. You might also find a better deal yourself than the rental company employee who filled the tank.

You might also be charged for a GPS device, satellite radio and child safety seats. If you think you’ve been charged a fee that wasn’t disclosed, fight it. Paying with a credit card gives you time to do that.

Check out a top ten list of car rental tips at www.edmunds.com.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Maine’s Insurance Superintendent Highlights New Enrollment Period for Individual Health Insurance Policies

Individual Policies Can be Purchased Until March 31, 2014

GARDINER – Insurance Superintendent Eric Cioppa is highlighting a new Maine law that establishes an enrollment period for people to sign up for individual health insurance policies.  The new law, passed by the Legislature earlier this year, is intended to provide consistency with the federal health care reform law (ACA).  Under the ACA, insurance companies cannot deny coverage for pre-existing conditions, and sets March 31^st as the deadline for people to enroll for a policy in the individual health insurance exchange.  The enrollment period is intended to reduce the likelihood that people will sign up for policies only when they become sick.

Superintendent Cioppa explained that after March 31, 2014, consumers will not be able to purchase a health insurance policy until the next annual enrollment period, unless there are special circumstances—such as getting married, divorced, or losing a job.  The same enrollment periods apply whether policies are purchased ‘on’ or ‘off’ the federally-administered health insurance exchange, also known as the Health Insurance Marketplace.  Policies sold on the federal exchange are expected to be available October 1, 2013.

This enrollment period change does not apply to health insurance policies purchased in the small or large group markets, or to health coverage obtained through self-insured plans.  It also does not apply to Medicare or to private Medicare supplement “medigap” or Medicare Advantage insurance policies.

Cioppa pointed out one special situation that will apply only in 2014.  Anyone with an individual policy that ends after January 1, 2014, will have a one-time limited period to buy another policy beginning 30 days before the policy’s end date.  This one-time limited enrollment period applies whether the new policy is purchased on or off the federal Health Insurance Marketplace.

“Important changes in the next 6 months will affect how and when consumers can buy individual health insurance policies,” said Cioppa. “Mainers need to understand these changes to make the best decisions for themselves and their families.  Consumers with questions about these changes – or anything related to health insurance – should contact the Bureau of Insurance.”

Consumers with questions can call the Bureau of Insurance toll-free at 1-800-300-5000 or visit the agency’s website (www.maine.gov/insurance).  Information about the federal Marketplace is also available at www.healthcare.gov or by calling 1-800-318-2596 (TTY 1-855-889-4325).

Maine Bureau of Insurance to Hold Public Informational Sessions Regarding the Federal Health Care Reform Law (ACA)

Topics to Include the New Federal Health Insurance Exchanges and Newly Proposed Plans for the Individual and Small Group Markets

GARDINER – Superintendent Eric Cioppa has announced that the Maine Bureau of
Insurance will be holding public information sessions regarding the federal health care reform law (ACA).  Individuals seeking information about the new federal health insurance exchanges, newly proposed plans for offering on the exchanges, or other aspects for the health insurance portions of the ACA are invited to attend.

Questions about all other types of insurance are also welcomed.  The Bureau will address all insurance-related questions or concerns.  Informational materials will be available.  Dates, locations and times are listed below:

August  15^th:    6 pm, USM, Portland (Talbot Lecture Hall) 

August 16^th:     6 pm, Husson University, Bangor (CFB Conference Room)

August 29^th:     6 pm, Central Maine Community College, Auburn (Kirk Hall)

August 30^th:     6 pm, University of Maine, Presque Isle, (Allagash Room)

Each session will be preceded at 5:00 p.m. with a public session for individuals wishing to comment on Anthem’s request to discontinue its current plans in the individual market and offer people with those plans the option of selecting one of Anthem’s newly proposed plans.  Approximately 17,500 people in Maine are covered by one of Anthem’s current individual plans.  Some of those people would be ‘grandfathered’ and able to maintain their present coverage, because they signed up for the policy prior to the ACA becoming federal law.  The Bureau will hold a formal hearing on this matter on September 9, 2013 at 9:00 a.m. in Room 208 of the Burton M. Cross State Office Building in Augusta.   

Consumers with questions about the ACA can also call the Bureau of Insurance toll-free at 1-800-300-5000 or visit the agency’s website (www.maine.gov/insurance). 

Maine Protects Insurance Consumers by Reaching Settlement with Three CIGNA Companies

Agreement Requires Re-evaluation of Disability Income Claims,  Improvements to Claims Handling Practices and Payments of Fines

GARDINER –Insurance Superintendent Eric Cioppa announced Wednesday that the Maine Bureau of Insurance has reached a major multi-state settlement regarding the handling practices of disability income insurance claims by Life Insurance Company of North America (LINA), Connecticut General Life Insurance Company and CIGNA Health and Life Insurance Company (formerly known as Alta Health and Life).  The settlement was reached through the coordinated efforts of Maine and four other state insurance agencies: California, Connecticut, Massachusetts and Pennsylvania.

“Coordinated examinations by Maine and other states showed that these three CIGNA companies were not using available information to appropriately process disability income insurance claims, and that their claims handling practices needed improvements,” Superintendent Cioppa said.  “The companies are now re-evaluating certain claims and have so far set aside $48 million in reserves in the event additional benefits need to be paid.  They have also set aside an additional $29 million for presently open claims.”

Cioppa outlined the requirements contained in the settlement agreement.  The companies are required to:

·         Enhance claim procedures to improve the claims handling process to benefit current and future policyholders.

·         Establish a remediation program in which the companies’ enhanced claim procedures will be applied to certain previously denied or adversely terminated claims for residents of states whose insurance commissioners sign the settlement agreement.

·         Participate in a twenty-four month monitoring program conducted by the insurance departments of the five states involving random sampling and on-going consultation.

·         Undergo a re-examination upon completion of the monitoring period.

·         Pay fines and administrative fees totaling $1,675,000.

The companies have set up a dedicated line for policyholders with questions on the claim re-evaluation process.  That number is 1-855-625-5518.  A copy of the full “CIGNA Regulatory Settlement Agreement” is available at www.maine.gov/pfr/insurance under “Featured Links.”  Consumers seeking additional assistance with this issue or any other insurance questions should call the Maine Bureau of Insurance toll-free at 1-800-300-5000. 

 

Poaching Veterans’ Pensions | Consumer Information

Poaching Veterans’ Pensions | Consumer Information.

Veterans and their families are a target for some dishonest advisers who are claiming to offer free help with paperwork for pension claims. The scheme involves attorneys, financial planners, and insurance agents trying to persuade veterans over 65 to make decisions about their pensions without giving them the whole truth about the long-term consequences.

Specifically, these unscrupulous brokers try to convince veterans to transfer their assets to a trust ­ or to invest in insurance products ­ so they can qualify for Aid and Attendance benefits. What they don’t reveal is that these transactions could mean that the veteran loses eligibility for Medicaid services or loses the use of their money for a long time. Adding insult to injury, the advisers are charging fees that range from hundreds to thousands of dollars for their services.

Your best defense against someone who wants to poach your pension to get you a better deal? A firm “no, thanks.”

Maine Bureau of Insurance Obtains More Than $3 Million in Recoveries for Consumers in 2012

State Agency Handled Almost 9,000 Inquiries and Over 850 Complaint Cases

GARDINER – Superintendent Eric Cioppa announced on Friday that the Bureau of Insurance obtained more than $3 million for Maine insurance consumers in 2012. Nearly $2.2 million was recovered for consumers by the Bureau’s Consumer Health Care Division, and almost $950,000 was recovered for consumers by the Property and Casualty Division.

“The Bureau of Insurance takes its responsibility to assist Maine consumers, whether individuals or businesses, very seriously,” Superintendent Cioppa commented. “This can involve answering questions and providing information, or conducting investigations when a violation of Maine insurance law has been alleged.”

Cioppa noted that most insurers operating in Maine pay claims properly and quickly, but emphasized that when individuals or business owners contact the Bureau because of a dispute with an insurance company or agent, the agency can often provide assistance.

Cioppa said the Bureau fielded almost 9,000 inquiries and more than 900 complaints during 2012: the Property and Casualty Division handled 4,760 inquiries and 319 written complaints; and the Consumer Health Care Division received 3,958 inquiries and 543 written complaints.

Consumers with questions about insurance matters can obtain information and assistance from the Bureau by visiting the agency’s website (www.maine.gov/insurance), calling toll-free 1-800-300-5000, or e-mailing Insurance.PFR@maine.gov.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation, which encourages sound ethical business practices through regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine.

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Maine Ranked in Top Ten for Affordability of Homeowners and Personal Auto Insurance

GARDINER – Maine’s Insurance Superintendent Eric Cioppa announced Friday that the National Association of Insurance Commissioners (NAIC) has released two reports showing an improvement in Maine’s national ranking for two lines of property and casualty insurance: personal auto and homeowners. The NAIC shows Maine in the top ten, meaning the cost for these types of insurance is lower than in most other states.

“Maine’s auto and homeowners insurance rates are among the lowest in the country,” commented Superintendent Cioppa. “These results are signs of a healthy and well-functioning property and casualty insurance market.”

In their 2010 Homeowners Insurance Report, the NAIC provides data on market distribution and average cost by policy form and amount of insurance. Data was collected from insurance statistical agents or reported directly to the NAIC and includes countrywide and state-specific premium and exposure information for homeowners policies, as well as non-commercial dwelling fire insurance policies. For homeowners insurance, Maine is ranked 9^th nationally for 2010 (the most recent data evaluated by the NAIC), compared to 11^th in 2009.

The NAIC’s 2009/2010 Auto Insurance Database Report provides the average costs associated with personal automobile insurance nationwide. For personal auto insurance, Maine’s ranking improved from 6^th in 2009 to 5^th in 2010. The report includes state-by-state auto insurance data designed to provide necessary information and analysis to insurance regulators, consumers, and policymakers. The types of auto insurance coverage included are bodily injury and property damage liability (including no-fault), uninsured and underinsured motorist, medical payment, collision, and comprehensive.

More information is available from the NACI (www.naic.org).  Maine consumers and business operators with questions about auto, home, business or other lines of insurance are encouraged to contact the Bureau of Insurance by calling 1-800-300-5000 or sending a message to Insurance.PFR@maine.gov.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound business practices through high quality, impartial and efficient oversight of insurers, financial institutions, creditors, investment providers, and numerous occupations to protect the public.