Archive for December, 2009

AXA home insurance: Burst pipes pose threat to Christmas cheer

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by admin December 25, 2009 in Insurance News

AXA home insurance is warning homeowners that Christmas could be a wash out if their pipes burst while they are away from home. With 35 per cent of Brits set to be away from home for a few days this Christmas, AXA home insurance urges them to be wary of the fact that burst pipes could pose an even bigger financial threat than burglary. Only 38 per cent of households will leave the heating on low while they are away to prevent their pipes from freezing, while 71 per cent will lock the windows to keep out burglars. But last winter, AXA home insurance saw one in 1,000 homes make a claim for water damage resulting from burst pipes, with the averaging reaching the £15,000 mark. With 20 per cent of households having no contents insurance to protect them from the financial pitfalls of burst pipes, AXA is concerned that many could be facing a very costly Christmas.

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Insurers group issues advice for travellers affected by transport chaos

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by admin December 25, 2009 in Insurance News

The British Insurance Brokers’ Association (BIBA) is warning travellers who are affected by travel related strikes or financial failure over the Christmas period that not all travel insurance policies are the same. The group is advising travellers to contact their insurance provider to clarify their specific policy coverage, if they have booked independently of a travel agent or tour operator .

BIBA has said that all policies underwritten by Tokio Marine and those purchased from a BIBA broker are protected by the association. Read more…

Collecting on life insurance policies

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by admin December 23, 2009 in Insurance News

There is no time limit during which a life insurance beneficiary must step forward to collect the money, according to a spokesman for the American Council of Life Insurers. “If a person shows up 30 years after the insured’s death, the company still makes good on it.”

What happens if no one ever reports the death? If the insured dies and the life insurance company does not learn of the death, the policy lapses. Insurance companies will take steps to find out why a life insurance policyholder stopped making payments.

When an insurance company stops getting payments, it sends letters to the insured informing him the life insurance policy may lapse as a result of unpaid premiums. If the letters go unanswered, the company might initiate a search to find the insured. If that comes up empty, the company will then lapse the policy.

If a beneficiary to a policy never steps forward, it unfortunately means the insured paid money to a policy throughout his life and his beneficiaries never see a penny.

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Senate health bill lacks teeth to tackle fraud

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by admin December 23, 2009 in Insurance News

The prospects for including strong anti-fraud provisions in health reform died early Sunday morning when Sen. Harry Reid released the final amendments to the bill.

Several proposed amendments were considered, including one by Sen. Al Franken (D-Minn.) we liked a lot. New anti-fraud provisions that did make into the final bill include a package by Sen. Ted Kaufman (D-Del.) that contains tougher criminal sentencing, tighter fraud definitions and expansion of the federal false claims act. All are worthy provisions, but they aren’t the game changers needed to turn the corner on fraud.

This is truly a missed opportunity by Congress to save taxpayers and insurance consumers a bundle of money. Adding some 30 million people to insurance rolls will enhance the opportunities to defraud, especially by organized rings. A

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