Important Tips About Disability Income Insurance

Insurance Commissioner Dave Jones today advised consumers about the importance of understanding their options when considering disability income insurance.

“In a down economy many people may not think their most valuable asset is their ability to work,” said Commissioner Jones. “But if illness or injury were to keep you from earning a living you would still need to pay your bills. Disability income insurance could be a viable option for people and their families, and that’s why consumers need to take the time and evaluate their options closely.”

According to the U.S. Census Bureau, one in four of today’s 20-year-olds will become disabled before reaching retirement age; however, only 32 percent of U.S. private industry workers have long-term disability income insurance as part of their benefits package.

An individual may obtain disability income insurance coverage in two ways – either through a group-sponsored setting or purchased as an individual. Group insurance is available through an employer or an association, and these policies may offer short-term and long-term coverage. Short-term disability income insurance typically replaces a portion of the policyholder’s salary up to a year following the disability, while long-term disability income insurance may begin six months after the disability and can last a few years or even until retirement.

Individual insurance is coverage that can be purchased from any insurance company that offers it. The terms of the policy, length and type of coverage are negotiated between the individual and the insurance company and are generally subject to underwriting requirements.

Comparing Disability Policies – When considering disability income insurance policy options there are definitions and benefits consumers should carefully compare.

Definition of disability – the definition varies from policy to policy. Some may pay benefits if you cannot perform the duties of your own occupation, while others may require that your disability keep you from performing tasks of any occupation you are reasonably expected to perform based on your age, education, training and experience.
Extent of disability – Some policies may require you be totally disabled before it pays benefits, while others may pay a limited amount or for a limited time if your injury limits you to performing only part of your job.
Disabilities Covered – The list of covered injuries or illnesses considered disabilities under the policy will vary. Coverage for pre-existing conditions may be limited or excluded.
Residual benefits – This coverage fills in a gap in come if you are partially disabled, you return to work, and your income is reduced because you can’t perform all of the duties of your job.
Determining How Much Coverage You Need

Before purchasing disability income insurance, determine how much income you need to meet critical financial obligations such as rent/mortgage, food, fuel/transportation, utilities, etc. An easy way to do this is by adding up your monthly expenses and comparing them with the income from any existing disability coverage, plus any income from other sources, such as personal savings.

Becoming disabled can also bring with it increased or additional expenses like health care costs, assistance with daily activities, even home modifications. Keep this in mind while evaluating the amount and type of coverage you could need.

The amount of benefits you receive is based on a percentage of your pre-disability earned income. The benefit amount received can be reduced by other sources of disability support such as Social Security disability payments, employer long-term disability insurance, among others.

If the long-term disability income insurance coverage your employer offers is not enough to cover your needs, there are options for purchasing additional coverage.

When it comes to insurance, your options can be confusing and it can be difficult to determine your family’s needs. Learn more about insurance by visiting the us online at www.summergroup.net or contact us toll free at (888) 541-9444.

Retailers with Sales in CA at Risk of Penalties Following State Supreme

Retailers with Sales in CA at Risk of Penalties Following State Supreme
Court Decision

A recent decision by the California Supreme Court has placed retailers and other businesses that obtain and record personally identifiable customer information during point-of-sale transactions in the state at risk of significant penalties.

Retailers with transactions in California are being named in class-action lawsuits following a February 2011 California Supreme Court decision, Pineda v. Williams Sonoma Stores, Inc. The decision found that the state’s Song-Beverly Credit Card Act of 1971 prohibits retailers and other businesses engaged in credit card transactions from collecting and recording customer information such as zip codes or any other personally identifiable information not provided by the credit card itself during point-of-sale transactions.

The statute authorizes penalties of up to $1,000 for each transaction that violates the statute. While coverage will depend upon the claimant’s allegations, the loss is likely not covered by a business’ general liability insurance policy.

A retailer may be headquartered anywhere in the country, but only the transactions conducted in the state of California are subject to the statute and its penalties. If you have retailers with California transactions among your customers, you may wish to share these tips with them:

• Do not ask for customer zip codes, even if only for marketing or security purposes. Asking for this information is risky.
• If retailers use zip codes for security measures, instead ask to see customers’ driver’s license or other forms of identification, but don’t record the information.
• If a retailer has been recording zip code information, even if only for marketing purposes, seek legal counsel.

Risks of Condo & Town House Owners

Homeowners Insurance – Risks of Condominium and Town House Owners 

The single biggest change in the housing market in the past 20 years has been the movement away from single-family homes toward town houses and condominiums. A new type of Homeowners policy, called a unit-owner policy, has been created to meet the special needs of town house or condominium owners.

The good news is that there’s now a special policy for those who own townhouses or condos. The bad news is that this policy is the single most difficult Homeowners policy to set up correctly – without serious gaps.

Defining the Problem

People who buy townhouses or condominiums (unit owners) band together to form homeowner associations. One of the functions of the association is to arrange insurance coverage – both property and liability – for the entire complex of buildings (the insurance is called the master policy). The master policy insures all structures, including the majority of the structure owned by each unit owner. Each unit owner is responsible for insuring her own belongings, plus any part of her unit structure not covered by the association master policy. The board of directors of the association determines exactly which part of each unit is insured by the master policy and which part is the unit owner’s responsibility. That information is contained in the association documents (the Bylaws, Declarations, or Operating Policies).

There are really two problems for unit owners. The first is identifying exactly what part of the unit structure is the unit owner’s responsibility and is not insured by the master policy. The second is finding the expert advice you need to help you modify your unit owner policy to plug the coverage gaps that exist between the two policies.

Distinguishing between condominiums and town houses

Town houses and condominiums are individually owned, residential units, similar to apartments, that are part of a complex of similar units attached together in one or more buildings. The usual distinction between the two is that town houses have their entry doors open to the outside, have other adjacent units only on either side but not above or below, and are often multilevel; condominiums, like most apartments, open to a common hall, are usually one level, and normally have adjacent units on either side, as well as above and/or below. From the outside, town houses look like single homes attached at the sides; condominiums look like apartments in an apartment building.

Similarities between condos and town houses are that:

• In addition to the ownership of their individual units, owners also own a proportionate interest in common areas like lawns, community structures, swimming pools, and so on.
• A board of directors of elected unit owners acts on behalf of the association of all unit owners.
• Several association documents exist that define rights, obligations, and operating policies.

If you have any questions, please call us now at (888) 541-9444.  The call is Free.  The advice is Free!

Townhome and Condominium – Exposing the Insurance Coverage Gap

In the vast majority of associations, a significant structural coverage gap between the association’s master building insurance policy and the unit owner‘s personal Homeowners policy exists. This gap is normally the result of a misperception on the part of the unit owner.

The unit owner believes – usually mistakenly – that he is responsible for insuring his personal belongings only, and that the association’s master policy pays for everything structural in the unit, after a policy deductible of typically $1,000. This misperception is reinforced by the basic unit-owner Homeowners policy, which covers the contents of the unit and usually only has $1,000 of building coverage – enough to cover the master policy deductible.

WARNING: But the reality, most of the time, is that the association master policy covers, at a minimum, the bare exterior walls of your unit and the bare floors, but then makes you responsible for some or all of the rest of your unit. This could be a big coverage gap – I’ve seen it be as large as $100,000! Can you imagine discovering this gap only after a fire destroys most of your unit? Sadly, that’s when most people find out.

Discovering where the gap is defined

The gap is not, as you may expect, spelled out in the master policy. Rather you will find it in one of your association documents, usually the Declarations. The Declarations define which part of your unit the association will insure. Here are some typical examples of items that the unit owner may be responsible for replacing – things excluded by the association master policy:

• Drapes, carpets, and wall coverings
• Any structural improvements you make
• Any improvements made by any unit owner since the unit was built (a fun one! How do you ever determine that?)
• Everything but exterior bare walls and floor – you’re responsible for carpet, wall coverings, built-in appliances, all interior walls, cabinets, plumbing appliances like tubs and toilets, lighting fixtures, and even unit-specific wiring! Ouch!

The price of a commission

I suggest that you have your agent review your Declarations for you or with you.  Often this may be difficult to do. Why? Because of how agents are paid. It’s the American way that people take jobs where they get paid well for their talents.  Agents usually do the same. Because the premium is small on a unit-owner policy, the average commission to the agent is about $50 a year. As a result, these policies tend to get sold by relatively inexperienced agents and tend to be mass-produced, neither of which helps you find the expertise you need. The expertise and care you need are out there. You may have to dig a little deeper to find them.

TIP: It is imperative if you own a condo or town house that you and your insurance agent read the Declarations to find out the extent of your obligations and modify your unit-owner Homeowners policy before you have a serious uninsured loss.

Call us now to make sure you are properly covered.

The call is FREE: (888) 541-9444   / www.summergroup.net

Life Insurance is For The Living!

Life Insurance is For The Living!

You need to ask yourself this one simple question:  Is something happened to your spouse this very night, could you afford to pay the mortgage, raise the kids, and pay all the bills on only your income.  If the answer is no, you need to call us immediately, not later…not tomorrow…but now!!

 I always tell my clients one simple thing… If you have kids, having a parent pass away is already the most devastating lifetime event.  You don’t want to make them go through the second most devastaring event…moving from their family home! 

 Life insurance can cost as little as $20 per month for $250,000 in protection.  Please make sure your family is financially protected in case disaster hits.

Remember:  Life Insurance Isn’t for People Who Die…It’s for the People Who Live!

Call me now so we can talk about your life insurance and the needs for those you will leave behind…

Gerald Reed   (888) 541-9444  (even the call is free!)

Collector Car Insurance That You Can Drive & Afford!

Got a Classic Car, Hot Rod or Antique Auto? 

(Antiques, Classics, Modern Classics, Street Rods, Modifieds, Kits, Replicas, Collectable Special Interest, Vintage Military Vehicles, Farm Tractors, Fire Trucks and Vehicles Under Restoration)

 

 

Then you need to know…We Have An Excellent Program Built Just for You!

 

Classic Collectors Insurance by Infinity offers an excellent program.  We Feature an Exclusive UNLIMITED mileage plan called “Live & Let Drive”.  You can also save money $$$ with our 1,200 and 6,000 mileage plans.

 

Our Policy Features:

 

Low Premiums-Big Savings over regular auto insurance

 

Agreed Value-We pay the full insured value of your vehicle in the event of a covered total loss

 

No Deductible-Zero out of pocket expenses in the event of a covered claim

 

Single Liability Charge-Only one liability charge per policy(not vehicle), no matter how many cars

 

Collection Discounts-Save even more when you insure all your collectible cars with us

 

FREE Towing & Labor Coverage-Our network of over 40,000 service providers are ready to serve you 24 hours/day.  Flatbed towing upon request

 

FREE Spare Parts Coverage-Up to $1,000 if stolen or damaged in an accident

 

FREE Trip Continuation Coverage-Up to $75/day for lodging & transportation expenses

 

FREE Full Glass Coverage-Applies to all auto glass including windshields, side glass, back glass, door glass, mirrors, sun and moon roofs

 

Flexible Usage Plans-Featuring “Live & Let Drive” UNLIMITED mileage plan.  Save $$$ with our 1,200 & 6,000 mileage plans

 

Automatic Newly Acquired Vehicle Coverage-Values up to $75,000 for 30 days

 

Expert Handling & Service-Our specially trained Claims & Customer Service Staff understand the unique needs of collectable car enthusiasts

 

Wide Vehicle Acceptance-Antiques, Classics, Modern Classics, Street Rods, Modifieds, Kits, Replicas, Collectable Special Interest, Vintage Military Vehicles, Farm Tractors, Fire Trucks and Vehicles Under Restoration

 

Call us now Toll Free at (888) 541-9444 or visit us at www.summergroup.net

This is actually my Father in Law, Ed Weyers 1937 Chevy.  He just recently finished it.  Beautiful ride!

What is the difference between admitted and non-admitted carriers?

Many consumers are confused by what it means for their insurance company to be non-admitted in the State of California. It is commonly thought that this means that a carrier isn’t licensed in the state. This is far from the truth! Of course they have to be licensed to sell insurance in your state, but Admitted companies have gone through the stringent regulatory processes of the state, and they must comply with the governance of the California Department of Insurance (DOI). The admitted carrier’s financials are reviewed by the State, and their rates and policy forms must be approved by the state Insurance Commissioner. They comply with this by becoming a member of the California Insurance Guarantee Association (CIGA). In becoming admitted this allows their insureds to be protected should they go belly-up, but only up to certain limits.

For instance, CIGA’s limit for paying out on liability claims is $500,000. So if a claim for $1,000,000 is filed against you, and your insurance carrier went broke, even if CIGA steps in, you could still be on the hook for the other $500,000. Almost all A rated carriers though, (including non-admitted carriers), are reinsured by another larger carrier. (Your carrier purchases insurance with another carrier to cover your claims in the event they can’t). So in this case, if your carrier goes belly-up regardless of their admitted or non-admitted status, the reinsurance carrier may step in before CIGA does.

By contrast, Non-Admitted companies have elected not to be authorized by the state DOI. Often mistakenly perceived as being “shaky” or questionable companies, these carriers intentionally opt not to be admitted in order to allow more leeway in pricing and coverage scope for policies they will write. Admitted companies may be unable to insure risks due to limitations on premium increases imposed by the DOI, where Non-Admitted companies can be very flexible and can act fast in order to keep up with market changes. This flexibility will often result in a customized coverage solution for complex policy placements or for those who operate businesses seen as higher risk by admitted carriers.

Just because a carrier is admitted, doesn’t mean they are more financially solvent. Sometimes just the opposite can happen, that because of the restrictions on rates and coverage forms, admitted carriers’ claim payouts could increase faster than allowed premium increases in certain classes of business. This could cause a carrier to find itself in financial trouble if they don’t have the freedom to increase premiums in order to keep pace with claims. My agency is careful to write business with carriers in good financial standing , and when in doubt, (because ratings can change quickly), we can look up their financial strength rating with independent rating bureaus like AM Best and supply this to you.

Admitted vs. Non-Admitted

So, now you understand, the question shouldn’t necessarily be “Admitted vs Non-Admitted?”, but “is this company financially capable of paying my claim in the event of an accident?”

It is important to work with an Agent/Broker you can trust, and always take the time to understand the full implications of the offered terms and conditions and know the status and standing of any insurer being considered for coverage.

Please call today to discuss your insurance.  (888) 541-9444 or visit us online at www.summergroup.net or email Commercial Lines Manager, Shawn Goodman at service@summergroup.net

 

In Your Community…

We are proud supporters of the Women’s & Children’s Crisis Shelter inWhittier.  Domestic violence cuts across all boundaries of culture, education, ethnicity, religion, income and age. 

Battering may be physical, sexual, psychological or emotional.  It is ALWAYS harmful.  The Women’s & Children’s Crisis Shelter serves victims of domestic violence and their children by providing emergency and transitional shelter programs. 

 If you would like to join us in helping, please visit www.wccshope.org or call (562) 945-3937 .

 We Judge Our Success by How Much We Give

Here We Grow Again… Welcome Pam Lewis!

Pam joins your Protection Team in our Personal Lines Department as a Personal Risk Manager.  Pam is a licensed Agent/Broker with over 20 years of Personal Lines experience.  She enjoys getting to know her clients and finding out what they truly need for their insurance protection.  She loves the ability to package the clients insurance together and save her clients money too!  She is already enjoying her new position and loves it when clients stop in to say “Hi” and introduce themselves.

Pam moved locally fromSeattle11 years ago and resides with her 14 year old son, Chase and their 1 ½ year old Chihuahua/Cocker Spaniel dog Riley.  Pam enjoys dirt bike riding, bass fishing, camping and an occasional round of golf…time permitting!

You can contact Pam by phone toll free at (888) 541-9444 or email: Pam@summergroup.net

What To Do At The Scene Of An Auto Accident

What To Do At The Scene Of An Auto Accident

 

1. 1.     STOP Immediately but do not obstruct traffic.
2. 2.     ASSIST injured.  Have someone call 911.
3. 3.     SECURE names, phone numbers, addresses of other drivers, witnesses, injured persons, passengers.
4. 4.     SECURE make, model, license numbers of all cars involved.
5. 5.     MAKE rough drawing of scene, showing position of cars & other details.
6. 6.     DON’T hastily accept claim settlements at scene of accident.
7. 7.     DON’T accept blame or liability.
8. 8.     REMAIN calm, courteous and consistent in your version of accident.
9. 9.     NOTIFY your insurance agent/company as soon as possible.

 Please call your protection team member now if you would like us to mail you an Insurance I.D. Card holder with this information printed on it for you.  You can keep the holder in your car along with your registration.

(888) 541-9444 Toll Free

www.summergroup.net