Cash For Structured Settlements
Structured settlements might include either periodic payments or a lump sum payment made to an injured party. Also, some amount might be paid in advance as a lump sum to take care of any emergencies that might have resulted because of the accident.
There could be periodic lump sums in case there are other kinds of financial emergencies, instead of a regular periodic payment. The exact kind of settlement must be considered before entering into any agreement. Also, it is a compulsion to declare structured settlement while applying for any kind of loan.
Insurance companies deal with the structured settlements and sell them as annuities. These can be purchased with premium payments or with lump sum provided all at once. These could prove to be a big help in terms of emergency when the individual need to pay for a structured settlement payment in lump sum to some injured party. This will ensure that there is always some form of finance in hand that can be liquidated when money needs to be raised suddenly. However, it is suggested to decide carefully on which company to choose for buying an annuity. A little bit of market research might help a lot in investing in the best annuity. Check the amount of premium to be paid and the method in which the interest is being calculated. This might help in avoiding to pay more than the required amount for an annuity.
Before entering into an agreement with any insurance company, a little time in going through the contract might prove to be beneficial. The individual must be aware that the annuity might not be able to cover the whole structured settlement amount in case of emergency. However, the settlement can be liquidated for cash as and when required according to the redemption procedures of the insurance company.
Structured Settlements provides detailed information about structured settlements, cash for structured settlements, sell structured insurance settlements and more. Structured Settlements is affiliated with Lawsuit Loans In Texas.
[tags]structured settlements, cash for structured settlements, sell structured insurance settlements[/tags]
Insurance Credit Scoring An Ethical Issue
The issue at hand is the use of a consumer’s credit score as an underwriting tool for auto insurance rates. What is a credit score or FICO score? A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrower’s credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable.
Isn’t it interesting that the score most important in our financial lives, our consumer credit score does not even contain full disclosure? As stated above the Federal Trade Commission has ruled that it is ok for Fair Isaac & Co not to disclose the algorithms used in this process, but what about consumer rights.
While it is important to understand what a FICO score is, it is not the main issue of this paper, insurance rates are. So where is the connection? All the public knows is that Fair Isaac tells us there is a high correlation between people with bad credit and high risk drivers. This notion is insane and from what I can see from this black box approach, there is no real causation between the two.
This type of reasoning is similar to convicting a person of something before they have even committed a crime. For instance, let’s say I do a study and that study shows there is a high correlation between criminals and people with bad credit. Is this to say that just because you have bad credit you are more likely to commit a crime and therefore you should be profiled or perhaps locked up because you are a risk to society?
This system is discriminating against minorities, disabled and in my case college students among others. Fair Isaac & Co claims that they cannot show the sophisticated algorithms they use to calculate these correlations and scores because they fear that they would be giving up valuable proprietary information that was very costly to develop and maintain. What about the cost to consumer’s who may be paying higher rates or in worse cases even denied insurance based on these practices.
The Equal Credit Opportunity Act forbids creditors from considering race, sex, marital status, national origin, and religion, but if we don’t even know how these companies are calculating these scores, how in the world could we possibly know whether or not they are discriminating. This smoke and mirror approach is what many government agencies do to subtly discriminate and extort money from the American.
What about extortion? As I reflect on this topic extortion comes to mind. Webster defines extortion as to “obtain by force or compulsion.” By using such unfounded tactics consumers are forced into paying the higher rates. First of all, 90% of all insurance companies use this procedure; secondly in the interest of society legislation requires all Americans with cars to have car insurance. Living in a country where it is virtually impossible to live without a car doesn’t this present some force to pay the rates? Also, lets say you cannot afford to buy a car with cash, in which case you could obtain liability insurance alone and save quite a lot of money; but instead you take out a loan, the bank will require you to obtain full coverage auto insurance to cover them until you pay off the loan. While this case may not represent an extreme case of extortion it does give reason to ponder the connection.
Insurance companies tout themselves as representing peace of mind, protection and security, but at what cost. Over the past 10 years, I have spent roughly 20,000 dollars in car insurance, what have I claimed? Easily less than half and I totaled a car. Is insurance just a form of legalized gambling protected by government? The McCarran-Ferguson Act of 1944 exempts the insurance industry from antitrust laws, so here we are again without a choice; collusion is the rule not competition. Where are the ethics of lawmakers? Many states are screaming about this controversial issue and some states such as California have had some success, but with protection from top government what can consumers do?
I have personally written the Governor of Pennsylvania about the subject, one of my main questions was;
“I am a concerned citizen. Recently I noticed my car insurance rates increasing at a substantial rate. I investigated the situation only to find out that my credit rating was making the difference, not my driving record.”
The response I received from the Department of Insurance follows:
This letter is in reponse to your complaint filed with the Pennsylvania Insurance Dpartment through Governor Edward G. Rendell’s correspondence office regarding the use of credit as an underwriting tool for automobile insurance in Pennsylvania.
I have read through your concerns and it appears that you are questioning the underwriting of automobile insurance. Specifically, the use of credit in determining eligibility. Many different factors go into the underwriting of an insurance policy, such as type of vehicle, drivers, location, etc. and most recently credit history. Pennsylvania law does not prohibit an insurance company fromusing credit as an underwriting tool so long as it is done within the first 60 days of writing a policy. Under the law, an insurance company is granted a 60 day window from the inception of a policy to determine whether or not the policy fits into the company’s guidelines.
In your letter, you stated credit scoring in part of the rating structure and presumable must be approved by the Insurance Department. Actually, credit scoring is part of a company’s underwriting guidelines and the Dapartment only regulates underwriting guideline to the extent they are not discriminatory.
Also, Federal law under the Fair Credit Reporting Act allows credit information to be used for underwriting financial and insurance transactions.
Sincerely yours,
Debra L. Roadcap
Consumer Service Investigator
The response I received is hardly what I would call an answer, of course Federal Law preempts state law and the Fair Credit Reporting Act allows for use of such information, but the real question is why? An answer to this question has still not been received. I believe this is a highly unethical practice in which insurance companies are being given free rule to take advantage of low-income families, single mothers, disabled, minorities and others. If the government wants to do the right thing they should judge consumers on what they have done individually, not what scientist’s hypothesis they might do based on the history of others.
About The Author
My name is Richard D. Schrader, I advocate consumer education on many topics and help consult American consumers with excessive credit card debt. You can visit my website at www.debtjustice.net
webmaster@debtjustice.net
[tags]debt reduction,debt consolidation,debt tips,credit tips,credit,credit score,insurance[/tags]
Do You Need Rental Insurance
Many renters don’t stop to think about what happens if there is a fire, someone breaks in and steals their new TV or stereo, or a visitor slips and falls on their property. The sad truth is; you will be responsible! While your landlord has insurance that covers the actual building, that coverage does not include your personal property or liability for injuries which occur in the space you rent ~ be it an apartment or a house and yard.
If a fire should destroy or damage your home, your landlord’s insurance will cover the structure. It won’t cover damage or loss of your belongings. Neither will it provide for the cost of temporary housing for you and your family.
You may think you don’t own enough personal property to make the cost of insurance worthwhile. You’re probably wrong! If you sit down and add up the cost of everything you own, you may be in for a big surprise. Consider what you have invested in such things as:
Furniture and accessories
Electronics like TV, stereo, computers
Small appliances like microwaves, toaster ovens, etc.
Clothing
Art work like paintings or prints
Dishes, silverware and cookware
Sporting equipment
Books
Jewelry
Could you afford to replace all of these things?
Even worse, what would you do if a friend is injured on your property and decides to sue you for medical costs and more? It’s a scary thought, isn’t it?
Are you beginning to see why rental insurance may be a very wise investment?
The cost of rental insurance is based on several factors:
The dollar amount of your coverage
Deductibles
Whether you choose to be reimbursed for Actual Cash
Value or Replacement Costs (more about that in a minute)
Where your rental property is located and the number of previous claims made, not only by you, but by others living in the same area.
Let me explain the difference between Actual Cash Value (ACV) and Replacement Costs. ACV is the value of your property at the time a loss takes place. For example, if your television set is five years old, it’s valued at much less than if it were brand new. The lesser amount is what you are reimbursed.
However, if you opt for Replacement Cost, you’re paid whatever it costs to go out and buy a new TV with similar features. Insuring for replacement cost raises the amount of your premium so it’s a good idea to get quotes for both ACV and Replacement Cost policies. Then you can decide which option fits your needs and budget.
Another thing to keep in mind is that jewelry, valuable collections, and guns are usually covered under a separate policy or “rider”. If you own these kinds of items, be sure to tell your insurance agent. You don’t want to find out after disaster strikes that they aren’t covered or that they aren’t covered for their true value.
One way you can reduce the cost of your rental insurance is to check with whichever company insures your car. If they provide rental insurance you may be eligible for a multi-line discount.
Rental insurance may be worth the investment just for the peace of mind it offers you.
Kyle Thomas Haley has been helping people relocate on the Internet since 1999 with Apartment and Relocation Websites:
Apartment Rentals Nationwide
USA Moving Companies
Copyright 1999 - 2005 STANZEEKAY Inc.
You have permission to publish this article, free of charge, as long as the bylines are included and none of the links or
content are removed or changed.
[tags]apartment,apartments,apartment locator,renting,rentals,real estate,apartment search,rental insurance[/tags]
Why Boats Are A Pleasure… But You Still Need Boat Insurance
One of the greatest pleasures that a man can have is owning his own boat. It goes back to the days of adventure on the high seas when a man was absolute monarch of his realm as a captain of his ship.
Today there are very few places that the average man can be master and commander of his own destiny. But owning a boat is not without risk or expense. At one time cannons and carronades protected the owner and captain from loss today it is boat insurance that protects a man from loss.
It might seem like a small thing but boat insurance is essential to protecting an asset that you might have worked your entire life to own.
The greatest joy in boating is that you are responsible for your own fate. That means responsible and in some sense autonomous from the rest of the world. What boat owner hasn’t dreamed of sailing to the Sea of Cortez?
All alone with just the deep blue quiet all around you and the vault of stars above to light your way; what could be better? Listening to the plaintive whale song off the coast of Hawaii while your family sits in happy companionship, that is the way to spend your leisure.
But you need to have the assets to enjoy that leisure. Also even in the most peaceful of times boating entails some risk, that is why boating insurance is an absolute necessity.
Owning a boat is the goal of many retirees. Owning and operating a boat correctly requires the skill, desire, and time to care for her correctly. It also requires the wherewithal, assets and boat insurance to protect what you have. Your retirement is far too precious to risk.
It makes no sense to gain your heart’s desire and then to lose it in a storm or to bad navigation. Even if you survive without harm losing your boat can be devastating so protect what you have. And if you have the right vessel and the desire why not have a nice shiny brass carronade to salute the sunsets?
Discover important advice and information about boat insurance. What deals should you look for? And what should you avoid. Click http://www.boat-insurance-comprehensive.com/
[tags]Boat[/tags]
Instant Homeowner Insurance Quote Shopping Online is Easy
The online insurance shoppers have some distinct advantages. They don’t need an appointment. They don’t need to be on the telephone. They just need to be prepared. If you are planning to shop online then you need to have some basic information at your disposal. The first time buyer needs to have some basic information. The best resource for that information would be an appraisal. The home appraisal has most of the information necessary to give you an adequate quote. The market value of the home along with the square footage are the two most important criteria used to determine the amount of insurance needed. The market value and age will dictate the type of policy to purchase. The renewal declarations page is a valuable source of information for the comparison shopper.
Actual Cash Value - Actual cash value is one way the insurance companies settle losses. This method will calculate the actual replacement cost at the time of loss and subtract any depreciation because of age or use. You will generally see actual cash value policies written on older homes. Many of your older homes have a market value much less than the cost to rebuild. The older Victorian homes built in the early 1900’s are a good example.
Replacement Cost - This method is used for newer homes or homes under construction. Replacement cost claim settlements use materials of like kind and quality when repairing or rebuilding the structure and there is no allowance for depreciation.
The correct square footage is very important because the online insurance calculators determine the actual cost to rebuild your home based on your square footage calculation. Air conditioning and fireplaces are upgrades that increase the replacement cost value of your home. Finished basements and outdoor decking also add to the calculation.
Discounts are given for smoke detectors, dead bolt locks and fire extinguisher. There are even larger discounts for burglar and fire alarms that transmit directly to the police station and fire department. Be prepared with this information and your online shopping will be so much easier. View our recommended insurers for more detailed information.
View our Recommended Insurance Company This site is simple and easy to fill out a quote and has a lot of great info about Home Insurance and Affordable Health Insurance
[tags]instant,homeowner,insurance,quote[/tags]
Save Money on Life Insurance
In some states and provinces, people are choosing to live without insurance because the cost of insurance on an ongoing basis is prohibitive, compared to the chance of dealing with high costs when there is a break-in or an accident.
Here are some ways to save money on your life insurance:
Don’t Forget Dog Insurance
Dog insurance is the last thing you want to think about when in the joyful process of adding a furry new member to the family; but it is something you may want to strongly consider. It is a good idea when you consider the costs that can incur in caring for a dog during his/her lifetime. Unfortunately dogs do get sick and into accidents where injury may occur and Vet costs can be expensive; particularly where surgery might be necessary. If it is an after hour emergency, drop-in clinics can charge up to $100.00 just to walk in the door, this tells you what kind of prices they charge.
This information is not to scare you but to impart realistic advise. Even with the best care and intentions, emergencies can and will occur and getting dog insurance for your dog can be a saving grace in times that will already be fraught with stress. In old age, trips to the Vet will become more frequent. As with people, dogs are living longer due to better quality of life. Ailments due to the aging process increase and therefore so does expense.
Many pet insurance companies have a very reasonable rate and it is worth the expense. Some companies also include added benefits like expenses for locating a lost pet. Different companies have different age requirements and usually have restrictions as to the number of visits to the vet prior to qualifying for insurance. Therefore it is a good idea to give dog insurance consideration before you get your puppy or very soon afterwards. In regards to getting an older dog you will have to check the companies for age restrictions. Quite often veterinarians provide information on various pet insurance companies that offer a variety of dog insurance policies; the Internet is also a good source.
Gabriele’s website http://www.1st-greyhound-dog-care.com was created for the appreciation of this unique breed. Having been an owner for fifteen years has given her first hand knowledge and a special love for the sensitive and beautiful Greyhound dog. Gabriele is also a great fan of all types of dogs and hopes that the reader of any breed owner finds the information from her articles helpful.
[tags]Dog insurance, dog insurance, pet insurance, Greyhound dog, Greyhound[/tags]
Life Insurance, the Universe, and Everything
You may have noticed that life insurance is coming back into fashion. It’s true that it may not be the financial term on everybody’s lips, but sales of life insurance have been going up, according to the Association of British Insurers. Whilst we may not be saving the volume of funds that the financial institutes would like, we are at least flirting with the idea of becoming a little more protective with our finances.
If you have yet to consider taking out any life insurance, don’t worry -there’s plenty of information out there including consumer organisations such as which? and moneynet. Start with some simple, easy questions such as:
* Would my dependents need a lump sum, such as to pay off the mortgage?
* Will they need a replacement income?
* Should my partner and I both take out life insurance?
You need to ensure whatever life insurance cover you take out accommodates funeral expenses, an emergency fund to encompass household expenses in the short term, repayment of the mortgage, repayment of any other loans, inheritance tax, bequests in your will to people - in addition to your dependents, any other possible lump-sum expenses.
Life insurance broadly falls into two categories: term life insurance (protection only) and investment type. Term insurance is the cheapest type of life insurance and provides a pay-out if the person / policy holder dies within a selected period of years. If you survive beyond the given period of years, then no pay-out is given.
Investment insurance advises that you should choose a whole-of-life option which is a form of investment type policy. Whole-of-life insurance provides cover for as long as the policy holder lives. The policy must eventually pay out and therefore builds up an investment value which can be cashed in by surrendering the policy. However, it often takes many years for a surrender value to build up and in general, whole-of-life policies are expensive if your main requirement is protection, the same is true endowment policies. Endowment policies are investment insurance products which pay out upon the death of the policy holder and also if they survive.
If you’re considering term life insurance, bear in mind there are multiple variations encompassing increasing term insurance, increasable term insurance, decreasing term insurance, renewable term insurance, convertible term insurance, family income benefit insurance and pension linked term insurance.
Increasing term insurance
Increasing term insurance is just like basic term insurance, except that, as the name suggests, the level of cover increases - typically alongside the premiums. This policy is suitable for long-term insurance as increasing prices reduce the value of a fixed level of cover over policy period.
Increasable term insurance
Increasable term insurance provides the option of increasing the level of cover either at specific intervals (such as anniversary of policy start date) or specific events (such as marriage or birth of a child). Premiums increase for additional cover, but they are based on your health at the start of the policy, even if it has since deteriorated.
Decreasing term insurance
Decreasing term insurance reduces cover year on year, with the policy holder usually requiring the cover for loan repayments such as a mortgage or to cover a potential inheritance tax bill.
Renewable term insurance
Renewable term insurance gives the policy holder the option to extend the insurance term when it comes to an end; the premium paid is the same at the start of the term, in spite of any deterioration in the policy holder’s health.
This may be beneficial to parents whose children stay in full-time education longer than originally intended. Alternatively if someone cannot afford the cover for the period they want, they could take out cover for a short period and extend it later with slightly high premiums.
It might be a financial jungle out there, but it’s not impossible to navigate your way through to financial security.
Resources:
Life insurance consumer research
http://www.which.co.uk/
About Rachel:
Rachel writes for the personal finance blog Cashzilla.
http://www.cashzilla.co.uk
Rachel eats a lot of Green and Black’s chocolate, particularly Maya Gold -it’s delicious and fair-trade too.
[tags]Life insurance, life assurance, personal finance, credit cards, personal loans, mortgages[/tags]
Life Insurance and the Law - A Layman’s Introduction
There are no laws in the UK that require a person to have life insurance. It’s an entirely voluntary insurance. About 40% of the UK’s working population are covered by life insurance either through their own policy or via an arrangement through their employer.
So the simple things first. You have to be a UK resident in order to buy a life insurance policy from a UK based insurance company. This is not a requirement laid down in UK law, but UK laws and tax arrangements make it impossible for a UK based insurance company to offer insurance to anyone other than a UK resident. But be aware that if, having taken out life insurance, you later live abroad, your policy will be invalidated. Naturally, invalidation does not apply if you are on holiday but if you have a short-term work assignment abroad you are well advised to inform your insurance company before you go.
All UK Insurance Companies are subject to UK Corporate Laws. However, there are special regulations that only apply to insurance companies. These control the value of the risks the companies take on in relation to their financial reserves. These regulations are designed to ensure that your insurance company will be in a position to pay if you claim.
The Data Protection Act 1998 is concerned with way all UK businesses store, safeguard and use the data they collect about people. This is particularly important within the life insurance industry as the companies store significant amounts of very personal information about you - including your age, health record and life style. One of the key provisions of the Data Protection Act says that if a business wishes to pass on your information for marketing purposes, the business collecting the data must tell you of its intention and give you the opportunity of refusing permission for your data be used in that way. Incidentally, all reputable web sites selling life insurance will have a “Privacy Statement” which tells you how they handle your information and how it is used.
The Financial Services and Markets Act (2000) is the most important piece of legislation affecting the promotion of financial services in the UK including life insurance. The Act is highly complex but is primarily concerned with protecting you the customer. The implementations of the Act is overseen by the Financial Services Authority (FSA). The FSA regulates all forms of the promotion of financial products and services including the activities of financial and mortgage advisors in the UK. Their aim is to ensure you receive clear professional advice that reflects your personal circumstances. They also ensure you have a route to compensation should it be proved that you received inadequate or poor advice.
For the layman, the FSA’s biggest impact is reflected in the advisors they talk to. The FSA seeks to ensure that all financial advisors are trustworthy and competent which includes being well supervised and well trained, and that any advice is given in your best interests. The FSA also ensures that you are given full and accurate information about the products you are being advised to buy both before and after you have bought them. They also closely oversee the organisations that actually create the financial products.
In fact everyone and every organisation giving financial advice in the UK must be authorised by the Financial Services Authority.
However, the Act makes a distinction between financial products bought as a result of a recommendation from a Financial Adviser and “Execution Only” business. Execution Only is where a customer is wholly responsible for the selection of the investment and therefore the financial advisers’ sole responsibility is to process the purchase efficiently. Under Execution Only, the Adviser bears no responsibility for the products suitability for the clients needs.
You should be aware that many of the web sites promoting life insurance operate on this Execution Only basis. However, most web site operators provide extensive information to enable the client to make an informed choice. Sometimes the information is published on the web site and sometimes provided during a follow-up telephone call. Either way, within their Terms of Business the web site will have to tell you on what basis they provide financial services and as part of your application, you will normally be required to confirm that you have read those Terms.
Those Terms of Business will always include details of a complaints procedure. In outline, if a customer wishes to complain, then the customer must detail the complaint in writing and send it to the Compliance Officer for the business employing the advisor. That business then has to investigate the complaint and reply to the customer in writing. If the Compliance Officer upholds the complaint, and the customer has suffered a financial loss as a result, then the business must agree a financial settlement with the customer. Ultimately, if the customer has suffered financial loss and cannot accept either the organisations’ conclusions or their proposed financial settlement, then the situation can be referred to the Financial Ombudsman. The Financial Ombudsman’s service is free to the customer and they are wholly independent. The Financial Ombudsman’s decision is usually binding on both parties.
The other central piece of protection for the customer is the Financial Services Compensation Scheme. This provides the customer with a level of protection if a financial organisation regulated by the FSA becomes insolvent and cannot properly meet its financial responsibilities to its clients.
Postscript
The above information represents the legal aspects we think you will have found most useful. The information is neither definitive nor exhaustive but is simply an introduction for the layman.
If you would like more detailed information relating to the regulation of life insurance companies, insurance brokers, or financial advisers you should visit the Financial Services Authority’s web site at:
www.fsa.gov.uk
Michael Challiner has 15 years experience in financial services marketing at senior level. Michael now works as the editor of Brokers Online Life Insurance
Futher reading Life Insurance Home Page
Futher reading Life insurance topics
[tags]life,insurance,law,compliance,fsa,financial,service,authority,company[/tags]
Business Management with Effective Investment Plan
Too many business players in the market but there’s an urge to remain in the competition through out and rise above all. Managing a business firm is not a child’s play. Learn how to effectively manage a business by investing in it rightly.
Invest right and reap rich!
Business loans are offered to any one wanting to kick start a business newly, expand an old one or simply revamp it. Just a small step towards investment enables a big leap towards profit. Loans for business are commonly available in two forms, one without security and the other with security.
A secured business loan throws open a gamut of benefits to a borrower. A lion size loan, lower Annual Percentage Rate (APR), smaller payments, longer repayment and an element of flexibility attached to the loan package.
Moreover, there’s no additional collateral required. A borrower can pledge his own business firm, release its tied up equity and obtain loans for whatever purpose that best suits him.
On contrary, unsecured business loans suits best a borrower who is unable to pledge any collateral due to the absence of a collateral itself, or the failure to do so may hold him back. However they don’t enjoy the same benefits as the secured loan.
It is placing of collateral that radically reduces the element of risk for the creditor and makes loan approval to the debtor at competitive rates.
Business loans are most commonly used for:
Setting up a plant
Purchase a property
Relocation of a firm
Business expansion/revamp
Updating with the new technology
Repair or purchase of heavy machinery
Investment in working capital such as human resources
Pay back wages/salary
Consolidate old business debts
Business debts can be managed easily. Two small business loans when pooled together turns out to be cheaper. With consolidation of two or more loans into one loan, a debtor enjoys a lower interest rate as the loan size is bigger. It serves best when unsecured loans are consolidated together into a secured loan. Ensure that there are no early redemption charges to be paid for closing loans early to consolidate it.
Small step towards investing enables a big leap!
For more details on the type and benefits of varied business loans, get adequate information from www.business-expansion-loan.co.uk
[tags]business services, business to business, business loan, business insurance, small business loan,[/tags]
