photo credit: Alex E. Proimos

You have the right to switch insurance companies any time you want. Even if you have an open claim with another insurance company, you can elect to switch your coverage. Keep in mind that your current claim will not transfer to the new insurance company, though, and your old insurer will still be the one that handles the claim until it is either settled or completely denied coverage.

A good example of why you might switch companies with an open claim would be if your current insurer is delaying settlement on the claim. If you feel as though you are not getting the treatment you deserve from your insurance company, especially if you feel as though a delayed settlement is holding you back, then it is within your rights to get free insurance quotes from other companies and then notify the company you intend to get insurance elsewhere.

Even if the switch goes into effect while the old claim is still open, that insurance company is responsible for handling the claim until it has been resolved. They cannot default on a settlement just because you are no longer insured by them, unless there is some reason the claim would have been denied anyway, such as fraudulent information in the claim. You have already paid the insurance premiums for all claims that are in progress, but you will still be responsible for any deductibles or other predetermined out of pocket expenses.

Switching companies can save you money. If you find a company which offers you more or larger discounts, switching companies could make immediate financial sense. Shop online to compare prices between leading competitors, and then research the financial reliability of the insurer in our insurance company ratings section to make sir that the long term outlook for your chosen insurer is favorable.

You do not have to be afraid that switching companies will cause unwanted repercussions. For the insurance companies, a customer switching to another company is a regular occurrence, and they have no reason to try to force you to stay with their company against your will. There are no added fees or penalties for changing companies, and the only role your old insurer will have to play is to cancel the overage when your new policy goes into effect.

If the risks are manageable, insurance companies will write coverage for almost anything. Sometimes, even when the risks have carefully weighed, a claim is made that hits the record books. Here is a short list of the 6 most expensive insurance claims ever filed for different categories, which will certainly make any claims you’ve filed yourself pale by comparison.

The purpose of insurance is to protect the owner of the policy from financial losses in the event that something happens to the property being insured. Because what makes a financial difference for person or company is not the same as it is for another, there is a long list of unusual things which have been insured to protect the interests of their owners. The 6 presented here are among the most unusual, but they are only the top of the list and there are thousands of such items insured right now, all over the world.

9/11
The insurance costs related to 9/11 have still not been completely tallied or even paid out. One thing that is certain is that the collapse of the World Trade Center is going to be one of the most expensive insurance claims ever filed. After all, this was not a single claim, but several thousand claims of many different types. Nothing in recent history, with the exception of actual warfare, has been as costly as the attack on the World Trade Center.

The Japanese Tsunami and Earthquake
In a matter of a few hours, an offshore earthquake in Japan resulted in the second highest level of insurance claims ever made. Tens of thousands of people were displaced, entire villages were leveled, and a nuclear reactor was damaged to the point of becoming completely unstable. It will still be years before the final total is available, but there is little doubt that this natural disaster will take its place in the history of insurance claims.

Australia’s Firestorm
The string of fires and other natural disasters which hit Australia in 2008 and 2009 can be grouped together as the third most expensive insurance claim ever filed. Thousands of homes were destroyed, commercial properties razed and real estate turned into a wasteland. While the average single claim was only around $40,000, the sheer number of claims filed raises the total costs to staggering levels.

High Cost Automotive
The number 4 spot goes to a single vehicle car insurance claim made in the UK in 2007. A driver was insured to test a prototype vehicle on a closed track and subsequently crashed the car, valued at $810,000. When the dust settled and the settlement was reached, the car owner received a total claim payout of over $300,000.

The Cost of Art
Some of the largest policies in the world exist to cover art, specifically one of kind paintings and sculptures that would be a loss to the entire world if they were to disappear. The fifth most expensive claim on record was for one such piece of art, a painting by Joseph Mallord William Turner, which was insured for a mind-boggling $38 million dollars.

High Priced Pet
Pet insurance is not a subject you would expect to rank as one of the biggest insurance payouts of all time, but a $22,000 claim for a cat’s renal surgery was paid in 2010. Not only is the single largest pet insurance claim ever filed, the cat in question was an ordinary mixed breed with no special traits or characteristics aside from the love of its owners.

For insurance companies, there are two ways to stop providing coverage on your insurance policy. The first method is to cancel the policy, and the second is to decide not to renew it. The difference between these methods is as big as the difference between night and day, and how much trouble you will have getting replacement insurance will depend on which method was used to end your current coverage.

All things considered, it is much easier to overcome a non-renewal notice than a cancellation. If your policy is canceled, you may have difficulty finding another company who will write you a policy. If your policy is non-renewed, there are no negative connotations to overcome, so all you have to do is shop around for new coverage and compare insurance quotes. If the new insurance company asks why you are changing insurers, you can either explain that your policy is not being renewed, or fudge and tell them that you are no longer happy with the company you have been doing business with.

Non-renewal simply means that the insurance company has chosen not to renew your policy. You will have to shop for a new policy before the old one is terminated, but you may not have to pay higher rates. As long as you have new insurance in place before the old policy comes to an end, including notifying the DMV of your new insurance carrier (for car insurance), you may not suffer any other consequences of the insurance company’s decision. However, notifying the DMV is going to be crucial. If your current insurer cancels your policy, they will notify the DMV of the policy termination as soon as the termination becomes effective, and failure to secure other coverage before that time could result in your vehicle registration or driver license being suspended until you have provided proof of insurance to the DMV.

A cancellation works differently. Your policy can only be canceled if you miss payments, or get so many tickets that your license is suspended or revoked. Having a cancellation means that other insurance companies will take a closer look at your credit and driving histories and you can expect to pay higher premiums. Having a policy canceled is extremely bad, from the insurance point of view, because it indicates that at least one insurance company no longer thinks you are worth the risk to write insurance for.

photo credit: Jason Hargrove

One way to manage the cost of your premiums is to raise or lower your deductibles. Higher deductibles mean lower premiums. But there is a balance between saving money and putting yourself in financial jeopardy. Adjusting your deductibles according to your personal needs is a tool you can use to leverage your ability to buy insurance.

The important thing to keep in mind is that you must pay your deductible before the insurance will cover the rest of a claim. So if you set the deductible to a high amount, such as $1500, then you will have to pay that amount out of pocket before your insurance will do anything. It may sound tempting to set a high deductible in order to get lower premiums, but if you set them too high, your insurance will not be much help unless have the cash available to pay them.

On the other hand, if you have very little cash flow you can opt for having low deductibles or none at all. Your premiums will increase as the deductible goes down, but it may be more affordable to pay higher premiums than to have to allocate a portion of money to always be available in an emergency. Both higher and lower deductibles work for you, they just work for you in different ways.

Another thing to consider is the age of your vehicle. If you are driving a 10 year old sedan, the insurance company is not going to offer you a high cash value if the car is totaled, and many relatively minor damages could push the car’s value beyond the total limit. To save money and accomplish the same thing, set your deductibles high to reduce premiums and plan on replacing the vehicle with another older car if you get into an accident. Also, be sure to compare insurance quotes on a regular basis (at least every 6 months) to see if you can save by switching insurers.

photo credit: Alan Cleaver

There are a lot of technical legal and insurance terms that are confusing. Subrogation is one such term. Subrogation is s a common practice for insurance companies; it is a practice which has very limited use in other fields. So what is subrogation? In essence, subrogation is the act of an individual or agency exercising the rights of a client in an attempt to recover lost funds. If you have ever filed an auto insurance claim against another driver, and your insurance company settled the claim; that was subrogation in action.

When an insurance company is successful in a case like this, they keep all the money that is collected to offset the payments that were made to you. Once they reach that limit, any money over and above that is distributed to you. Sometimes companies will charge a small fee for the act of collecting these fees on your behalf. Check the details of your policy, or ask your insurance agent about the details of how they work through this process.

For you, the policyholder, the whole process of subrogation, can seem to be transparent. Your insurance company is probably very familiar with the process. They do the behind the scenes work that you don’t see. They will pay out a claim against another insurance company, and secure their means to collect the money at a later time, this gets the claim into an acceptable state of due management. While all this is going on, the policyholder is probably unaware of all these moves that have been taking place, which is as it should be.

When you sign your insurance policy, you are basically giving your insurance company permission to enact subrogation on your behalf for these types of situations. As we covered earlier, for the most part policyholders are not even aware of all the things that are going on in regard to subrogation. The main thing for most of us is that we get paid on the claim, which is exactly what happens. Leave the details to your insurance company; they know what they are doing when it comes to subrogation.

photo credit: Dina Regine

The purpose of insurance is to protect the owner of the policy from financial losses in the event that something happens to the property being insured. Because what makes a financial difference for person or company is not the same as it is for another, there is a long list of unusual things which have been insured to protect the interests of their owners. The 11 presented here are among the most unusual, but they are only the top of the list and there are thousands of such items insured right now, all over the world.

1. Hollywood Hottie
   Twentieth Century Fox once insured Betty Grables’ legs for a staggering $1 million each. This was during the 1940′s, and a million dollars was equivalent to about a billion dollars in today’s money.
2. Lottery Winner Insurance For Employers
   In the United Kingdom, employers can purchase insurance against having 2 or more employees quitting because they won the National Lottery. This policy would only pay out if the company lost at least two employees during the same drawing, which sets the odds of collecting on the policy astronomically high.
3. A TV Game Show
   The American game show, “Who Wants To Be A Millionaire,” is actually insured against the possibility of a contestant winning. When considered from that perspective, it isn’t a question of who wants to be a millionaire as it is a question of wants to pay out that much money.
4. Super Cigar
   The most expensive insurance policy issued for a cigar was written by Lloyd’s of London. The cigar in question in over 12 feet long and was made from more than 15,000 tobacco leaves. In case you are wondering, the cigar holds the world record for the longest cigar.
5. Alien Abduction
   It is possible to purchase insurance against alien abductions. Around the nation, more than $10 million dollars in alien abduction insurance has been written, with higher payouts available for people who are abducted frequently. Keep in mind, proving that you were abducted will be necessary before you collect.
6. Magic Finger
   Keith Richards, the guitarist for the hit rock band, The Rolling Stones, has his middle guitar finger insured for more than $1.5 million dollars. Not the whole hand, either, just a single finger.
7. The Voice that Sells
   Bruce Springsteen, well known for his unique vocal qualities, has his voice insured for an impressive amount. If something should happen to Bruce’s voice, he stands to gain an impressive $6 million.
8. To Catch a Monster
   The Loch Ness Monster has been an item of hot debate for decades, but there are those among who are willing to bet that it will never be found. The Cutty Sark Company has a waiting prize of $1.5 million for anyone who captures the creature alive. To cover their own losses, the company also has an insurance policy that will pay out if someone actually does come forward with Nessie on a leash.
9. Personal Vanity and Facial Hair
   Merv Hughes, an Australian cricket player, considers his mustache to be a trademark of who he is. For that reason, his famous handlebar mustache is insured in the amount of around $400,000.
10. Personal Vanity and Body Hair
    The American singer, Tom Jones, thinks of his chest hair as his most redeeming individual quality. Because it so important to his personal image, Tom has his chest hair insured for several million dollars.
11. Talk to the Hands
    Harvey Lowe insured his hands for $150,000 during the 1930′s. The reason for such a large policy, because that was a lot of money when the policy was written, is because Harvey was the world yo-yo champion and his hands had taken him there. He first began using a yo-yo when he was in his early teens and continued to do so for many decades.

photo credit: Gudlyf

Rather than talking to us in a normal, human language, insurance companies seem to derive joy from speaking in a strange language of acronyms. This language, if it can be called a language, can be confusing. You may feel like you need a translator. The following list will, hopefully, be a help to you if you should have to be involved in an insurance discussion.

A
ACSR – Accredited Customer Service Representative
ARM – Associate in Risk Management
ARM-P – Associate in Risk Management for Public Entities
ASOP – Actuarial Statement of Practice

B
BAP – business auto policy
BCBSA – Blue Cross and Blue Shield Association
BI – bodily injury
BOP – business owners policy

C
CFROI – cash flow return on investments
CRIS – Construction Risk and Insurance Specialist
CIC – Certified Insurance Counselor
CISR – Certified Insurance Service Representative
CPCU – Chartered Property Casualty Underwriter
CPIW / CPIM – Certified Professional Insurance Woman / Man
CCC – care, custody, or control (exclusion)
COBRA – Consolidated Omnibus Budget Reconciliation Act

D
D&B – Dun & Bradstreet
DEC – declarations page
DED – deductible
DI – disability income
DIC – difference-in-conditions (insurance)
DIL – difference-in-limits (clause)
D&O – directors and officers (liability insurance)
DSU – delay in start-up insurance
DOB – date of birth
DOC – drive other car coverage
DOD – date of death

E
EAP – estimated annual premium
EBIDDA – earnings before interest, dividends, depreciation, and amortization
EH&S – environmental health and safety
EP – earned premium
EPA – Environmental Protection Agency
EPD – expected policyholder deficit
EPL – employment practices liability
EPLI – employment practices liability insurance
ETB – engaged in trade or business

F
FAIR – Fair Access to Insurance Requirements
FALU – Fellow of the Academy of Life Underwriting
FCAS – Fellow of the Casualty Actuarial Society
FAP – family automobile policy (more commonly PAP)
FCPL – farmers comprehensive personal liability
FCRA – Fair Credit Reporting Act
FIRM – flood insurance rate map
FIRREA – Financial Institutions Reform Recovery and Enforcement Act
FMV – air market value
FTCAC – fire, theft, and combined additional coverage
FVD – full value declared

G
GAP – guaranteed auto protection
GCD – guaranteed cost discount
GIO – guaranteed insurability option
GKLL – garagekeepers legal liability (insurance)
GL – general liability
GVW – gross vehicle weight
GWP – gross written premium

H
HIAA – Health Insurance Association of America
HII – Health Insurance Institute
HIPAA – Health Insurance Portability and Accountability Act
HLDI – Highway Loss Data Institute
HLV – human life value
HCQIA – Health Care Quality Improvement Act
HPL – hospital professional liability (insurance)
HPR – highly protected risk (property)

I
IAHU – International Association of Health Underwriters
IFC – insured fixed-price cleanup
IIAA – Independent Insurance Agents of America, Inc.
IIAC – International Insurance Advisory Council
IIHS – Insurance Institute for Highway Safety
III – Insurance Information Institute
IRI – Industrial Risk Insurers
IRIS – Insurance Regulatory Information System
IRM – improved risk mutuals
ITI – Insurance Testing Institute

J
JCAH – Joint Commission on the Accreditation of Hospitals
JCAHO – Joint Commission on Accreditation of Healthcare Organizations
JSA – job safety analysis
JUA – joint underwriting authority; joint underwriting association
JV – joint venture

L
LAE – loss adjustment expense
LIAA – Life Insurance Association of America
LIAMA – Life Insurance Agency Management Association
LIRB – Liability Insurance Research Bureau
LLC – limited liability company
LMU – loss mitigation underwriting
LOC – letter of credit
LTA – lost time accident; long term agreement
LTD – long-term disability

M
MCO – managed care organization
M&D – minimum and deposit
MDO – monthly debit ordinary life insurance
MDRT – Million Dollar Round Table
MET – multiple employer trust
MFL – maximum foreseeable loss
MLE – maximum loss expectancy
MLEA – multiple line exclusive agent
MPCI – multi-peril crop insurance
MPL – maximum possible loss
MPP – managed premium plan
MVR – motor vehicle record

N
NAUA – National Auto Underwriters Association
NDI – National Disaster Insurance Association
NFIP – National Flood Insurance Program
NFIRA – National Flood Reform Act
NFPA – National Fire Protection Association
NIOSH – National Institute for Occupational Safety and Health
NRRA – National Risk Retention Association
NRT – National Response Team
NSC – National Safety Council

O
OCA – outstanding claims account
OCIP – owner controlled insurance program
OD – occupational disease
OL&T – owners, landlords, and tenants (insurance)
ORFS – operational risk financing securities
ORM – operational risk management
OSHA – Occupational Safety and Health Act; Occupational Safety and Health Administration
OSLR – outstanding loss reserves
OTC – other than collision

P
PAP – personal auto policy
P&C – property and casualty
PC – professional corporation
P&I – protection and indemnity (insurance)
PI – personal injury
PIA – primary insurance account
PIAA – Physician Insurers Association of America
PICA – Professional Insurance Communicators of America
PIP – personal injury protection
PMA – package modification adjustment
PMF – package modification factor
PMI – private mortgage insurance
PML – probable maximum loss

R
RAA – Reinsurance Association of America
RAM – reverse-annuity mortgage
RAROC – risk-adjusted return on capital
RARORAC – risk-adjusted return on risk-adjusted capital
RBC – risk-based capital
RBNE – reserved but not enough
RC – replacement cost
RTW – return to work

S
SAA – Surety Association of America
SCOPE – supervision, construction, occupancy, protection, exposure
SCPCU – Society of Chartered Property & Casualty Underwriters
SEC – Securities and Exchange Commission
SEMCI – single entry multiple carrier interface
S&P – Standard and Poor’s
SPAP – Special Personal Auto Policy
STD – short-term disability

T
TDB – temporary disability benefits
TDI – trade disruption insurance
TEFRA – Tax Equity and Financial Responsibility Acts of 1982 & 1983
TERI – targeted enterprise risk insurance
TIAA – Teachers Insurance and Annuity Association
TOLI – trust-owned life insurance
TOR – technique of operations review
TPA – third-party administrator
TRA – Tax Reform Act of 1984
TRIA – Terrorism Risk Insurance Act
TTD – temporary total disability

U
UEP – unearned premium
UJF – unsatisfied judgment fund
UIM – underinsured motorist
UIMV – underinsured motor vehicle
UL – umbrella liability; Underwriters’ Laboratories
ULAE – unallocated loss adjustment expenses
ULC – Underwriters Laboratories of Canada
UM – uninsured motorist
UMPD – uninsured motorist property damage
UMV – uninsured motor vehicle
UNL – ultimate net loss
U&O – use and occupancy

W
WC – Workers Compensation
WCRI – Workers Compensation Research Institute

Y
YRCT – yearly renewable convertible term
YRT – yearly renewable term

Automobiles are stolen daily. In more populated areas such as Los Angeles or New York, there are a greater number of cars, trucks and other vehicles taken than in rural and suburban areas but the incidents occur just about everywhere. Adopting routine automobile security tips such as removing your keys from the ignition or avoiding parking in secluded areas is the top way to keep your car or truck safe. The following are listings of the most stolen vehicles in the United States for different years. If your automobile is below, it is highly advisable to take excess precautions when parking.

Most Stolen Vehicles State by State

photo credit: Rich Moffitt

We all have words or phrases that set us off or cause discomfort. Your insurance company is no different when it comes to word or phrase sensitivities. There are some words that are so important to insurance companies that an incorrect usage of the word could result in non-payment on a claim or other confusion. It always helps to know the sensitive words, so you can approach any conversations with your insurance provider the right way.

Flood

There is water damage and there is a flood. A flood is when a body of water overflows its banks. If there is a rain storm and your house fills up with a couple of feet of water, this is not considered a flood, it is considered water damage. If you get this word wrong you could end up with a fraudulent claim. Consider the fact that most insurance policies don’t even include flood coverage. If you bring mention the word flood when it is not valid you could end up reducing your insurance company’s helpfulness on the claim.

Experimental

Insurance companies don’t like to hear about their policy holders being Guinea Pigs. Not that you ever would be, but it is best to avoid terms like experimental treatment, clinical trial or investigative procedure when talking to your insurance company. They just don’t like covering these types of practices. Be aware that if you misrepresent what is going on, you may end up with your insurance company unwilling to pay the costs associated with the procedure.

Opinion

Everyone is entitled to an opinion, but your insurance company is not interest in yours about the circumstance of your claim. They want the facts and the facts are just what you should give them. Before you can give them the facts you need to know them, so make sure you do know them. Insurance companies are very used to stories that shift and change and are always suspect of these stories. They are looking for facts that match up consistently with the evidence supplied. If you are interviewed and an agent asks for your opinion, it is best to decline and offer ‘just the facts’. Personal opinions and emotions can begin to jumble up facts about a case, and can result in a denial of payment.

Apologetic Phrases

Avoid unnecessary apologizing. If you immediately begin a profuse apology, the insurance company will become suspicious, and closer scrutiny of your case may ensue. Even if your apology is sincere it could be interpreted as an admission of guilt or blame. Insurance company employees tend to perk up their ears when they hear apologies that may be masked admissions of blame.

Whiplash

Whiplash is a word that you should avoid using in discussions with an insurance company, at all costs. Quite simply, you should never utter this word. Whiplash can be associated with a diverse range of back or neck injuries that cost insurance companies a lot of money. There are legitimate cases of whiplash, but there are also a lot of bogus claims filed and people tend to throw the word out as a catch-all for any injury, real or fabricated. You can be sure that mentioning the word ‘whiplash’ will result in a delay of payment on your claim. It will probably also trigger a thorough investigation into the case until all the evidence can be completely evaluated. You may find yourself in a process that drags on for years or is completely rejected, if you use the word ‘whiplash’ with an insurance representative.