TR Insurance Group Newsletter

TR Earns Mutual Benefit
Inner Circle Recognition

Mutual Benefit's CEO, Steve Sliver, recently announced that TR Insurance Group, Inc. earned Inner Circle recognition for 2008.

The agency is one of only eleven among Mutual Benefit's agency force to achieve Inner Circle status for 2008.

This is the fourth time that TR has qualified for the award, an honor that Mutual Benefit presents annually to acknowledge outstanding agent performance, recognizing those who have established a consistent record of profitable growth along with superior customer satisfaction. The agency is one of only eleven among Mutual Benefit's agency force to achieve Inner Circle status for 2008. Mutual Benefit Group markets its insurance coverage through a network of more than 250 independent agents in Pennsylvania and Maryland. The 2008 Inner Circle qualifiers will be recognized by Mutual Benefit at a banquet on April 24, 2009 which will be held at the Bedford Springs Resort in Bedford, Pennsylvania.

Your Jewelry May Sparkle,
But Is It Underinsured?

Diamonds may be a girl's best friend, but the unfortunate truth is that sparkling gifts of the most expensive kind can come with an unexpected price, especially during times of economic downturn. Each year, according to the US Federal Bureau of Investigation, the jewelry industry reports over $100 million dollars worth of lost or stolen jewelry. Surprisingly, the vast majority of those valuable articles are often underinsured.

Diamonds and other items that sparkle aren't alone, either, because the truth is, most homeowners or renters insurance policies provide only a basic level of personal property coverage - often in the $1,000 to $1,500 range - for jewelry and furs. People with higher-valued items should secure additional coverage to ensure that valuables are appropriately protected, such as Scheduled Personal Property. Fine art can be covered as a separate class with losses valued at agreed value. Other items, such as silverware, should be insured for market value, which is the cost for replacing items at the time of the loss.

Whether an item of jewelry is a recent gift or a family heirloom, owners can ensure that it's appropriately protected by taking the following steps:

Have the item appraised. Locate a professional appraiser and ask for a detailed
description and value of the item - in writing. Store the appraisal in a safe place with other valuable papers.
Contact an agent or insurance provider, whenever a valuable item is acquired, to help make sure it's covered in the event of a theft.
"Refresh" appraisals every two or three years. Markets, such as those for diamonds and silver, tend to fluctuate. Have items reappraised, especially those with individual values of more than $2,500.
Finally, to ensure that property is properly protected, people should consider taking an inventory of their valuables as a proactive measure. Having an inventory on hand has been proven to be helpful in the event of a theft, because without it, it's easy to overlook that something's missing until days or weeks later, and at that point, the trail is colder. Inventories also help to ensure that recovered valuables make it back where they belong.

New COBRA Premium Subsidy

The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Eligible individuals pay only 35% of their COBRA premium and the remaining 65% is reimbursed through a tax credit. The premium reduction applies to periods of health insurance coverage beginning on or after February 17, 2009 and lasts for up to 9 months.

COBRA generally does not apply to plans sponsored by employers with less than 20 employees. Many states have similar requirements for small plans providing benefits through an insurance company. The premium reduction is available for plans covered by these state laws. At press time, Pennsylvania did not have requirements for small plans that would extend coverage to employers with fewer than 20 employees, however such legislation has been proposed. An assistance-eligible individual is an employee or family member of his or her family who is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009, elects COBRA coverage and is eligible for COBRA as a result of an employee's involuntary termination between September 1, 2008 and December 31, 2009. Those who are eligible for other group health insurance coverage or Medicare are not eligible for the premium reduction. Individuals who were involuntarily terminated between September 1, 2008 through February 17, 2009 who did not elect COBRA when it was first offered or did elect COBRA but are no longer enrolled, have a new election period. This election period begins on February 17, 2009 and ends 60 days after the plan provides the required notice. If an individual's modified adjusted gross income for the tax year in which the premium assistance is received exceeds $145,000 (or $290,000 for joint filers), then the amount of premium reduction during the tax year must be repaid. For tax payers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers), the amount of premium reduction that must be repaid is reduced proportionately. ARRA provides a great benefit to workers who have lost health insurance coverage since September 1, 2008. It also requires changes in administration procedures for companies subject to COBRA. More information is available at the US Department of Labor website at www.dol.gov/esba/cobra.html

Agency Notables

Congratulations to Heather Frederick who has recently completed all five courses for her CISR (Certified Insurance Service Representative) designation.

Randy and Debbie Riegner attended a James K. Ruble Graduate Seminar in Baltimore, MD in March. This satisfies annual education requirements for their CIC designations.

SPRING 2009

5 Tips to Protect Yourself from Credit
and Identity Theft

Today's fast paced world of electronic convenience has made identity theft an ever-increasing problem. You probably know someone who this has happened to - it may have happened to you. It can be a nightmare - and an expensive and time consuming one at that. There are simple actions you can take that can help to protect your identity and your credit rating:

While no amount of caution can be totally fool-proof, being aware of the potential identity theft possibilities and of how to protect ourselves - even if we fall victim - are simple steps to give us added defense.

Coverage for Vacant Properties

Current economic conditions have increased the number of buildings that are vacant and the length of time for vacancy. These conditions affect primary homes, residential rental and commercial buildings. Policy conditions in the various forms that provide property insurance for these exposures limit coverage when properties are vacant. The most common forms for homeowner's insurance are the 1991 and 2000 version of the Insurance Service Office (ISO) Homeowner's policy. Both forms state that there is no coverage for vandalism and malicious mischief if the home is vacant for more than a specific number of consecutive days immediately before a loss. The 1991 version says 30 days and the 2000 version says 60 days. Secondary homes, seasonal homes and residential properties rented to others are often covered under a dwelling fire policy. The most common dwelling forms are the 1988 and 2002 versions of the ISO Dwelling policy. These forms say that there is no coverage provided for vandalism, malicious mischief, theft or attempted theft if the dwelling has been vacant for more than a specific number of consecutive days immediately before the loss. The 1988 version specifies 30 days and the 2002 specifies 60 days. All of these forms indicate that a dwelling being constructed is not considered vacant.

Commercial properties are often covered by an ISO Commercial Property form or Businessowner's policy form. These forms have similar language with regard to vacancy and the restrictions are more severe than the homeowner's and dwelling policies. If a policy is issued to a tenant, the property is considered vacant when the unit or suite rented or leased to the tenant does not contain enough business personal property to conduct customary operations. When the policy is issued to the owner or general lessee, building means the entire building and the building is considered vacant unless at least 31% of its total square footage is rented to a lessee or sublessee and is used by the lessee or sublessee to conduct customary operations or used by the building owner to conduct customary operations. If the building where the loss or damage occurs has been vacant for more than 60 days before the loss or damage occurs, the company will not pay for any loss or damage caused by any of the following: vandalism, sprinkler leakage (unless you have protected the building against freezing), building glass breakage, water damage, theft or attempted theft. The vacancy provision, however, goes on to say that losses for any other Covered Cause of Loss are reduced by 15%. This can be a severe limitation.

Company forms vary and you need to refer to the form that provides property coverage for your building in order to understand the policy conditions and limitations that apply. Endorsements can be requested from the insurance company to afford the proper coverage. If the company is not willing to provide these endorsements, vacant property policies can be used to provide the proper coverage. Unfortunately, vacant property policies are often more expensive and provide additional limitations. Contact us if you have concerns regarding vacancy provisions that impact your properties.

Term Life Insurance Rates on the Rise

Over the years we have reported reductions in term life insurance rates and we have indicated that these rates were at historic lows. We told you there was no better time to buy term life insurance coverage. We represent all the top companies and very competitive rates are still available for 10, 15, 20, 25 and 30 year level premium term life insurance policies. In the past four months, at least four major carriers have implemented rate increases to their term life insurance plans. Economic conditions and investment performance have provided challenges for some life insurance companies and additional term life insurance rate increases can be predicted. There may be no better time than now to purchase term life insurance coverage. Contact us for a customized proposal or visit our life insurance page and select online term life insurance quotes. After entering basic information, you can use the health analyzer to predict the rate class that you would qualify for based on build and health history.

Aetna and Assurant Health Introduce Additional Health Insurance Options

Economic conditions and a tightened job market have created additional needs for health insurance. In some cases these needs are temporary and in other cases the needs are for an indefinite period. Aetna, Keystone, Golden Rule/United Healthcare and HealthAmerica have offered comprehensive and high deductible plans to meet these needs. Assurant Health and Golden Rule offer short term medical plans with monthly and single pay options. Short term medical coverage is available for periods of 6 months or 12 months. Recently, Aetna has expanded offerings to include higher deductible HMO plans and limited benefit plans. Assurant Health has expanded their short term medical plan to include Health Saver Limited Benefit Plans. The goal of these new options is to make basic health insurance more affordable for those in need. There are now dozens of options available that can be tailored to meet individual needs. Contact us for complete information on options available to meet your health insurance needs.

On-line Access for Independence Blue Cross and Aetna Members

If you are a member of an Independence Blue Cross or Aetna health insurance plan, either in a group or as an individual/family, you can access your account on-line. Through IBC's IBXpress and Aetna's Navigator, you can view benefit information, check claim status, request ID cards, change your primary care physician, manage your prescriptions, find network providers, obtain information about the special offers for discounts on health products and see suggestions for healthy life styles. For example, IBC currently offers cash back of up to $25 for each bicycle helmet purchased for yourself or a covered dependent. For Keystone and Personal Choice members, go to www.ibx.com and register for access at IBXpress. For Aetna members, go to www.aetna.com and register for access in the Member Log In section. Set up one user name and a password to access accounts for yourself and for your dependents.