Insurance news: Progressive launches its pay-as-you-drive plan in RI, some cautions about life settlements, and a gruesome insurance fraud case

Progressive launches its pay-as-you-drive auto insurance program, called MyRate, in Rhode Island. From Business Wire:

MyRate uses Progressive’s patented technology to put consumers in control of their auto insurance rates. Drivers who choose to sign up for MyRate receive a device that plugs into a port in their car and measures how, how much and when the car is being driven. Cars driven less often, in less risky ways, and at less risky times of day can receive a lower premium.

Although Progressive's version monitors your actual driving habits, conservationists tend to like pay-as-you-drive plans on the theory that they encourage people to drive less. (Yes, some auto insurance is mileage-based already, but this would be much more precise.) Others view such "black box" technology as the equivalent of having Big Brother sitting in your back seat.

 From Smart Money: The trade-offs of selling your life insurance. (i.e. life settlements). Beware of unexpected taxes, the article warns, and you may not be able to find other life insurance.
 
Reuters reports that China, too, is trying to figure out how to expand affordable health coverage. Says a U.S. analyst re: China's effort: "You keep hearing the word `basic.'"
 
And grim news out of CA: A Riverside County man, the Mercury News reports, "has been sentenced to life in prison without parole for killing his wife in an effort to collect $1.3 million from life insurance policies."

Insurance news: Insurance jobs continue to decrease, lengthy NYT look at cheaper medicine, and Ford unveils inflatible seatbelts

A.M. Best (via Insurancenewsnet.com): Insurance jobs have fallen for the 12th straight month, declining by 3,400 jobs nationwide in October.

South of Seattle, the odds of severe flooding below the Howard Hanson Dam are now believed to be about 1 in 25, rather than the earlier 1 in 3. The Army Corps of Engineers and contractors have been working feverishly to strengthen a weakened dam abutment.

The Associated Press (via the Seattle Times) reports that House Democrats don't yet have the votes to pass their proposed health-system overhaul, and may push the vote back until early next week.

The New York Times editorial page takes a dim view of House Republicans' counter to the Democrat's health reform plan:

Here is the first thing you need to know: It would do almost nothing to reduce the scandalously high number of Americans who have no insurance. And it makes only a token stab at slowing the relentlessly rising costs of medical care.

The AP also has an interesting Q&A with 84-year-old Hank Greenberg, the former CEO -- during far less turbulent times -- of insurance conglomerate American International Group (AIG). From it:

This whole theory of too big to fail should be tested and examined. I don't think we've had a dialogue on that subject. It seems to me that they are very selective on who you permit to survive and who you permit to fail. And if the cost of survival is so huge, I don't see what you gain from it. We have a Chapter 11 (bankruptcy), which permits a company to declare Chapter 11, and be reorganized and go back into business again. That to me seems what we've lived with for many years and I don't see why it's not something that has been used more.

If you've got the time, take a look at this extensive NY Times Magazine story about efforts to make medicine less costly -- and it starts with an interesting revelation about the history of medine.

And here's your reward for reading this far: the Detroit Free Press reports that Ford, starting with the 2011 Ford Explorer, will start offering new inflatible seat belts on its vehicles. See the photo.

"Everything but marriage" law for domestic partners is leading in the polls: What would it mean?

Referendum 71, which would uphold the state's "everything but marriage" law for domestic partners, is holding a narrow lead in voting statewide. The results won't be certified for weeks, but we've prepared some information about its effects if it's upheld.

Here are some of the critical questions:

Will my domestic partner now be covered by my health insurance?

Not automatically. The law would require your insurance company to offer you the option to cover your state registered domestic partner under your policy, but you will need to check with your insurance company to find out how to obtain this coverage for your partner. You may need to wait for an "open enrollment" period when new enrollments are allowed. These open enrollment periods generally happen at set times of the year, often in January or fall. (Note: Some employers already cover domestic partners, and have for years.)

Is my domestic partner automatically covered by my auto and home insurance?

If the law takes effect, your state registered domestic partner would be considered your family member, the same as a spouse. You would probably need to contact your insurance companies to inform them of your state registered domestic partnership. You would also need to find out by reading your policies or asking your insurance companies how your coverage applies to your registered domestic partner. For example, many auto insurance policies cover you and any family members who drive your car.

For more on these sorts of questions, see this webpage that we put together.

For a more detailed look at what the law would require from insurers, please see this FAQ for companies.

Better flood prediction in the Green River Valley

The Office of the Washington State Climatologist has two stations near the Howard Hanson Dam that report real-time precipitation. It's also going to plot current and future rainfall compared to past years.


What's next for the Pacific Northwest? According to their site, El Nino is back and we can expect a 33 percent chance of above normal temperatures. Sounds good to me. Want more fun weather facts? Click here to see which Washington city had the most rainy days in a row.

Insurance news: Avg car premium $1,655, back and forth over health reform, and more rain gauges for WA's Green River Valley

Lots of insurance news this morning:

What's the average car insurance premium? $1,655, says this report from Reuters. (The figure comes from carinsurance.com.)

A new Senate analysis suggests that health insurers' oft-cited figure of 87 cents of every premium dollar being spent on medical claims is too high. From the New York Times: "Instead, as little as 66 cents of each dollar paid in premiums goes toward doctor and hospital bills, while the rest covers administrative expenses, marketing and company profits, according to the analysis."

ABC News reports on a Journal of Public Health estimate that kids without health insurance are 60 percent more likely to die than those with coverage.

In Hartford, insurance company whistleblower Wendell Potter continues to blast the industry's opposition to health insurance reform.

GA's insurance regulator has fined UnitedHealthcare and subsidiaries $750k.

Health care back and forth: GOP in House to roll out health options this week, versus Democrats say House bill cuts premiums for many.

And more back and forth: Projected costs for health reform grow (could exceed $900 billion price tag, some estimates say), while Indiana University med school professor Aaron E. Carroll offers up "A little perspective on the cost of health care reform," with this chart:

(source: Huffington Post)

In Forbes, Univ. of Chicago professor Tomas Philipson suggests that the public option is a solution looking for a problem.

And, here in Washington, the Seattle Times reports that workers are installing more rain gauges and other sensors to better predict potential flooding in the Green River Valley.

Natural disaster insurance: Do you need it?

This report, from the NY Times, suggests that the answer is probably yes.

It helps steer you through the factors to consider re: flood, earthquake, fire and hurricane coverage (is your home on bedrock? On fill? etc.) and whether your current coverage is likely to pay for such events. (Usually no.)

Selling health insurance across state lines

The Senate's health reform bill includes a provision to allow the sale of health insurance across state lines. Some argue that it could increase competition and make health insurance more affordable.

The Wall Street Journal weighed in on the subject back in August with an Editorial that said, in part:

Interstate competition made the U.S. one of the world's most efficient, consumer driven markets. But health insurance is a glaring exception. When the competition caucus in Team Obama has to look for Plan B, this is it.

But if you allow for all health plans to be sold across state lines, which state is responsible for enforcing consumer protections? Are states with stronger protections, such as Washington, now forced to accept the standards of states with fewer protections? If a consumer is harmed or wants to file a complaint, do they still call their own insurance commissioner or the state where the plan is based?

Allowing plans from other states to be sold might be a good idea, but standards would need to be set or we could face a race to the bottom. Last year, the Washington state Legislature ordered our office to write a report on another part of this debate -the feasibility of forming an interstate compact to sell health insurance.

Read the full report here.