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Erie Insurance Group: Top 15 Cool Facts

In today’s post, I am going to educate you about Erie Insurance Group. I want to share some really cool Erie Insurance Group facts I found online about the company that I know you will find interesting.

Depending on where you live, you may, or may not, have heard of Erie Insurance Group. Prior to researching this post, I was not familiar with the company myself. However, after doing some research online, I am more than impressed. I know you will be too!

Cool Facts About Erie Insurance Group

# 1 How Many States It Serves

Erie Insurance Group is more of a regional insurance company. It does not offer insurance in all states.

Serves 12 states— Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin—and the District of Columbia.

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 2 When Was it Founded?

This company is time-tested and has been around almost 100-years now.

Was founded in 1925 by H.O. Hirt and O.G. Crawford.

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 3 How Many Policies Does It Have Issued?

Based off the current 2018 US population of about 327 million people, approximately 1 in 56 people have some type of insurance policy with the company.

Has more than 5.8 million policies in force for auto, home and business insurance.

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 4 How Many Life Insurance Policies Are in Force?

Has more than 339,000 life, annuity and disability income policies in force.

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 5 How Many Independent Insurance Agents Are There?

Works with more than 12,400 independent insurance agents.

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 6 How Many Employees Are There?

Erie Insurance Group is a large employer. They create a ton of jobs, which is great for the economy.

Employs over 5,300 employees who work at the company’s Home Office in Erie, Pa., and in the field offices. The Home Office alone employs more than 3,000 people.

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 7 How Does It Rank with Other Insurance Companies?

These rankings below are VERY impressive to me.

The 15th largest property/casualty insurance group based on policyholder surplus (Best’s Aggregates and Averages Property/Casualty 2018).

The 16th largest property/casualty insurer in the United States based on total lines net premiums written (Best’s Aggregates and Averages Property/Casualty 2018).

The 11th largest auto insurer and 9th largest home insurer in the country based on direct premiums written (Best’s Insurance Reports 2018).

The 12th largest business insurer in the country based on direct premiums written, commercial multi-peril writers (Best’s Insurance Reports 2018).

The 2nd largest auto insurer in Pennsylvania (A.M. Best).

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 8 Fortune 500 Ranking

The Fortune 500 Ranking is a list of the 500 largest corporations in the United States, in terms of revenue.

In 2003, Erie Insurance made its debut on the Fortune 500 list. It currently ranks at number 378.

Source: https://en.wikipedia.org/wiki/Erie_Insurance_Group

# 9 Ranking as Life Insurance Company

As of 2016, there were more than 5,900 insurance companies in the USA.

Erie Family Life ranks as the 138th largest life insurance company based on admitted assets (Best’s Review 2017).

Erie Family Life is the 23rd largest life insurance company based on net premiums (Best’s Insurance Reports 2017).

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 10 A.M. Best Ranking

ERIE’s property/casualty companies are rated A+ (Superior) by A.M. Best, a global credit rating agency with a unique focus on the insurance industry. Best’s Financial Strength Rating is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations.

Source: https://www.erieinsurance.com/news-room/fact-sheet

# 11 The Achievement in Customer Excellence Award

In 2017, Erie Insurance earned the ACE (Achievement in Customer Excellence) Award in the Voice of the Customer category for claims service for the second consecutive year.

Source: https://en.wikipedia.org/wiki/Erie_Insurance_Group

# 12 Erie County

In 2018, Erie Insurance became Erie County, Pennsylvania’s largest employer with more than 2,800 employees locally.

Source: https://en.wikipedia.org/wiki/Erie_Insurance_Group

# 13 Corporate Equality Index

Erie Insurance received a perfect score of 100 percent on the 2017 Corporate Equality Index, a national benchmark on corporate policies and practices related to LGBT workplace equality.

Source: https://en.wikipedia.org/wiki/Erie_Insurance_Group

# 14 It’s Publicly Traded

Erie Insurance Group is a publicly traded company with a stock symbol of ERIE. When I looked on July 11, 2019, it was trading at $264.07.

*** Keep in mind this number constantly fluctuates, just like any other stock.

# 15 Annual Revenue & Profit

2018 revenue was $8,030.7 billion with a net profit of $686.3 million.

Source: https://fortune.com/fortune500/erie-insurance-group/

Final Thoughts

There you have it folks. These are 15 cool facts about the Erie Insurance Group. What is your favorite fact and why? Leave a comment below to let us know what you think. I look forward to hearing from you.

Liberty Mutual Insurance Company: 30 Cool Facts

In today’s post, I am going to share 30 cool facts about Liberty Mutual Insurance Company. Researching this post was very enlightening. I learned so many cool facts I never knew about the company. I hope you enjoy them as much as I did.

Liberty Mutual Insurance Cool Facts

Top 30 Cool Facts About Liberty Mutual Insurance

Listed below are 30 cool facts about Liberty Mutual Insurance Company. These facts are listed in no particular order. Please know that the source of each fact is properly cited.

# 1 Their Original Name

Liberty Mutual started in 1912 under the name “Massachusetts Employees’ Insurance Association” (MEIA). The name was changed in 1917 to the Liberty Mutual Insurance Company, and through partnerships with other companies, they started to sell full cover car policies.

Source: Wikipedia

 # 2 The First Branch

Liberty Mutual opened its first branch office in Springfield, Massachusetts in 1914, and issued its first auto policy the same year.

Source: Encyclopedia

# 3 Worker’s Compensation Insurance

In 1936, Liberty Mutual became the Number 1 writer of workers’ compensation insurance, and in 1937, the company expanded to all 48 states.

Source: Reference for Business

# 4 Prototype Cars

Liberty Mutual started the Research Center for Safety and Health in Hopkinton, Mass., in 1954. Two prototype “survival cars” introduced new safety features in 1957, including headrests to prevent whiplash and safety belts.

Source: Bad Faith Insurance Claims

# 5 Recognition from J.D. Power & Associates

Customer Service Excellence Awardee from J.D. Power and Associates, a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.

Source: J.D. Power

# 6 The Types of Insurance They Offer

The company offers a wide range of insurance products and services, including personal automobile, homeowners, workers’ compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, fire and surety.

Source: Wikipedia

# 7 Fortune 500

Liberty Mutual Insurance Group appears in the 2008 Fortune 500 company listing. Every year Fortune the American business magazine compiles, ranks and publishes a list of the top 500 U.S. public corporations based on their gross revenue. The Top Fortune 500 Company list provides Fortune magazine readers with facts and information about the top companies and their contributions to the American economy. Companies eligible for inclusion in the Top Fortune 500 Company list are  those incorporated in the United States and whose revenues are publicly available.

Source: makingafortune

Liberty Mutual employs over 50,000 people in 30 countries

# 8 Number of Employees

The company employs over 50,000 people in more than 900 locations throughout the world.

Source: Wikipedia

# 9 The Company Headquarters

The company’s home office is in Boston, Massachusetts.

Source: Wikipedia

# 10 Olympic Sponsorship

Liberty Mutual and the United States Olympic Committee (USOC) signed a sponsorship agreement in early 2013. The Fortune 100 Corporation became a domestic sponsor of the Team USA until 2016.

Source: Tanner Simkins

 # 11 Giving Back

Liberty Mutual established Liberty Mutual Foundation in 2003.

Source: Philanthropy Massachusetts

# 12 They Only Offer Insurance

They are one of the top ten insurance companies in the entire world. This is because they have a vast array of policy types available and good customer service. Their insurance plans include both commercial and personal options. Commercial options include small business owner policies, general liability, commercial auto, and equipment coverage. Personal options include home, auto, boat, life, identity theft, and even pet insurance.

Source: Wiki.ezvid.com

Liberty Mutual auto insurance includes accident forgiveness.

# 13 Accident Forgiveness

They will not raise your rates for your first accident, even if it is your fault. You can also choose to include new car replacement. If your car is less than a year old, they will replace it with a brand new car if yours is totaled in an accident. Other optional add-ons include medical costs for passengers, better car replacement, and rental car reimbursement.

Source: Wiki.ezvid.com

# 14 Specialty Insurance Plans

Identity theft protection can be included in a home insurance policy. It will protect you if you are the victim of fraud. Benefits include reimbursement for incurred expenses. This covers things like legal fees, lost wages, loan application fees, and other costs one may experience. They also offer identity restoration assistance.

Source: Wiki.ezvid.com

# 15 Business Policies

Agriculture, construction, healthcare, financial, food service, and sports and fitness are just a few examples. They offer policies for everything from small startups to family owned businesses to fortune 500 companies. Most business owners can request assistance from one of their risk control specialists. They can make practical suggestions to help businesses mitigate the risk of potential future problems.

Source: Wiki.ezvid.com

# 16 The Company’s Blog

The company has a really cool blog consumers can check out.

It also includes coverage calculators to help you get a quote on a personal insurance policy that fits your needs. They have a coverage calculator for auto, home, and renter’s insurance. The website makes it easy to find an insurance agent in your vicinity. However, consumers should be aware that there’s been some complaints of unsatisfactory settlements and claim payouts.

Source: Wiki.ezvid.com

# 17 They Own Some Local Insurance Companies

Liberty Mutual Group owns, wholly or in part, local insurance companies in Argentina, Brazil, Chile, China (including Hong Kong), Colombia, Ecuador, India, Ireland, Malaysia, Poland, Portugal, Russia, Singapore, Spain, Thailand, Turkey, the United Kingdom, Venezuela and Vietnam.

Source: Wikipedia

# 18 The Company’s Slogan

“Responsibility. What’s your policy?”

Source: makingafortune

# 19 Mission & Vision Statement

“Helping people live safer, more secure lives.”

Source: makingafortune

In 2018 Liberty Mutual earned premiums worth approximately 37.91

# 20 They hold an “A”(Excellent) rating from A.M. Best

A rank of “A”(Excellent) from A.M. Best, the world’s oldest and most authoritative insurance rating and information source.

Source: AM Best

# 21 Top Ten Largest Auto Insurance Companies of 2019

Liberty Mutual’s auto insurance customers can add coverage for antique or classic cars, all-terrain and off-road vehicles, recreational vehicles and trailers. Liberty Mutual also sells a wide range of other coverage, including policies for homeowners and renters.

Source: nerdwallet

# 22 Funny Mascots

Humor and fictional personalities are both firsts for the insurance company.

Source: campaign

# 23 Liberty Mutual’s Global Presence

Liberty Mutual operates in 30 countries and economies around the globe

Source: AP News

# 24 Total Investments in 2019

Total invested assets as of March 31, 2019 are $78.2 Billion

Source: libertymutualgroup

# 25 Best Employers for Women

Liberty Mutual Insurance Named one of the Best Employers for Women in 2018 by Forbes Magazine.

Source: MarketWatch

# 26 Liberty Mutual Benefits

There are many benefits with Liberty Mutual Insurance most of them revolve around the accident and what benefits you would reap. This is so during the claims process you incurred the least amount of expenses on your end.

Source: The Insurance Hackers

 # 27 Discounts

Liberty Mutual gives newly retired drivers a discount, and Farmers offers policyholders in Arizona a break on their auto premiums if they’re 55 or older and live in a retirement community.

Source: MoneyWise

# 28 Insurance Bundles

Liberty Mutual really does put all their information upfront, to help you do everything you need with as much ease as possible.

Source: money under 30

# 29 MasterThis Platform

Liberty Mutual Insurance teamed up with HowStuffWorks®, an award-winning source of unbiased, reliable, easy-to-understand answers and explanations, to develop a new go-to online platform, MasterThisTM. The site features exclusive content by HowStuffWorks and helps home and auto owners address immediate needs by providing the tools and know-how to fully master a topic so they can tackle those challenges with greater confidence.

Source: PR Newswire

# 30 A Great Employer for Millennials

LMI is the fourth largest employer in the financial and insurance sector, regularly hiring close to 500 interns each semester — 100 percent of which are paid internships — and offering full-time job offers to 60 percent of those interns

Source: Bentley University

Final Thoughts

There you have it folks. These are 30 cool facts about Liberty Mutual Insurance Company. Which one of these facts is your favorite and why? Leave a comment below to let me know what you think. I look forward to hearing from you.

Mutual of Omaha Insurance Company: Cool Facts & History

In today’s post, I am going to share some really cool facts about Mutual of Omaha Insurance Company. These are things I found online about the company (sources are cited). Enjoy the post and be sure to leave a comment below to share your thoughts.

Top 21 Cool Facts About Mutual of Omaha Insurance Company

Mutual of Omaha Insurance Company: Top 21 Cool Facts

# 1 It was formerly known as Mutual Benefit Health & Accident Association.

Mutual of Omaha was first known as Mutual Benefit Health & Accident Association and in 1950 it changed its name to Mutual of Omaha Insurance Company.

Source: Wikipedia

Mutual of Omaha has stood the test of time.

# 2 It has been in business more than 100-years!

Mutual of Omaha has been in the business of offering insurance and financial products for over 100 years. Mutual of Omaha was founded in 1909 by a medical student at Omaha’s Creighton University and his wife, Dr. C.C. and Mabel Criss.

Source: Good Financial Cents

# 3 The company is headquartered in Nebraska and operates in 44 states.

Mutual of Omaha’s home office remains in Omaha, Nebraska with satellite offices in most states.

Source: nerdwallet

# 4 Mutual of Omaha’s Wild Kingdom premiered on network television. 

In 1963, the company became famous for its wildlife and reality programming – the “Mutual of Omaha’s Wild Kingdom” show that featured Marlin Perkins. The program ran until 1988. The program won Emmy Awards from 1966 to 1969 for “outstanding program achievement.”

Source: Omaha World Herald

# 5 The company provides some of the simplest and easiest term-life insurance coverage you can find.

They sell Priority Income Protection plan. This policy is their simplified version of disability insurance coverage. This policy will still give you disability coverage, but it’s much easier to apply for and be accepted for protection. You can get monthly benefits up to $4,000 (or up to 70% of your income) and you can receive benefits anywhere from 12 months to 36 months.

What makes this policy so special is the ability to skip the medical exam and get protection in a matter of days. Just like with their other policy, you can still purchase additional riders to increase your coverage.

Source: Good Financial Cents

# 6 One of the first companies to provide disability insurance to non-professional workers.

I find this fact very interesting myself. They definitely paved the way for blue collar and non-professional employees (and entrepreneurs) looking for disability insurance.

# 7 Mutual of Omaha offers Medicare supplement plans nationwide except in Massachusetts.

Supplemental insurance is extra or additional insurance that you can purchase to help you pay for services and out-of-pocket expenses that your regular insurance does not cover. Some supplemental insurance plans will pay for out-of-pocket medical expenses, such as deductibles, copayments, and coinsurance.

Source: VeryWellHealth.com

# 8 Mutual’s Residential Damage Rider waives your monthly premiums for six months if your residence suffers $25,000 or more worth in damages.

A rider on a homeowner’s insurance policy can provide additional coverage for valuable things you own that are worth more than the per-item limit of your homeowner’s or renter’s insurance policy.

First accident and health company to use a computer system.

# 9 First accident and health company to use a computer system.

While some insurance companies were slow to use computers, Mutual of Omaha embraced technology and was the first accident and health company to do so.

# 10 Mutual of Omaha is one of the very few insurance companies that offers an online application for Medicare Supplement insurance policies.

The company’s website allows its visitors to easily obtain quotes for both whole life and term insurance coverage. And, the prices for all lines of the company’s life insurance are quite competitive.

Source: Omaha World Herald

# 11 By obtaining quotes from only one insurer, you can essentially lock yourself into just one premium price.

Mutual of Omaha offers a wide variety of insurance and financial products for both consumers and business customers. These include Medicare Supplement, life insurance, long-term care, disability insurance, critical illness coverage, annuities, structured settlements, cancer, heart attack and stroke insurance, small business solutions, and investments.

Source: Omaha World Herald

The company believes in giving back to the community.

# 12 The company believes in giving back to the community.

In 2005, Mutual of Omaha established the Mutual of Omaha Foundation. In the same year, the company also sponsored Indy Car racing.

Source: HeartLifeInsurance.com

# 13 Mutual of Omaha opened its doors to banking.

In 2007, Omaha Financial Holdings, Inc. was created as the parent company of Mutual of Omaha’s banking initiatives.

Source: Wikipedia

# 14 The company employs over 5,000 people.

The company and its affiliates have more than 5,000 employees plus a network of sales advisors.

Source: Wikipedia

# 15 In 2014, they had a $17.6 billion policy reserve which is set aside to pay future claims.

This puts me at ease knowing the company has a large reserve for when things go wrong.

Mutual Of Omaha has one of the best online portals.

# 16 Mutual Of Omaha has one of the best online portals. 

Once policy is issued you can register for an account online. Clients find this extremely easy to use. Among other things, you will have the ability to view explanation of benefits (EOB) online was your claims are processed. This can save you a lot of time, you won’t have to wait on hold with customer service just to order a new ID card or to pay a bill.

Source: blue wave insurance services

# 17 It is a Fortune 500 company for 23-years and counting.

Mutual of Omaha made its debut in 1995, dropped off in 2006 and 2007, but is solidly on the list since.

Source: Omaha World Herald

# 18 They hold an A+ rating from A.M. Best

A rank of A+ from A.M. Best, a well-known credit rating agency, is one of the highest positions for an insurance company to hold in terms of financial strength.

Source: True Blue Life Insurance

# 19 In 2018, the company ranked # 5 overall out of 23 insurers for overall customer satisfaction.

In a life insurance study by J.D. Power published in 2018, Mutual of Omaha scored “better than most” companies for overall customer satisfaction. The company ranked No. 5 overall out of 23 insurers included in the survey.

Source: nerdwallet

# 20 Mutual of Omaha has a customer base of 3.8 million individual policyholders and 9 million members that are part of employer groups. 

Considering there are only about 350 million Americans, this means that nearly 1 in 30 Americans has an insurance policy of some type with Mutual of Omaha.

# 21 Mutual holds over 40 Billion in assets with a reported net income of almost 300 million in 2018. 

From a financial standpoint, Mutual of Omaha is considered to be extremely strong. This means that policy holders can know that the company will be there when they need them to pay on when they have a claim.

Source: Wikipedia

Final Thoughts

There you have it folks. These are 21 interesting facts about Mutual of Omaha Insurance Company. Which fact did you find the most interesting? Leave a comment below to let us know what you think.

If you’d like to visit the company’s website, you can do so here.

Suggested Reading

  1. List of Bankrupt Insurance Companies
  2. The Future of SIU
  3. Weird Things You Can Insure

 

 

List of Out of Business, Defunct & Bankrupt Insurance Companies

In today’s post, I am going to share a list of out of business, defunct and bankrupt insurance companies. This list comes from independent research online. All sources are cited.

Like any other industry, not all insurance companies stay in business. There is a fairly small failure rate in the insurance industry compared to other industries, mostly because these companies are HUGE. Let’s face it, you don’t see many small “mom and pop” insurance companies.

Although the insurance industry is highly regulated, and well funded, some insurance companies do fail. Some of the companies on this list were BILLION DOLLAR companies at one point in time.

In the list below, we will cover the following things about these bankrupt insurance companies:

  • When the company was founded
  • When it went out of business
  • A brief history
  • And if available, what caused it to fail

bankrupt insurance companies

List of Out of Business, Defunct & Bankrupt Insurance Companies

# 1 Penn Treaty Network America Insurance Company 

(Created: 1975; Liquidation Date: March 1, 2017)

Penn Treaty and American Network have about 76,000 policyholders nationwide, with 9,000 in Pennsylvania. The Wall Street Journal recently described Penn Treaty’s expected demise as “one of the nation’s costliest insurance failures ever” in the life-health category. The company has $500 million in assets to cover long-term care claims projected to be $4.6 billion, according to Insurance Commission spokesman Ron Ruman.

Source: The Morning Call

# 2 American Medical and Life Insurance Company

(Created: 1964; Liquidation Date: December 28, 2016)

American Medical and Life Insurance Company (AMLICO) was a New York domiciled company licensed in 41 states. AMLICO wrote both individual (limited benefit medical, ordinary life and short term disability) and group business (dental, life, accident and sickness and vision).

The company experienced losses in 2013 and soon after began winding down business. A liquidation petition was filed on November 16, 2016 and was approved on December 28, 2016.

Source: National Organization of Life & Health Insurance Guaranty Associations

# 3 CoOportunity Health

(Created: 2012; Liquidation Date: February 28, 2015)

West Des Moines-based CoOpportunity was created in 2012 with $145 million in federal loans and garnered 120,000 individual and group members in 2014’s open enrollment. The dynamics of loans, premium revenue, membership health and changing regulations, though, put the insurer on a path towards insolvency.

Source: HealthCareFinance

# 4 Executive Life Insurance Company of New York

(Created: 1964 ; Liquidation Date: August 08, 2013)

On April 19, 2012, the Supreme Court of the State of New York, Nassau County Receivership Court entered an Order finding Executive Life Insurance Company of New York (ELNY) to be insolvent and approved a Restructuring Agreement in connection with the liquidation and restructuring of ELNY.  By Order of the Receivership Court, the Superintendent of Financial Services of the State of New York, as Receiver, was directed to liquidate ELNY’s business and affairs in accordance with New York Insurance Law and in substantially the manner provided in the Restructuring Agreement.  The Liquidation Date of ELNY was the closing date of the Restructuring Agreement, which occurred on August 8, 2013.

Source: New York Liquidation Bureau

# 5 Lumbermens Mutual Casualty Company

(Created: 1912 ; Liquidation Date: May 10, 2013)

Lumbermens Mutual Casualty Company engages in property and casualty insurance business. The company was founded in 1912 and is based in Lake Zurich, Illinois. Lumbermens Mutual Casualty Company operates as a subsidiary of Lumbermens Mutual Group. As of May 10, 2013, Lumbermens Mutual Casualty Company is in liquidation.

Source: Bloomberg

Medical debts are the number-one cause of bankruptcy in America

# 6 Universal Health Care Insurance Company, Inc.

(Created: 2006 ; Liquidation Date: April 01, 2013)

Universal Health Care Insurance Company, Inc. went out of business. Universal Health Care Insurance Company, Inc. offers insurance services. Its products include Medicare plans. The company was incorporated in 2006 and is based in St. Petersburg, Florida. Universal Health Care Insurance Company, Inc. is a former subsidiary of Universal Health Care Group, Inc.

Source: Bloomberg

# 7 Standard Life Insurance Company of Indiana

(Created: 1934; Liquidation Date: July 26, 2012)

Standard Life Insurance Company of Indiana was incorporated in Indiana on July 3, 1934, and was acquired by Capital Assurance Company (CAC) on June 8, 2005. Under CAC ownership, Standard Life’s product offerings shifted from annuities with life contingencies to annuities without life contingencies, also known as deposit-type contracts. When the company was placed into rehabilitation on December 18, 2008, Standard Life was licensed in all states (except New Jersey and New York) and in the District of Columbia. Standard Life wrote business primarily in California, Florida, Michigan, Indiana, and Ohio.

Source: National Organization of Life & Health Insurance Guaranty Associations

# 8 Golden State Mutual Life Insurance Company

(Created: 1925; Liquidation Date: January 28, 2011)

The Golden State Mutual Life Insurance Company was founded in 1925 by three African-American businessmen. Serving African-Americans who had been denied coverage by insurance companies because of racial discrimination, the company opened in a storefront in South Los Angeles and later built its own headquarters on Central Avenue (Historic-Cultural Monument #580; 1929). The company quickly grew to become the largest black-owned business west of the Mississippi River and in 1948 commissioned the construction of a new home office on Adams Boulevard. The building served as the headquarters for the company for over 60 years.

In 2009, state insurance regulators seized control of Golden State Mutual Life Insurance Company after convincing a Los Angeles County Superior Court judge that the insurer’s reserves had run dangerously low. By law, the state insurance commissioner has the power to reorganize and revitalize the company –much as with a bankruptcy for corporations – or he or she can liquidate it.

Source: BernardParks.com

# 9 National States Insurance Company

(Created: 1964; Liquidation Date: November 15, 2010)

National States Insurance Company was licensed in 37 states as a life, accident, and health insurer. The company was domiciled in Missouri and was incorporated in 1964 as American Independence Life Insurance Company. It was renamed and reorganized in 1967 as National States Insurance Company.

National States’ total capital and surplus slowly declined after year-end 1996. By year-end 2008, the decline became more significant. The company was put in Rehabilitation on April 1, 2010.

Source: Society of Actuaries

# 10 American International Group, Inc. (AIG)

(Created: 1919; Liquidation Date: late 2008)

AIG was a central player in the financial crisis of 2008. It was bailed out by the federal government for $180 billion, and the government took control. The Financial Crisis Inquiry Commission (FCIC) of the US government concluded AIG failed primarily because it sold massive amounts of insurance without hedging its investment. Its enormous sales of credit default swaps were “made without putting up initial collateral, setting aside capital reserves, or hedging its exposure—a profound failure in corporate governance, particularly its risk-management practices”. The US government sold off its shares after the crisis and completed the process in 2012.

Source: Wikipedia

# 11 Legion Insurance Company

(Created: 1964; Liquidation Date: July 28, 2003)

Legion Insurance Company primarily engaged in property and casualty insurance, with health insurance representing a small proportion of their total business. Legion belonged to a family of companies under Mutual Risk Management (MRM), a Bermuda-based holding company. In April 2002, the Pennsylvania Department of Insurance placed Legion into rehabilitation. The company was placed into liquidation in July 2003. All health policies were cancelled where applicable and guaranty associations paid off all outstanding covered obligations.

 Source: National Organization of Life & Health Insurance Guaranty Associations

bankrupt insurance companies

# 12 Conseco

(Created: 1979; Liquidation Date: December 2002)

Conseco, which grew from a small company set up in 1979 to become one of the largest U.S. home lenders and personal insurers by the late 1990s, collapsed under the weight of debts caused by ambitious expansion and mounting bad loans. Conseco’s filing, made in bankruptcy court in Chicago, is the third largest in the U.S. ever, after WorldCom Inc. and Enron Corp. Conseco listed $52.3 billion of assets and $51.2 billion of debts in its latest financial report.

 Source: Fox News

# 13 PHICO Insurance Company

(Created: 1978; Liquidation Date: February 1, 2002)

PHICO’s primary business was writing medical malpractice insurance for health systems, hospitals and physicians. In addition, PHICO wrote workers’ compensation. The last financial report indicated the company’s capital and surplus was approximately $250 million in the negative.

Source: Insurance Journal

# 14 Reliance Insurance Company

(Created: 1817; Liquidation Date: October 3, 2001)

Reliance Group Holdings (RGH), the parent company of Reliance Insurance Company (RIC), one of America’s oldest insurers which traces its roots back to 1817, filed for bankruptcy protection in the Southern District of New York on June 12, 2001. The petition listed total assets of $12.598 billion and total liabilities of $12.877 billion.

As of 1998 the company was still profitable, earning $326 million on gross revenues of $3.4 billion. Aggressive acquisition strategy and quest for ever higher dividend payments, however, left RIC vulnerable in the cutthroat competition for market share, which led to a deterioration in underwriting standards that eventually resulted in the unsustainable losses.

Source: Insurance Journal

Lehman Brothers Holdings, Inc. was the largest bankruptcy in America

# 15 Mission Insurance Company

(Created: Unknown; Liquidation Date: February 24, 1987)

Mission Insurance Group, the holding company for the Mission Insurance Company, the Mission American Insurance Company and other units, agreed to an involuntary petition that places it in bankruptcy proceedings and protects it from creditors as it attempts to restructure its debt.

Mission Insurance Group is controlled by the Cincinnati-based financier Carl H. Lindner through the American Financial Corporation, which holds 49.9 percent of Mission’s stock. In the petition, regulators said the company had assets of $164.7 million and liabilities of $612.8 million, or a negative net worth of $448.1 million.

Source: The New York Times

Final Thoughts

There you have it folks. This is our list of the out of business, defunct and bankrupt insurance companies. What are your thoughts? Can you think of any other bankrupt insurance companies we might have missed? Leave a comment below to share your thoughts. I look forward to hearing from you.

Suggested Reading

20 Popular Long-Term Disability Insurance Companies

Today, we are going to share 20 popular long-term disability insurance companies. We are not affiliated with any of these companies, nor are we endorsing them. To stay neutral, we are listing them in alphabetical order. This article is for educational purposes only.

What is Long-Term Disability Insurance?

I figured the best way to start this post is to explain what long-term disability insurance is. Here’s a great definition I found online.

Longterm disability insurance (LTD) is an insurance policy that protects an employee from loss of income in the event that he or she is unable to work due to illness, injury, or accident for a long period of time.

Source: The Balance Careers

Why should you buy it? Because you need an income to live! There are so many things in life that our out of control. If you get sick or disabled and lose your income, it could force you into bankruptcy or homelessness. You don’t want that to happen.

20 Popular Long-term Disability Insurance Companies

Top 20 Long-Term Disability Insurance Companies

With that being said, here is our list of 20 popular long-term disability insurance companies. They are in alphabetical order.

# 1 AllState

The Allstate Corporation is one of the largest insurance providers in the United States and one of the largest that is publicly held. The company also has personal lines insurance operations in Canada. Allstate was founded in 1931 as part of Sears, Roebuck and Co., and was spun off in 1993. The company has had its headquarters in Northfield Township, Illinois, near Northbrook since 1967. Allstate ranked No. 79 in the 2018 Fortune 500 list of the largest United States corporations by total revenue. Its current advertising campaign, in use since 2004, asks, “Are you in good hands?”

Source: Wikipedia

# 2 American Fidelity

American Fidelity Assurance Company is an Oklahoma-based supplemental health insurance and financial services company, specializing in multiple industries, including education and healthcare. It offers group short and long-term disability plans, as well as a $50,000 Accidental Death and Dismemberment benefit. Founded in 1960, the company has 1,600 employees.

Source: consumersadvocate

# 3 Ameritas

Ameritas was originally established in 1887 under a different name, the Old Line Bankers Life Company of Nebraska. They merged with Acacia Life and Union Central Mutual Holding Company of Cincinnati, Ohio. After the two mergers, the company became known as Ameritas.

Source: Good Financial Cents

# 4 Assurity

Assurity follows their motto of helping people through difficult times every day. Founded in 1890, they are a mutual company offering a wide variety of insurance products. Being a mutual Assurity company (like Guardian or MassMutual) means Assurity is owned by their policyholders, so corporate goals and strategies should benefit those policy owners.

Source: High Income Protection

# 5 Guardian Life

Guardian Life Insurance has been around for a long time—150 years! For a life insurance company—or any company—to be in business for that long says a lot. Guardian has made a name for themselves as a trustworthy mutual life insurance company with solid financial strength.

Source: TermLife2Go

# 6 Illinois Mutual

Over the past 100 years, they’ve experienced a lot of growth. They’ve grown from the small Illinois insurance company they started as, into a company with over 1,000 independent agents.

They had over $1,000,000,000 in total assets in 2016. One thing to be aware of is the states Illinois Mutual can service.

Source: Good Financial Cents

# 7 MassMutual

Massachusetts Mutual Life Insurance Company, better known as MassMutual, is one of the oldest insurance companies in the United States. George W. Rice founded the company in 1851 as a mutual company, or one that is owned by its policyholders. From its early beginnings, Massachusetts Mutual Life Insurance Company has grown to become a financial giant serving over 13 million clients worldwide.

Source: the balance

# 8 MetLife

MetLife, Inc. (MetLife), incorporated on August 10, 1999, is a provider of life insurance, annuities, employee benefits and asset management. The Company’s segments include U.S.; Asia; Latin America; Europe, the Middle East and Africa (EMEA); MetLife Holdings, and Corporate & Other.

Source: Reuters

# 9 Mutual of Omaha

Mutual of Omaha is considered to be one of the most financially sound insurance companies in the United States. As of year-end 2016, the company reported a pre-tax operating income of more than $526 million, on revenues of nearly $8 billion. Both of these figures represent an increase over its 2015 results. The company also reported an after-tax consolidated net income of more than $356.5 million, as compared with $333 million in 2015.

Source: InsuranceScored.com

Only 33% of private sector workers have access to long-term disability benefits through their employer, and 40% have access to short-term disability benefits.

# 10 Northwestern Mutual

Northwestern Mutual offers life insurance, long-term care insurance, disability insurance, annuities, mutual funds, and employee benefit services.

Northwestern Mutual’s headquarters is in Milwaukee, Wisconsin. Northwestern Mutual has a revenue of $28.1B, and 5,800 employees. Northwestern Mutual’s latest funding round was a Investment Fund for $150M on May 2019.

Source: Owler

# 11 Ohio National

Founded in 1909, Ohio National Life Insurance Company is a mutual insurance holding company headquartered in Cincinnati, Ohio. The company has nearly $42 billion in assets under management, and employs more than 1,300 associates at its headquarters.

Source: Simple Life Insure

# 12 Petersen International Underwriters (PIU)

Petersen International Underwriting will cover risks that traditional life insurance companies either will not or cannot insure. That being said, you will receive a more favorable rate if you can ultimately place a policy with a traditional life insurance company.

Source: Good Life Protection

# 13 Principal Financial Group

Principal Financial Group, Inc (Principal) is an financial institution incorporated in 1879, whose controlling shareholder is the American investment fund The Vanguard Group Inc (10.73%). The company offers pension instruments, insurance and asset management throughout 18 countries. It has its headquarters in Des Moines (Iowa, USA) and regional offices in Mexico, Chile and Sao Paulo.

Source: bnamericas

# 14 Prudential

Prudential Financial, Inc. is an American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, investment management, and other financial products and services to both retail and institutional customers throughout the United States and in over 40 other countries.

Prudential Financial is the largest insurance company in the United States, with total assets amounting to approximately 1.456 trillion U.S. dollars.

Source: Wikipedia

# 15 RiverSource

Riversource has been in business since 1894 and has an “A+” financial stability rating from A.M. Best. Two income protection plans are available through RiverSource, Income Protection and Income Protection Plus. Both plans offer an income tax-free monthly benefit. Coverage is guaranteed up to age 65. A cost of living rider adds coverage to help protect you against cost-of-living increases.

Source: the balance

# 16 Sunlife Financial

Sun Life Financial, Inc. is a diversified financial services company. It provides life and health insurance, savings, investment management, retirement and pension products and services to both individual and corporate customers. The company was founded by Mathew Hamilton Gault on March 18, 1865 and is headquartered in Toronto, Canada.

Source: CompaniesHistory.com

# 17 The Hartford

Founded in 1810, The Hartford Financial Services Group, Inc. (NYSE: HIG) is one of the largest investment and insurance companies based in the United States, with offices in Japan, Brazil, Ireland, England, and the United States. With nearly 30,000 employees and $2.1 billion in income in 2004, The Hartford was ranked 88th on the 2005 Fortune 100 list.

Source: Advantage Group LLC

# 18 The Standard

The Standard is in fact a group of companies based in the United States. It carries under its name the Standard Insurance Company of Portland, Oregon, as well as Standard Life Insurance Company of New York, based in White Plains, New York. The former is active and has license to operate in all the states of America except New York, which is covered by the latter.

Source: Great Life Insurance Group

# 19 Thrivent

Back in 1902, a company named Aid Association for Lutherans (AAL), a fraternal benefit society, launched in Wisconsin. Around fifteen years later, Lutheran Brotherhood (LB) formed in Minnesota. For a long time, the two operated separately but with very similar goals. In 2001, after years of conversation and praising the services of one another, the two insurers combined and became Thrivent Financial for Lutherans. Currently ranked #316 on the 2017 Fortune 500, this non-profit company helps to support families in numerous ways (including their many life insurance products).

Source: TermLife2Go

# 20 Unum

The company claims to provide insurance protection plans to more than 80,000 employers worldwide, including 32% of Fortune 500 companies. It’s been in business for decades, has high financial ratings across the board, and has made Fortune’s most trustworthy and reputable companies’ lists. It offers some riders with its group LTD policy, giving some flexibility and choice to employees. Unlike some of its competitors, it doesn’t offer individual plans, which limit its services to consumers.

Source: consumersadvocate.org

90% of long-term disability claims are not caused by accidents, but rather illnesses

Suggestions & Tips

When you are shopping for long-term disability insurance, here are a few suggestions and considerations.

  1. Ask your HR Department if this is provided by your employer and if not, what do they suggest.
  2. Talk with your current insurance company or insurance agent and see if they provide it. It would also be wise to talk with your CPA and/or attorney.
  3. Educate yourself and determine what you need and how much you need.
  4. Get quotes from at least three different insurance companies. Make sure the quotes are for comparable benefits, so you are comparing apples to apples.

Final Thoughts

There you have it folks. These are 20 popular long-term disability insurance companies. What are your thoughts? Do you agree or disagree with our list? Leave a comment below to share your thoughts.

Once again, we are not endorsing any of these companies, nor are we affiliated with them.

Suggested Reading

  1. Bankrupt Insurance Companies
  2. The Future of SIU
  3. Insurance Adjuster Careers

Top 20 Weird Things You Can Insure

Today, I’m going to share the top 20 weird things you can insure. This is a collection of neat things we found online that people have insured.

Some of these examples are really hard to believe. Each story is cited with where we found it online. Enjoy the read.

Weird Things You Can Insure

Top 20 Weird Things You Can Insure

# 20 Wars and Terrorism (including riots)

I never knew you could insure war or terrorism, but it is an option.

In 2010, the country of Thailand was afraid of losing tourism dollars due to political upheaval and protests. So it offered up to $10,000 to anyone experiencing loss or damage due to the turmoil. It also offered tourists up to $100 per day for travel delays caused by demonstrations.

Source: Wisebread

# 19 Teeth

I don’t have the nicest teeth myself, but if I did, I would insure them!

America Ferrerra was representing Aquafresh White Trays when they decided to take out a $10 million policy on her gorgeous pearly whites – and put out a press release about it. It wasn’t all for publicity, though, sales of the product helped raise money for a charity called “Smiles for Success” that gives dental care to women leaving welfare to return to work.

Source: celebitchy

# 18 Spoiled Food

Got food in the fridge? Expecting to lose power for a few days and worried about the food going bad? Yes, you can insure that food!

While homeowners’ insurance policies vary by company, Marc McLaughlin with the Property and Casualty Division of the Bureau of Insurance with the State Corporation Commission said there are specific policy’s that homeowners can purchase to protect food loss. Those policies typically cost anywhere from $15 to $50 a year.

 Source: WSLS

Engagement rings evolved as a form of virginity insurance

# 17 Special Events (Wedding, Birthday, Halloween, Bar Mitzvahs)

Got a big birthday party planned, but worried that things might not go as expected? You should consider special event insurance.

Special event insurance is a type of insurance that individuals or organizations purchase to cover their liabilities when hosting events, such as weddings or fundraisers. Basic one-day event insurance averages about $125. That cost can go up based on the number of attendees, the location, and any planned activities.

Source: FitSmallBusiness.com

# 16 Satellites

If I owned a satellite, I would insure it!

You’d think it would be hard to get a policy on something literally shot into orbit and left unprotected in space for a prolonged period of time. And yet Lloyd’s was the first to insure satellites, starting with Intelstat 1 in the 1970s. Lloyd’s value the policies at $100 million each, and they mean business. In 1984, the company put up financing for a space shuttle and a crew of five astronauts to reclaim two rogue satellites.

Source: Haven Life

# 15 Plants

Is your landscaping the eye of your community? Does your business or home have extravagant landscaping? If so, check this out.

Landscaping insurance provides protection against financial losses arising from third-party claims from bodily injury and property damage. Business property insurance and workers’ compensation are additional policies that cover equipment and other assets of landscaping businesses and their employees. The annual cost of landscaping general liability insurance starts around $400 for most small business owners.

Source: FitSmallBusiness.com

# 14 Photography Gear

Did you know there is special insurance for photographers? Yep. Check this out.

Like any insurance, photography insurance is when you pay a fee, usually on a monthly or yearly basis, that protects you from having to pay a lot of money if something goes wrong related to your business. Photographer insurance can cover anything from damage to your photography equipment to injury and lawsuits. There are a lot of upfront expenses when it comes to starting your own photography business, like investing in a camera and accessories, business cards, website hosting and more.

Source: Format

# 13 Patio & Patio Furniture

If you have a detached patio and/or patio furniture, this is worth checking out.

In most cases, the dwelling insurance part of your homeowner’s policy covers the repair and rebuilding of the structure of your home. If your patio is not attached to the property, however, it doesn’t qualify as part of the dwelling — so you might need to purchase what is known as “other structures protection.”

Source: GOBankingRates

# 12 Professional Liability (Yoga/Personal Trainer)

This is another one of the weird things you can insure: professional liability.

Professional Liability Insurance, also referred as Malpractice Insurance, can cover the cost of legal fees. Your insurance policy will also cover any settlements or judgments that come as a result of lawsuits and claims against you. Your policy can open in a new window even cover any lost wages due to the time and process of a claim.

Source: Marine Agency

# 11 Multiple Births

This might just be the weirdest thing on this list. Do “twins” run in your family? Pregnant, but don’t know what you will have?

Multiple Birth Insurance, this type of coverage helps families “protect” against having more than one child per pregnancy.

We all know that babies cost money, placing great strain on the bottom line of every family they enter. And one of the few things more disruptive than a baby on a family’s budget — is another baby, or two, or three.

Source: Coverhound

# 10 Lottery Insurance – For Companies

This one makes me laugh. Companies can purchase lottery insurance in case their employees win the lottery.

Imagine that you own a company and a large group of your employees entered a lottery pool, and won. You’d be excited for them, right? Well, that excitement might not last if half of your staff decides to retire on the spot. Lloyd’s of London is among the companies that offers insurance for such a scenario, to cover loss of productivity and the hiring of temps and new staff.

Source: Wisebread

# 9 Loch Ness Monster

Ha, ha, ha! This is something I would love to see.

In the early 1970’s, Cutty Sark Whisky ran a promotional contest stating if someone were to capture Nessie, The Loch Ness Monster, during a specified time, they’d pay out a million pounds. Cutty Sark purchased a policy from Lloyd’s that would pay the reward in the event someone actually did catch the beast. Written into the policy were conditions, including a measurement of 20 feet in length or more and verification as the Loch Ness monster by the curators of the Natural History Museum.

Source: PSA

# 8 Legs

Got nice legs? Make your living with them? If so, check this out!

Insured by razor maker Gillette, Mariah Carey’s legs were protected after she became the spokeswoman for their “Legs of a Goddess” campaign. Out of all the strange body parts insured by celebrities, Mariah has the most expensive in the world – her legs are insured for a ground-shattering one billion dollars.

Source: List25

# 7 Kidnapping

People do get kidnapped. It’s sad, but true. Human trafficking is a HUGE problem. Plus, some countries are known for people getting kidnapped. If you’re traveling somewhere high risk, or are a high risk person, you should check out kidnapping insurance.

An insurance policy purchased to protect individuals when working or travelling in high-risk areas such as Latin America, the Middle East, and Eastern Europe. Kidnap and ransom insurance, also known as K&R insurance, will reimburse the insured for ransom payments (both those paid, and those lost in transit) and cover perils such as kidnapping, extortion, wrongful detention, and hijacking in addition to providing coverage for death and dismemberment, disablement, and medical care for the kidnap victim. A K&R insurance policy may also reimburse the insured for crisis management consultants who provide advice on how best to respond to an incident.

Source: Super Brokers

# 6 Key Business Person’s Death

This one isn’t all that weird to be, but it would be for some people. If you own a business and have good people running it, you might want to consider this.

Key person insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business–the ones whose absence would sink the company. You definitely need to consider key person insurance on those people.

Source: Entrepreneur

# 5 Insurance for a “Change of Heart”

Runaway brides, this one is for you!

A partner changing their mind last minute on their wedding day. Wedding insurance provides coverage for things that could go wrong leading up to or on the Big Day, including a runaway bride.

Source: Global Financial

# 4 Insurance Against Death by Laughter

Is your spouse or good friend really, really funny? Can they make you laugh until your stomach hurts? If so, check this out.

Back in the 1900s Lloyd’s of London issued a $1m policy that would pay out if any film-goers died from excessive laughter. And while we’re on the subject, American comedian Rich Hall, probably wins the prize for hardest claim to prove, having insured himself for $1 million just in case he loses his sense of humour.

Source: Sunlife UK

Pepsi ran a sweepstakes to win $1 billion in 2003, and paid $10 million for insurance

# 3 Hole-in-One Prize

Getting a hole in one is like a dream come true, unless you are the golf course offering a prize for anyone who gets one.

Hole-in-one insurance is a type of price-indemnification coverage. It’s named for insurance taken out by golf-tournament sponsors that run contests offering big-ticket prizes to one or more contestants who make a hole in one on a single try.

Source: Investopedia

# 2 Fantasy Football

Fantasy Football is a huge industry, so there is no doubt in my mind why this made the list.

Insurance policies would cover claims for fantasy football owners whose players suffer major injuries during the season.

The Fantasy Sports Trade Association (FSTA) estimates that 41 million people play fantasy sports annually, with the overwhelming majority — 33 million — engaged in fantasy football.

Source: Risk&Insurance

# 1 Alien Abduction

Aliens. Really? Yes, you can buy alien abduction insurance.

Alien Abduction Insurance (AAI) also known as UFO insurance is supposed to cover you in the event that you can prove that you have been abducted by non-human life forms, more commonly known as “aliens”, provided the terms and conditions of the policy are met along with conditions that would substantiate the proof.

Source: the balance

Final Thoughts

There you have it folks. These are the top 20 weird things you can insure. Which one is your favorite and why? Leave a comment below to let us know what you think. If you have something weird we could add to this list of weird things you can insure, feel free to let us know. Have a great day!

Suggested Reading

  1. Insurance Claims Adjuster Careers
  2. Bankrupt Insurance Companies
  3. Insurance Adjuster Jokes

The Different Types of Insurance: A Detailed List

Today, we’re going to discuss the different types of insurance. This is by no mean an all-inclusive list. In fact, if you can think of something we missed, please leave a comment at the end of this post and let us know.

People can insure almost anything. I’ve heard strange stories of people insuring their luggage, their pets, their voice, their feet and countless other things. To each their own! Different things have different value to different people. Protecting what is valuable and important to you just makes sense!

In my opinion, insurance is a good thing. If nothing else, it can give you peace of mind.

The Different Types of Insurance

The Different Types of Insurance

In the paragraphs below, I am going to share the different types of insurance that I could find online. This is by no means an all inclusive list; however, it is a good starting point with the different types of insurance you can purchase in the marketplace. They are listed in alphabetical order.

What I’ve done is cited different credible sources online, which give a definition of each type of insurance. I’ve also included a link to their website in case you want additional information.

# 1 Auto Insurance

If you lease or own a vehicle, you will want auto insurance. In most cases, it’s required by law.

Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.

Source: Insurance Information Institute

# 2 Aviation Insurance

Own an airplane? I don’t yet, but it’s on my bucket list.

Aircraft insurance that provides liability and property coverage for aircraft. Aircraft insurance, also called aviation insurance, can be purchased for a number of different types of aircraft, including standard, experimental, and vintage aircraft, as well as seaplanes.

Source: Investopedia

# 3 Boat Insurance

Own a jet ski or motor boat of some type. If so, you should educate yourself on boat insurance.

Boat insurance covers your watercraft in the event of damage, theft or any other unpredictable circumstance, depending on the insurer and level of coverage you choose.

Source: Finder

# 4 Business Insurance

Are you an entrepreneur like I am? If so, make sure you protect yourself AND your business!

The term “business insurance” pertains to protecting against operational losses by a business. What type of loss is covered by a business insurance policy depends on the insurance company, the policy wording, and local limitations.

Source: Business Inqurance Quote

# 5 Commercial Property Insurance

If you own commercial property, you should learn more about commercial property insurance.

If there’s any chance of your commercial property being affected by theft, fire or natural disaster, expensive repair needs or even lost revenue – and there is definitely a chance of all of those things – then commercial property insurance is well worth considering. This type of coverage isn’t just commercial building insurance; it covers property such as heavy equipment, computers, raw materials, inventory, supplies, furniture, fixtures and more, whether you rent or own the workspace – it can even cover property left in the care of your business. Consider this type of coverage virtually essential if your location houses physical assets upon which your business’s revenue stream relies.

Source: Bizfluent

# 6 Dental Insurance

It’s pretty easy to take your gums and teeth for granted. However, make sure you take care of those pearly whites!

Dental insurance pays a portion of costs associated with preventive, minor, and some major dental care.

Source: United Health Care

# 7 Earthquake Insurance

Depending on where you live, earthquake insurance might be VERY important.

Earthquake insurance covers your home and personal belongings against seismic damage. It may also pay for your additional living expenses if earthquake damage forces you from your home for an extended period.

Source: Policy Genius

# 8 Flood Insurance

If you live near the water, or in a flood zone, this is something you should consider. In many cases, if you are still paying for the property, you will be required to have it.

Flood insurance protects a structure and its contents from water damage caused by a flood, which is technically defined as a temporary condition where two or more acres of normally dry land are inundated by water or mudflow. Homeowners insurance does not cover damages caused by a flood, so anyone with a home in an area susceptible to flooding should consider purchasing flood insurance.

Source: Value Penguin

As an athlete, I understood the value of my health insurance

# 9 Health Insurance

Your health is your wealth. I learned that a long time ago. This is something most people already have and something EVERYONE should have!

Health insurance is a type of insurance coverage that covers the cost of an insured individual’s medical and surgical expenses.

Source: Medical News Today

# 10 Home Owner’s Insurance

Own your home? Make sure you insure it in case something unexpected happens to it!

Homeowners’ insurance, also called home insurance, provides financial protection in the event that the homeowner’s house or its contents are damaged. It also provides protection in case the insured or her family are held liable for injuries to other people or damage to their possessions while they are on the property.

Source: Bankrate

# 11 Identify Theft

We live in the digital age. Identify theft is becoming more and more common. I hope it doesn’t happen to you, but there is a pretty high likelihood that you will be an identify theft victim at some point in your life. Make sure you protect yourself.

Identity theft insurance is designed to cover some of the costs related to identity theft. It reimburses victims for money spent on reclaiming their financial identities and repairing their credit reports. Those costs can range from phone bills to legal help. Policies often provide specialists who can help guide victims through the identity restoration process.

Source: Life Lock

# 12 Kidnap and Ransom Insurance

I hope this never happens to you or any of your loved ones. If you are from a political family, wealthy family or famous family, this coverage is worth considering.

Kidnap and ransom insurance is a specialty crime coverage that protects against financial losses that arise when an insured is threatened with kidnap, extortion or illegal detention domestically or abroad.

Source: Insurance Business Asia

You buy life insurance because those you love are going to live

# 13 Life Insurance

We’re all going to die at some point in our life. The purpose of life insurance is to protect the loved ones you leave behind.

Life insurance is a type of insurance contract which pays out a lump sum to your dependents should you pass away during the term of the contract. The cost of a policy is determined by a number of factors including your age, health and lifestyle.

Source: Money Super Market

# 14 Long-Term Care Insurance

We all get older every single day of our lives. We will all get “old” one day. Hopefully, you will have the proper insurance to make sure you can live comfortably if you need to live in some type of assisted living facility.

By the time you reach 65, chances are about 50-50 that you’ll require paid long-term care (LTC) someday. If you pay out of pocket, you’ll spend $140,000 on average. Yet you probably haven’t planned for that financial risk. Only 7.2 million or so Americans have LTC insurance, which covers many of the costs of a nursing home, assisted living or in-home care — expenses that aren’t covered by Medicare. “Long-term care is the unsolved problem for so many people,” says Christine Benz, director of personal finance at Morningstar, an investment research firm in Chicago.

Source: AARP

# 15 Motorcycle Insurance

Attention biker chicks and biker dudes! Make sure you insure your motorcycle.

Motorcycle insurance provides financial protection in the event of a motorcycle accident, loss, theft or damage. Motorcycle insurance includes liability coverage in case you are responsible for another person’s injuries or property damage. These policies provide coverage for motorcycles, choppers, fast street bikes or “crotch rockets,” mopeds, and even Segways.

Source: Trusted Choice

# 16 Pet Insurance

Got a pet that you just love? Consider protecting your cat, dog, bird or animal with the proper pet insurance.

Pet insurance (also known as pet health insurance) helps cover the cost of veterinary care if your pet becomes ill or injured. Some pet insurance plans also provide reimbursement for wellness procedures such as vaccinations, heartworm testing and spaying/neutering.

Source: PetMD

# 17 Renter’s Insurance

Do you rent? If so, you might want to consider renter’s insurance.

Simply put, renters insurance (sometimes called tenant insurance) is an insurance policy you pay for to help cover you and your belongings in the event of an incident, including anything from fire to theft. Usually your landlord’s insurance will cover repairs to the property itself—say, if there’s a leaking ceiling—but will not protect your own belongings (the TV and rug that were damaged because of the leak) or the cost of having to live elsewhere if you need to move out during repairs. (Legally, landlords are only responsible to their tenants if they were aware of unsafe conditions and didn’t repair them within a reasonable time frame.)

Source: Real Simple

# 18 Shipping Insurance

If you’re shipping something valuable, you might want to consider shipping insurance.

Shipping insurance is a service that reimburses some or all of the delivery fees and the value of a shipment should it becomes damaged or lost in transit. It can be a complimentary service included by default with shipping charges or as an additional charge through the carrier or a third-party insurance provider.

Source: Ship Station

# 19 Travel Insurance

If you’re traveling abroad on that much needed get away, this is something worth looking into. Also, if you travel for work, this might be worth considering.

Travel insurance could cover medical expenses, trip cancellation or delays, lost or stolen baggage and personal liability while you’re travelling. The type of cover you need will depend on the countries you’re visiting, the activities you’ll be doing and the length of your trip. You’ll also need to state whether you want travel insurance for a single trip, multiple trips or for backpacking.

Source: Compare the Market

# 20 Umbrella Insurance

If you own a home, have a business or just want to protect yourself with extra liability protection, you should explore an umbrella policy.

An umbrella policy is an insurance policy that provides extra liability insurance coverage. The coverage exceeds the limits of the insured’s car, boat, house, etc. An umbrella policy provides an extra layer of security to people who believe they are at risk of lawsuits resulting from damage to other people’s property. The insured also believes that he or she is at risk of lawsuits resulting from injuries in an accident.

Source: Market Business News

# 21 Vision Insurance

If you have your eyes and can still see, you may want to consider vision insurance.

The term “vision insurance” is commonly used to describe health and wellness plans designed to reduce your costs for routine preventive eye care (eye exams) and prescription eyewear (eyeglasses and contact lenses). Some vision plans also offer discounts on elective vision correction surgery, such as LASIK and PRK.

Source: All About Vision

# 22 Weather Insurance

If your business or livelihood can be affected by the weather, make sure you learn more about weather insurance.

Weather insurance is a type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable temperatures or other adverse, measurable weather conditions. Weather insurance is used to insure an expensive event that could be ruined by bad weather, like an outdoor wedding or an outdoor film production.

Source: Investopedia

# 23 Worker’s Compensation Insurance

If you own a business, in most cases the law will require you to purchase this

Workers’ compensation insurance is a vital (and, unless you’re in Texas, legally mandated) part of your business.

Workers’ compensation, or workers’ comp, is an insurance program that provides benefits to workers who were injured or became ill on the job to make up for medical costs and lost wages while they were out of work.

Source: Business.com

What Now?

Quite perhaps the best thing you can do right now is sit down with a licensed insurance agent and find out what types of insurance apply to your unique situation. Assess your situation, get a few different quotes and do what is best for you and your family. You might also want to consult with your CPA and attorney for any suggestions they might have.

Final Thoughts

There you have it folks. These are the different types of insurance I can think of. What did I forget? Leave a comment below to share your thoughts. I look forward to hearing from you.

Suggested Reading

  1. The Future of SIU
  2. Weird Things You Can Insure
  3. Insurance Adjuster Jokes

The Future of SIU: Special Investigations Units

What is the future of SIU for insurance companies (special investigations units)? That is a question that people working in the industry today are asking themselves and to be honest, I’m not sure SIU leadership knows what the future will look like.

My Observations

I have been in the industry for more than 20-years and to a large degree, business really hasn’t changed much. A claims associate gets a claim and if they think it is suspicious, a referral to SIU is made.

What people think is suspicious and when they make referrals however does vary between insurance companies. So, my question is, if all companies must perform according to the various state insurance fraud laws, why is there such a difference in operations?

My experience is some SIU operations measure success simply by the numbers they put on a spreadsheet. Some operations feel the more referrals they receive, the more successful they look.

Most businesses feel they must increase productivity on an annual basis in order to show they are being more profitable. An example would be; if I made 10,000 widgets and sold them in 2017, then I need to manufacture 12,000 widgets and sell them in 2018.

This is what some SIU operations try to do each year, simply increase the number of referrals each year and we can say we are successful. The company is always setting the bar higher and measure success at how closely goals are achieved or exceeded.

But is that really the best way to measure success in an SIU program? I don’t feel it is proper for an SIU program to constantly try to increase their numbers (criminal investigations) just to satisfy a spreadsheet. Would it not be better to know the actual truth about how much fraud is being attempted, rather than pretending you are successful by simply increasing numbers any way you can?

What I believe is the better method, is for companies to strive to identify the proper claims that need investigating and perform professional investigations that meet state statutes. This is certainly not easy to achieve, so many programs take the easy way out by just increasing numbers.

Suspicious Insurance Claims

Suspicious Insurance Claims

Nearly every state has an insurance fraud law that indicates insurance companies must identify suspicious claims and investigate them for potential fraud. After the investigation is completed, if there remains even a mere suspicion that fraud is possible, the claim must be referred to the proper state agency for further investigation.

Simply put, our SIU operations are performing preliminary criminal investigations on potential insurance fraud. So, is it good customer service to recklessly require paying policyholders to endure a criminal investigation by SIU when there is no reasonable suspicion fraud exist in the claim?

Furthermore, is it a good use of assets to require SIU investigators to spend time and resources investigating claims that do not rise to reasonable suspicion of potential fraud? At this point, most everyone will be in agreement that SIU should only investigate claims that have real fraud indicators, but what is a fraud indicator is where things vary widely throughout SIU programs.

I recall speaking with a senior Vice President of a smaller regional insurance company years ago and she indicated that at her company every stolen vehicle claim went to SIU for investigation. At the time I lived in south Florida and I gave her a scenario of a real claim as an example of what I felt was a flaw in her thinking.

In my example a young mother went to the grocery store in south Florida where the temperature was hot and humid, taking along her two small children. She purchased hundreds of dollars worth of groceries, much of which was frozen goods, and then found her car missing from the parking lot after she checked out of the grocery.

As I tried to explain, it would be unusual for a young mother to fight with two small kids at the grocery store, spend hundreds of dollars on food that could go to waste while the mother waits on a police report and then try to find a ride home, all to submit a fraudulent stolen vehicle claim.

Simply put, there were no fraud indicators in the claim. I felt the claims associate could easily identify potential fraud indicators, or show there are none, by obtaining the police report and taking a statement from the insured. However, the truth came out that this carrier was really more interested in having someone handle the claim than actually perform a fraud investigation. I’m not sure this type of program actually meets the state insurance fraud laws as they are written.

Choosing Money Over Compliance

Choosing Money Over Compliance

What I feel is even a worse example of failing to meet the fraud laws of investigating suspicious claims, is when a company chooses money over complying with the fraud laws. Is it proper for an insurance carrier to pay what they describe as nuisance payments to individuals who file claims that contain fraud indicators, but no fraud investigation has been performed?

Some companies feel it is more profitable to make small payments, (I have seen several hundred dollars to more than $5,000), to someone so they will just “go away”. Many of these claims have fraud indicators, but a business decision is made where the company feels it is more profitable to pay the people than to risk an investigation where it may cost the company more in a settlement.

I’ll use the example here that I always gave my investigators when they thought they knew the answer without asking the question. If you can predict what will be said or what will happen that accurately, please tell me this week’s lottery numbers. Carriers that choose to operate under this method are not real partners to fighting fraud and I doubt they are complying with the state statutes concerning investigating insurance fraud.

One of the Biggest Problems with SIU

One of the biggest problems I have seen with SIU programs is the lack of knowledge or training on what is the real purpose of the program as seen by claims leadership.

If a program wants to maximize its effectiveness and profitability, everyone in the organization should be on the same page as to how the SIU program should work. Over the years I have seen claims leaders who want SIU to perform an investigation, not because any fraud indicators existed, but because the claim facts were complicated or confusing.

We have even been asked to investigate just because of the potential high dollar value of a claim or because a crime was committed, but no fraud against the company. Some leaders think SIU is the insurance companies police department and have the same authority as a police officer, which we don’t.

Claims leaders often don’t understand why SIU should not be used to simply take photos, obtain police reports, or perform an interview on claims that have no indication of fraud.

They view the investigator as a simple employee who is at their beck and call, not someone who is trying to perform criminal investigations as required by law. I also question in these instances if it is more profitable to use an investigator when other cheaper resources are available?

States have these fraud laws on the books for a reason and I suspect in the future insurance companies will be subject to following the laws more closely. State lawmakers typically don’t care whether a company is profitable, but are more interested in seeing that their voters are not taken advantage of through higher premiums or unfair trade practices.

The Future of SIU

Ideas for SIU Leaders & Senior Leaders

SIU leaders, and more importantly, senior leaders within each insurance carrier have a responsibility and an opportunity to better educate their employees on how to meet the insurance fraud laws, while at the same time working to be more profitable as an organization and keeping premium costs as low as possible.

I believe most of these issues on how to use the SIU program can best be addressed by senior claims leaders understanding they don’t have all the answers concerning how fraud investigations should be performed.

They should engage successful SIU leaders who have considerable knowledge of the fraud laws and who can assist in developing training programs that will be given to every employee within the company, regardless of rank, title or position, on a continual basis as to how the SIU program will be used.

The goal of this training is to eliminate confusion on what duties SIU should be responsible for, ensure that each states fraud laws are being met, that the company as a whole is committed to preventing fraud and that every employee knows the importance of a good partnership with SIU.

About the Author

gary clineThis article was contributed by Gary Cline of Georgia. Gary spent 20 years in law enforcement, most of that time in either the special investigations unit or organized crime division.

After leaving law enforcement he spent 20 years in the insurance industry, overseeing fraud investigations. His areas of responsibility have covered more than 20 states, from the east coast to the west coast.

He retired in July of 2018, but still has an interest in the future of special investigations units within the insurance industry.

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Are Insurance Claims Tax Deductible?

Today, I want to answer the million dollar question: “are insurance claims tax deductible?” This information was collected from independent research online. Please keep in mind I am NOT an insurance agent, CPA or attorney.

Insurance Claims are not tax deductible, but losses not covered by insurance are tax deductible. Any portion of your claim not covered by insurance can be deducted with a few guidelines.

If your personal property is damaged by a casualty such as fire, lightning, windstorm, or hail, or is stolen, damaged, or destroyed you may be able to claim the loss on your taxes. Use the IRS form 1040 to itemize your deductions to claim a loss from an insurance claim.

If you suffer damage/loss, the amount that you can claim is either the resulting decrease in fair market value of the property or the Adjusted Basis in the property before the loss (whichever is smaller) – Adjusted Basis is your cost, increased by capital expenditures or decreased by depreciation deductions.

The Fair Market Value of the property just prior to the loss is what you could have sold it for on the open market. Figuring the decrease in the Fair Market Value can be done with an appraisal or the cost of actual repairs.  If the item was stolen the resulting fair market value is $0.

Adjusted Basis is the measure of your investment in the property you own.  For property you buy, your basis is the cost to you. Additions or permanent improvements to the property can increase the Adjusted Basis. Earlier casualty losses and depreciation deductions can decrease your basis. After determining the smaller figure, you subtract the insurance reimbursement.

For example, assume a fire severely damaged your home. You had bought the house for $50,000 (adjusted basis) a few years ago, and it was appraised at $75,000 before the fire. It was worth only $15,000 after the fire. Your insurance company paid you $45,000 for the loss. Here’s what you do:

    Adjusted basis in the property before the loss: $50,000

    Decrease in property’s FMV: $60,000 ($75,000 minus $15,000)

    Loss: $50,000 (smaller of 1 or 2, above)

    Subtract insurance reimbursement of $45,000

    Amount of loss: $5,000

Ameriprise Financial

From the amount of loss there is a $100 deduction for each occurrence.

You must reduce each casualty or theft loss by $100 when figuring your deduction. Apply this rule to personal-use property after you have figured the amount of your loss.” IRS.Gov

In the example above you would take $5,000 and reduce it by $100, so the deduction would be $4,900.

After the $100 rule has been applied, the claim deduction must be reduced by 10% of your Adjusted Gross Income.

You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. Apply this rule after you reduce each loss by $100IRSZilla.com

Are Insurance Claims Taxable Income

Are Insurance Claims Taxable Income?

Generally, Insurance Claims in the United States are not considered taxable income. In some circumstances you do have to declare the income on your taxes.

Generally, if you’re paying premiums yourself, such as for homeowners’ insurance and auto insurance, then your insurance benefits are not a taxable event,” says Adam Sherman, CEO of Firstrust Financial Resources in Philadelphia. “Your benefits are reimbursement for expenses, rather than income.” Michelle Lerner/BankRate

When you are involved in an accident there are several aspects to the claim you file: Property Damage, Personal Injury, and Medical Expenses. The Internal Revenue Service does not consider Personal Injury taxable income under any circumstances.

Medical Expenses reimbursement may require an adjustment on your taxes. If you deducted medical expenses related to the accident on your taxes, you will need to amend the deduction when you receive payment for your medical expenses.

Property Damage from an accident or homeowners claim may be taxable income.

“If you receive insurance money for damage to your car, the IRS does not consider that taxable income. Instead, you have received an adjustment to the cost basis you have in the property. Therefore, if you paid $20,000 for the car, and receive $5,000 for damages, your cost basis is now $15,000, which only affects your taxes when you sell the vehicle.” Tom Streissguth/Zacks

Property Damage settlements can affect the Adjusted Basis cost of property, when you sell the vehicle or property there may be tax liability then. If you receive more from the insurance settlement than the value of the property, the excess over the property value could be taxed as capital gains, depending on the amount and current tax laws.

Settlements for lost wages, punitive damages, and emotional distress are considered taxable income. The IRS views lost wages settlements as income you would have paid taxes on had you been able to work.

“Additionally, short- and long-term disability insurance proceeds, which are both designed to provide you with income if you’re unable to work, are taxed the same way income is. You’ll need to report these payments as earnings when you’re filing.” ValuePenguin

There are a few stipulations on Long- and Short-Term Disability income taxes. If both you and your employer pay the premium for your disability insurance, only the portion of the benefit that your employer pays for is taxable. If you pay the premium and your employer does not contribute, you do not owe taxes on disability income.

If your disability income is through a cafeteria plan and you do not include the amount of premiums as taxable income to you, it is considered an employer paid plan and the disability income is taxable.

Are Insurance Claims Taxable Income in Canada?

Are Insurance Claims Taxable Income in Canada?

Automobile accident damage payouts are not taxed in Canada. The Canadian Revenue Agency is straightforward in their rules about Automobile accidents.

The Canada Revenue Agency does not treat compensation for motor vehicle accidents as taxable income.” Vladimir Zhivov/Zhivov Personal Injury Law

Pain and suffering and medical payouts are not taxable in Canada. Whether they are in one lump sum or a structured settlement paid over time. For structured settlements to remain tax free certain conditions must be met:

  • The award must be made in respect to personal injury or death
  • Plaintiff and insurer must agree on what schedule the money will be paid out at
  • The insurer must purchase an annuity contract that is nontransferable, non-commutable and non-assignable
  • The insurer will remain liable to make payouts according to the agreed settlement.

Property damage claim payouts are also tax free in Canada. Payouts for damage to your property or theft of your property are not taxable by the Canadian Revenue Agency.

Disability Insurance payouts can be taxable, depending who paid the insurance premiums.

The general tax rule is that if you paid the premiums under the disability insurance policy, any periodic disability payments will be tax-free. But, if your employer pays the premiums under the DI policy and does not report them as a taxable employment benefit to you, any benefits received in the future will be fully taxable.” Brent Lewin/Bloomberg Files

Are Insurance Claims Taxable Income in the United Kingdom?

Are Insurance Claims Taxable Income in the United Kingdom?

Property and Casualty claims payouts, auto and homeowners, are not taxable income in the United Kingdom. Claims payouts from insurance that you paid for with post-tax income are not generally taxed.

In the UK there is no table for assessing bodily injury claims. The courts judge the cases based on precedents and the particulars of the individual case. However, in 1992 an important judicial education institution developed guidelines.9 These are revised regularly and have become the most widely used instrument to calculate compensation for bodily injury claims. These so-called “JSB Guidelines” prescribe a certain compensation range for each injury, including both pain and suffering (non-economic damages in the widest sense) and every other form of non-economic loss.” Lorenzo Vismara (Milan)/Genre.com

Pain and Suffering and medical payouts in the United Kingdom are not taxed. Medical payouts in the UK are split between lump sum and annuities, with no further stipulations.

Death Benefits for anyone killed in an auto accident paid by the government are also not taxable.

In the UK, non-economic damages always total EUR 13,686 (GBP 11,800). This lump sum is fixed currently as the so-called bereavement damage. It is due as a one-off payment and divided among the beneficiaries explicitly named in the law:6 in case of the death of a child under 18, only the parents; if the victim is married, only the spouse.” Lorenzo Vismara (Milan)/Genre.com

Disability Insurance are not taxable, if the premiums are paid with taxed income.

“Payments received from policies taken out to protect a person from sickness, disability or unemployment will generally be tax free where the premiums were paid out of taxed income.” GOV.UK

In the United Kingdom no property or liability insurance settlement is taxed, but some disability income is taxed.

Are Insurance Claims Vatable?

Are Insurance Claims VATable?

Insurance claims are subject to VAT.

AXA Insurance, provided the following statement: “If a customer is VAT registered (or partially registered), they can recover VAT from HMRC in the normal way.

“So, an example here is an invoice for repair of £1000 plus VAT (where the excess on the policy is £200).  In this case, we pay £800 (and the customer pays the repairer the £200 excess, plus the VAT – another £200).” Licensed Transport Uncovered

If you are under a flat rate VAT you will be unable to recover the VAT from the HRMC and your insurance company should not charge you for that cost.

Large settlements can be a burden for small businesses. In these cases the VAT is charged each time the insurance company makes a payout, allowing the business to break the charges up in to many smaller payments.

With first party liability claims the type of payout effects how the VAT is charged:

AXA then went on to raise the difference in the type of settlements available to policyholders, specifically cash settlements.  The spokesperson said: “It’s a bit different when the customer elects not to have the damaged item repaired or replaced and instead opts for a cash settlement.  In this case, no VAT is going to be incurred, (as no service will have been performed on their behalf), so VAT would not feature.” Licensed Transport Uncovered

Property Damage claims incur VAT if the property is not demolished and rebuilt. At the current 20% rate this can be a significant amount for the insured in large property claims.

However, an insurance claim often is filed for only partial damage to a property, and a total rebuild is not necessary. In such situations, VAT typically will apply to the repair costs. As that VAT is unlikely to be recoverable, the costs of such a claim will rise. With the increase in VAT,  debate around the economics of repairing or rebuilding will likely become more common. “ David Damsell

There are some reliefs for VAT on property claims – if a building has been empty for more than 2-years, is a ‘relevant residential’ property such as student housing or a home, or is a ‘charitable’ building such as a church. In these cases the VAT is reduced from 20% to 5%.

It’s important that adjusters be aware of the VAT rules; the supplier deems the amount of VAT, but it is the responsibility of the adjuster to verify it is correct. Solid knowledge of VAT and the rules surrounding the reliefs can save insured’s significant premium.

“VAT incurred in insurance claims can be significant, especially for property-related expenditure.  It is important for both insurers and their appointed loss adjusters to ensure that maximum relief is obtained whenever possible. They also should not assume that the supplier has determined the correct VAT liability. Actual VAT savings can be achieved by understanding the relief available, using loss adjusters with significant VAT knowledge and, in complex scenarios, utilizing the knowledge of external VAT advisors.” David Damsell

Final Thoughts

In summary, these are our answers to “are insurance claims tax deductible?” Any sources we used are cited in the article. Before making the decision as to whether or not you can deduct something, please seek out the advice of a CPA or licensed tax professional. They will be on the up and up about what you can and what you cannot deduct.

What are your thoughts about this subject? Leave a comment below to let me know what you think. I look forward to hearing from you.

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Insurance Claims Adjuster Overview

What is an insurance claims adjuster? What do they do? How much money do they make? How do you become one?

This post is going to tell you EVERYTHING YOU NEED TO KNOW about insurance claims adjusters, to see if this might be a job or career you want to pursue.

what is an insurance claims adjuster

What is an Insurance Claims Adjuster?

Claims Adjusters are insurance representatives that negotiate and settle claims. They can have different titles to include:

  • Claims Representative
  • Bodily Injury Claims Adjuster
  • Material Damage Claims Representative

These titles signify what kind of claims the adjuster routinely handles.

There are multiple types of adjusters. Staff adjusters work full-time for one insurance company. They handle claims solely for that insurance company and their goal is to settle claims to be fair for all parties.

On the other hand, independent adjusters work as contractors for multiple insurance companies and travel to areas impacted by catastrophes or major weather events.

Finally, Public Adjusters work on behalf of policy holders to help claims be settled in their favor.

Claims adjusters’ jobs include:

  • Investigate insurance claims
  • Determine if the policy covers the loss
  • Verify that claims are not fraudulent
  • Negotiate settlements
  • Authorize Claim Payments

Adjusters inspect property damage or personal injury claims to determine how much the insurance company should pay for the loss. They might inspect a home, a business, or an automobile.” BLS.Gov

Claims adjusting is an investigative job. Collecting police reports, witness statements, conducting interviews with everyone involved in an incident, and visiting the site of the accident is a major part of an adjuster’s job.

“Regardless of what type of insurance claims adjuster you are, you will be doing investigative work. Once an insurance claim is filed, a claims adjuster is called in to take over the processKaplan Financial Education

Determining fault and coverage after the investigation requires knowledge of insurance, insurance law, and previous court decisions. Adjusters must understand all aspects of the insurance policy to make coverage determinations.

Negotiating claims settlements to be fair for both parties is the one of the hardest parts of being an adjuster. Settlements can include property damages, bodily injury, pain and suffering, and depreciation.

Being on call can be challenging. Some companies expect that phone calls and emails will be answered every day.

Catastrophe adjusters travel for weeks or months at a time. Being away from family and traveling into disaster areas that may have limited food, water, and power to settle claims can be challenging, but it is rewarding to help people affected by natural disasters.

insurance claims adjuster training

Insurance Claims Adjuster Training

Insurance Claims Adjusters are required to have their high school diploma or GED. Many states require a class and exam prior to becoming an adjuster.

Several colleges offer Risk Management and Insurance degrees, but most companies do not require such a degree. If you are pursuing a degree with plans to become an adjuster, a degree in business, communications, or business analytics translates well to the skills you need to be a successful adjuster.

There are industry designations you can pursue to further your training and make you more employable. These designations show a dedication to the insurance industry and prove your knowledge.

All the certifications listed here require multiple classes and tests to obtain the certification. They are the best gauge of knowledge within the industry currently.

If you want to pursue becoming an adjuster, Vale offers certification classes for adjusters. Vale is ‘ivy league’ of trade schools, offering classes on property and casualty adjusting, negotiations, workers compensation, and specialty lines. They are the leading trade school for insurance adjusters.

“There are many schools that will teach you how to be an adjuster. Vale is the “Harvard” in the CAT adjusting arena. Independent adjusting firms take a closer look when you have Vale on your resume. “ Rebecca Wheeling

The Associate in Claims certification is for claims professionals by The Institutes. The AIC designation covers claims handling principles, property damage claims, bodily injury claims, and liability claims practices. It is a nationally recognized designation showing skill and knowledge. The course is a 13-week course with 4 tests.

“Obtaining an AIC designation demonstrates a commitment to the profession and continuing education, and it can be a great asset when it comes to securing a job in the field” Julia Kagan, Investopedia

The Senior Professional Public Adjuster designation is considered a college level designation by many in the adjusting field. The designation covers ethics and advanced adjusting and claims principles for property and liability claims. 83% of people who completed the designation feel like it fast tracked their career.

The American Education Institute has designations for multiple claim types – property, automobile, fraud, workers comp, and casualty. These designations are not as well known as the AIC and SPPA, but they are in-depth programs on each specialty.

The Associate in Risk Management designation covers the principles of risk and mitigating the risk. It is one of the top 5 designations according to Associate PI, Insurance Education.

This is another of the many insurance designations administered by the Insurance Institute of America. The ARM™ teaches you the science of risk management and provides you with the necessary skills and understanding to avoid, reduce and manage risk. Associate PI

While there is no college degree for insurance adjusters, having a designation shows dedication and proves your knowledge to employers.

insurance claims adjuster license

Insurance Claims Adjuster License

Currently, 34 states require an Insurance Claims Adjuster License. In Colorado, District of Columbia, Illinois, Iowa, Kansas, Maryland, Massachusetts, Missouri, Nebraska, New Jersey, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Virginia, and Wisconsin no training or licensing is required.

If you live in one of these states and want to adjust claims outside of your home state, a Designated Home State License can be secured from many states. This license lets you get your out-of state adjusters license in the states you need to work in. Florida’s Designated Home State license is accepted in the most states and is the quickest to secure.

There are pre-licensing courses available online for all states, even those where it is not required. Online courses will help you pass the state licensing exam. In addition to a state specific licensing course completing the Associate in Risk Management or one of the certificates from the American Education Institute can help you pass the pre-licensing test.

Alaska does not require pre-licensing, but they do require 6-months experience in certain aspects of the insurance industry within the last two years and passing a competency test.

California requires 4,000 documented, compensated hours in the insurance adjusting field to take the licensing exam, after the licensing exam is completed proof of a $2,000 bond of Insurance Adjuster and application for license must be submitted to the state of California.

New York does not require a pre-licensing course, but does require a competency exam, five Certificates of Character, and a $1,000 fidelity bond to secure your adjuster license.

Vermont requires two year’s experience handling claims, special training sufficient to waive the two year’s experience requirement, or be employed and supervised by a licensed adjuster for three years. Once this requirement has been met you can apply for your license, and pass the competency exam to secure your license.

Washington requires one year experience working as a full time, salaried insurance company adjuster, or completion of the Associate in Claims program, Chartered Property Casualty Underwriter program, or Property Claim Law Specialist, or the state administered adjuster-trainee program that requires 960 hours of adjusting experience in a 6-9 month period while you are a salaried insurance company employee. After these requirements have been met you must pass a competency test to secure your adjuster license.

Arizona, Connecticut, Delaware, Idaho, Kentucky, Louisiana, Maine, Michigan, Montana, New Hampshire, New Mexico, North Carolina, Oklahoma, Oregon, Rhode Island, South Carolina, Utah, West Virginia, Minnesota, Nevada, Hawaii, and Wyoming require adjusters to pass a competency test to secure their adjuster’s license, but has no pre-licensing courses that are required.

Alabama, Arkansas, Florida, Georgia, Mississippi, Texas, and Indiana require a pre-licensing course and competency test for an adjuster’s license. The pre-licensing course varies for each state. Most are 40-hours of online or classroom time for each type of license applied for.

In addition to the pre-licensing, experience, and competency testing all the states, except Idaho, require you to be 18-years old. Idaho requires you to be 21-years of age to apply for a license. Most states also stipulate you must be of good character with no charges or convictions of breach of trust or fraud.

insurance claims adjuster jobs

Insurance Claims Adjuster Jobs

Insurance Claims adjuster jobs come in three varieties. Staff Adjusters that work directly for insurance companies, Independent Adjusters that work for adjusting firms or are freelance contract employees, and Public Adjusters that work for insureds.

All three career paths require strong analytical skills, excellent communication and interpersonal skills, good investigative skills, and solid math skills. Even though the employers are different, the knowledge and basic skills are the same for staff adjusters as independent adjusters.

In 2016 there were over 300,000 claims adjuster jobs in the United States with an expected increase of 2% per year until 2026. While it is not a fast-growing field, insurance is a recession proof industry as claims happen in good times and bad times. Job stability in the insurance industry is linked to the financial stability of the company you are employed by more than the general economy.

Owl Guru says “67% of them said they were satisfied with their job and 43% said they find that their job makes the world a better place or helps to make someone else’s life better.”

Many Staff and Independent Claims adjusters are based from their home and travel to see claimants and insureds. There is flexibility in their work hours and freedom of being on the road, but caseloads and contact quotas required by some companies can make day to day life stressful as a claim’s adjuster.

Independent Claims adjusters travel to catastrophe and emergency areas for weeks or months at a time to settle claims in these areas. Since these are contract positions there is less job stability as an independent adjuster than as a Salaried Adjuster, but there is freedom to work when you want to, go where you want to, and take time off as needed.

If you enjoy making a positive difference in the world and communicating with people, being an insurance claims adjuster is a great career.

insurance adjuster salary

Insurance Adjuster Salary

Insurance Claims Adjuster Trainee’s salaries average $43,757 according to Payscale, with the top of the range being around $52,000. Most people stay in the trainee position for 2 to 5-years before being promoted or changing companies to an Adjuster position.

Claims Adjuster I salary averages $46,606 per year according to Salary.com. As you gain experience and move into higher roles such as Claims Adjuster II the average salary is $62,380, and a Claims Adjuster III averages $77,627.

With a few year’s experience as an insurance claims adjuster you can choose what area and specialty you want to pursue. Specialty lines adjusters, Fraud Adjusters, and Claims Managers can reach six figures with many companies.

Independent Adjuster salaries according to ZipRecruiter average $64,000 but range from $18,000 to $141,000. There is a wide range of salaries as independent adjusters; most positions are contract positions, and many are temporary for catastrophes and emergency situations. These factors affect the average salary.

If your goal is a comfortable living, working as an adjuster for an insurance company provides a great salary, good benefits, and room for advancement. As you gain experience and handle more complex claims or manage people a steady increase in salary is expected.

Commercial Lines Adjusters are in high demand and average 20% higher base salaries than personal lines adjusters. Special Investigative Unit or Fraud adjusters average starting salary is $64,000 according to ZipRecruiter.

There are many specialties within the insurance industry, finding a topic you are passionate about, becoming a subject matter expert, and specializing can mean a huge difference in pay in the long run.

Final Thoughts

There you have it folks. Hopefully, this post gave you a great overview of what an insurance claims adjuster does. On a side note, I would love to hear your thoughts. If you have spent time as an insurance claims adjuster, I would love to hear from you. Please leave a comment below to let me know what you think.

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