Your comments, questions and suggestions are always welcome. Email: scott@icofmaine.com


Coinsurance; What You Don't Know Can Hurt You
The word "coinsurance" causes a great deal of confusion to insurance buyers. The word has two very different meanings in the insurance industry! To make a quick point - coinsurance never helps the insured at the time of a claim. Why is it in your insurance plan?

See our article for a short course on coinsurance and how it can impact your claims. http://www.icofmaine.com/content/newsletter-coinsurance.htm.


OSHA
I just finished a five-week training program by OSHA (one day a week) over-viewing the rules and regulations of safety. The program was put on by the Maine State Department of Labor. I thought the classes were well done. See their website for info on sessions in your area - http://www.state.me.us/labor/bls/saftwkrs.htm.


W/C Experience Modification Impacts Premiums
Companies with workers' compensation premiums over $4,500 have, as part of their premium, an experience modification. The "Mod" is a ratio of expected losses to actual losses. A mod of 1.0 indicates that the insured company is at industry average for workers' compensation claims. A mod of less than one (.95 for example) indicates experience that is better (lower losses) than industry average. Conversely, a mod of that is greater than 1.0 indicates greater losses than average.

Modifications can have a dramatic impact on premiums. A mod of 1.15 increases the premium you pay by 15%. The actual calculation of the experience modification is a fairly complex mathematical formula with more than 100 variables. Errors in modifications are not uncommon.

Last month I announced the launch of a new web based service to help employers control their workers' compensation premiums, http://www.modmanager.com.

Using your experience modification worksheet (provided by your insurance agent or company) input your data and get your report instantly. The site is designed to help business owners understand the impact losses have on the experience modification. Give the site a try and tell me what you think. The site and the report are free.


Auto Coverage Symbols
Commercial auto policies specify the types of coverage provided for an insured by using symbols to indicate the breadth of the protection.

The declarations page of your commercial auto policy outlines coverage areas (liability, uninsured motorist, medical payments, etc.) with coverage symbols that apply to the type of insurance. The applicable symbols are numbers 1 through 9. Insurers use these symbols to designate the coverage applicable to a specific class of insurance.

Symbol "1" is the broadest - "any auto". Symbol "9" provides coverage for non-owned vehicles only. Using symbol "7" reduces the coverage to claims from vehicles listed on the policy only. Insurers sometimes use combination of symbols - 8 and 9, for example, to provide coverage for hired and non-owned autos.

Symbol 1 in the liability section would provide coverage for any auto liability claim brought against an insured. Symbol 7 in the liability section would limit liability coverage to claims that come from a vehicle listed on the policy - significantly restricting the coverage.

Have questions or need clarification? Call me at 207.284.0085.


The Key To Saving Money At Policy Renewal
Start early! The current insurance marketplace is a mess. Start the renewal process early - 90 to 120 days prior to your policy expiration. Meet with your agent. Find out what he or she expects. Consider getting other quotes. Bring in an expert. Above all, start early.


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My Other Newsletters
Subscribe to my other newsletters. For bankers I offer a special monthly Bank Insurance Newsletter filled with insurance info unique to bankers. I also publish the Weekly Workers' Compensation Tip designed to save business owners premium. Use the link at the bottom of this newsletter to update your subscriptions.

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Life Insurance
How secure is your life insurance? Do you have the right kind? Is the policy set up correctly? I can help. Call 207.284.0085 or email me at scott@icofmaine.com. Remember, I don't sell insurance so I'm unbiased.

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Click here for details: www.icofmaine.com/ispeaker.html

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Scott Simmonds, CPCU
Insurance Consultants of Maine, Inc.
Saco, ME 04072-2431
Phone 207 284-0085
Fax 801 991-4027
scott@icofmaine.com
www.icofmaine.com
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Insurance Consultants of Maine, Inc. is a fee-compensated insurance and risk management advisory firm. We improve our Clients’ operations by controlling their cost of risk including their cost of insurance. Insurance Consultants of Maine helps businesses manage, develop and implement insurance and risk management plans tailored to their unique needs.

Our Service Always Pays For Itself.

Comments regarding insurance policies or products in this newsletter are for information purposes only and do not constitute an endorsement. We accept no fees or payments of any kind from any insurance organization or any company mentioned in this newsletter.

© 2003 Insurance Consultants of Maine, Inc. All Rights Reserved.

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