11 Rules for Reading any Insurance Policy

I know you don't like to read your insurance policies, but let's face it you do need to. You're paying for them and you may eventually need to make a claim.  

Rarely do insurance brokers, even those who have been in the business for decades, take the time to read an entire policy. 

When they do so, they are generally seeking a specific answer or researching a problem -- undertakings that require them to review only individual parts of the coverage form and/or its applicable endorsements to determine the required answer or opinion.

Whether reading an entire policy or only sections, these 11 Rules can be applied in reading the policy form to make finding the needed answer easier and quicker.

These are not shortcuts to reading the policy, as there is no shortcut to reading any legal document, just pointers towards correct policy interpretation and application. Here are the 11 Rules for Reading any Insurance Policy:

1.  Ascertain who qualifies as an insured.
2.  Confirm that all Forms and Endorsements are attached.
3.  Read the Insuring Agreement first
4.  Read the Exclusions.
5.  Read the Exceptions to the Exclusions.
6.  When the policy refers to another section, read that section immediately.
7.  Pay attention to the conjunctions used in a list.
8.  Pay attention to key words and phrases.
9.  Read and understand the Definitions of Specifically Defined Terms.
10.  Understand and make sure all the policy conditions have been met.
11.  Confirm the coverage limits are adequate for the loss.

Do you have any questions concerning any of your policies, email me your questions. 

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Know These Three Health Care Terms Before Obtaining Obamacare

Until Obamacare is repealed and replaced, you are stuck with it unless the new President is a Republican. 

If Hillary becomes President, Obamacare will continue and both the cost and the penalties will just get worse along with your choice of doctors and hospitals being seriously diminished. 

Nevertheless, here are the three health insurance terms you need to know before buying an Obamacare policy or just a regular health insurance policy.

Premium

The total amount paid to the insurance company for health insurance coverage. This is typically a monthly charge. Within the context of group health insurance coverage, the premium is paid in whole or in part by the employer on behalf of the employee or the employee's dependents. Unearned premium is the portion of a premium already received by the insurer under which protection has not yet been provided. The entire premium is not earned until the policy period expires, even though premiums are typically paid in advance.

Deductible

The amount of loss paid by the policyholder. A specific dollar amount that your health insurance company may require that you pay out-of-pocket each year before your health insurance plan begins to make payments for service or claims. Not all health insurance plans require a deductible. As a general rule (though there are many exceptions), HMO plans may or may not typically require a deductible, while most Indemnity and PPO plans do. In general, the bigger the deductible, the lower the premium charged for the same coverage.

Coinsurance

The amount that you are obliged to pay for covered medical services after you've satisfied any co-payment or deductible required by your health insurance plan. Coinsurance is typically expressed as a percentage of the charge or allowable charge for a service rendered by a healthcare provider. For example, if your insurance company covers 80% of the allowable charge for a specific service, you may be required to cover the remaining 20% as coinsurance. After paying 80 percent of losses up to a specified ceiling, the insurer starts paying 100 percent of losses.


Call (773) 641-3201 for answers to your health care questions or to get a quote. 

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