Yesterday two articles appeared in the Toronto Star that really made my day.
http://www.moneyville.ca/article/1072191--devastating-accident-leaves-cyclist-struggling-with-insurance-payout
http://www.moneyville.ca/article/1072107--roseman-why-our-accident-benefits-system-may-be-the-worst?bn=1
These articles outline at least some of the concerns that we have with the system.
I hope that more will follow. However I am very happy to say that the second article by Ellen Roseman actually spoke of Mr. Dalton McGuinty.
This is the first time that anything on this topic was written that shows the struggle that people go through with regards to the horrid system that we live in.
If one was to read the article they would get a better understanding of exactly what is going on, what the benefits really look like and what "full coverage" really means.
I would like to see someone asking questions. If any of you that read my blog have questions regarding your own experience with Insurance or have been in an accident and need some advice, don't hesistate to comment on the articles or E-mail me. I am always happy and willing to respond to anyone's query.
In my next article I will be outlining the pros and cons of the different Insurance Companies out there. Both in the USA and Canada.
But for now. I am happy. I am happy that these articles were posted, and I am happy that maybe, sometime in the future, something will be done.
Thursday, 20 October 2011
Friday, 14 October 2011
Something to be aware of!
Medical Management of a file.
This is the new line every representative from every law firm will get if they were to call State Farm to attempt to settle a claim.
Due to the fact that recently State Farm was at risk of going bankrupt, they decided to halt the settlement of claims until the situation became more stable which meant the following:
1. They will deny benefits arbitrarily and refuse to pay due to the most minor, vague reasons possible.
2. They will refuse settlement proposals stating that they are interested in "medically managing" the file.
- Side note-
No Insurance Company is obligated to close claims however every company aside from State Farm will at least attempt to close files, not because it's the law, but because they want to get rid of the claim.
3. After the reception of a bail out package from the U.S.A State Farm continues it's policy of "medically managing" the claims.
-Another side note-
medical management does not include any sort of treatment, they will deny any and all treatment plans submitted to them.
My take?
They don't want to settle claims because they would rather go to mediation/arbitration... Why? That's the question. It's true that Mediation is no longer a threatening tool for the insurance industry, however it takes 9 months + to schedule a mediation which means that for 9 months the file becomes inactive and State Farm get's to save their money.
This is just one of the many infractions with State Farm that I will be discussing throughout the life of this blog.
This is the new line every representative from every law firm will get if they were to call State Farm to attempt to settle a claim.
Due to the fact that recently State Farm was at risk of going bankrupt, they decided to halt the settlement of claims until the situation became more stable which meant the following:
1. They will deny benefits arbitrarily and refuse to pay due to the most minor, vague reasons possible.
2. They will refuse settlement proposals stating that they are interested in "medically managing" the file.
- Side note-
No Insurance Company is obligated to close claims however every company aside from State Farm will at least attempt to close files, not because it's the law, but because they want to get rid of the claim.
3. After the reception of a bail out package from the U.S.A State Farm continues it's policy of "medically managing" the claims.
-Another side note-
medical management does not include any sort of treatment, they will deny any and all treatment plans submitted to them.
My take?
They don't want to settle claims because they would rather go to mediation/arbitration... Why? That's the question. It's true that Mediation is no longer a threatening tool for the insurance industry, however it takes 9 months + to schedule a mediation which means that for 9 months the file becomes inactive and State Farm get's to save their money.
This is just one of the many infractions with State Farm that I will be discussing throughout the life of this blog.
Wednesday, 12 October 2011
Credit Rating to Effect Insurance Coverage?
Something that came to my attention a while ago had rocked me to the core.
I will, in later posts when I have more time, be discussing the different regulations that have effected the policy holders in Ontario in many ways. However, I'd like to point out a new way which the Insurance Companies are going to be using to get even more money out of people.
Introducing: Credit score to be used by Insurance Companies:
Explanation:The Credit Scoring Working Group is reviewing and examining the issues and options around the use of credit scoring models in underwriting and other ways that insurers use data from credit rating agencies. The working group reports the results of its review to the CCIR, whose individual members may apply these as they consider appropriate.
What does this really mean: If one was to read the document that I am posting below one would find out that basically Insurance Companies are considering using credit ratings as an additional way to hike up the fees on their clients for Insurance coverage, however this time it's beyond ridiculous.
Person A: Great driving record but made a few bad financial decisions and therefore has a lower credit rating.
Person B: Has lot's of money, but isn't that great of a driver.
Person A if this comes into effect: Rate goes up to be punished for bad financial decisions and has to pay a higher rate.
Person B if this comes into effect: Nothing changes, good credit score helps keep Insurance costs down.
Source:
http://ccir-ccrra.org/en/init/Credit_scor/Credit_Scoring.asp
http://ccir-ccrra.org/en/init/Credit_scor/Stakeholder_Submissions_Issues_Paper_Credit_Scores_2011.pdf
This link is the 91 page stakeholder report.
The reason these things are passed is because no one has the money or expertise to contest it.
I will, in later posts when I have more time, be discussing the different regulations that have effected the policy holders in Ontario in many ways. However, I'd like to point out a new way which the Insurance Companies are going to be using to get even more money out of people.
Introducing: Credit score to be used by Insurance Companies:
Explanation:The Credit Scoring Working Group is reviewing and examining the issues and options around the use of credit scoring models in underwriting and other ways that insurers use data from credit rating agencies. The working group reports the results of its review to the CCIR, whose individual members may apply these as they consider appropriate.
What does this really mean: If one was to read the document that I am posting below one would find out that basically Insurance Companies are considering using credit ratings as an additional way to hike up the fees on their clients for Insurance coverage, however this time it's beyond ridiculous.
Person A: Great driving record but made a few bad financial decisions and therefore has a lower credit rating.
Person B: Has lot's of money, but isn't that great of a driver.
Person A if this comes into effect: Rate goes up to be punished for bad financial decisions and has to pay a higher rate.
Person B if this comes into effect: Nothing changes, good credit score helps keep Insurance costs down.
Source:
http://ccir-ccrra.org/en/init/Credit_scor/Credit_Scoring.asp
http://ccir-ccrra.org/en/init/Credit_scor/Stakeholder_Submissions_Issues_Paper_Credit_Scores_2011.pdf
This link is the 91 page stakeholder report.
The reason these things are passed is because no one has the money or expertise to contest it.
Mission Statement?
Hi,
I am starting this blog for one reason. That reason is that the Insurance Industry in Canada is completely, without a doubt, unfair.
Throughout the life of this blog I will be showing examples, answering questions, and talking about little known facts in the Insurance Industry that make life difficult for many people in Canada.
I will be focusing primarily on the Car Insurance Industry and the way the system that was created in order to protect drivers is in reality the major factor in applying day to day stress and losses to them.
I will be reviewing different Insurance Companies and ranking them. Giving tips on who to trust, or how to go about doing your own legal research so that you are protected from the different lies and misconceptions brought forth by your "concerned" Insurance adjusters and brokers.
I am starting this blog for one reason. That reason is that the Insurance Industry in Canada is completely, without a doubt, unfair.
Throughout the life of this blog I will be showing examples, answering questions, and talking about little known facts in the Insurance Industry that make life difficult for many people in Canada.
I will be focusing primarily on the Car Insurance Industry and the way the system that was created in order to protect drivers is in reality the major factor in applying day to day stress and losses to them.
I will be reviewing different Insurance Companies and ranking them. Giving tips on who to trust, or how to go about doing your own legal research so that you are protected from the different lies and misconceptions brought forth by your "concerned" Insurance adjusters and brokers.
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