Keep Your Insurance – Change Your Agent

The Agent might be the problem and not the Insurance Company……>

Kenya Insurance Review

What does the phrase Agent of Record mean?

Basically, when a policy holder wants to change insurance agents but keep the same insurance carrier, they must provide the new agent with an Agent of Record letter. This grants the new agent legal authority to represent the policy holder with the same insurance carrier.

Shocking, I know, but sometimes people just want to fire their insurance agent. It’s a sad realization that good insurance has become a rarity. We work to keep our clients happy and help them to succeed. We realize there are people who may like the insurance carrier who underwrites their policies just fine, but they want a new agent. Naming a new insurance agent as the Agent of Record grants them authority to manage your existing policies without switching insurance carriers altogether.

Why do I need an Agent of Record to change insurance agents?

Most insurance carriers…

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Are Road rage Claims payable by kenyan Insurance companies?

Are Road rage Claims payable by kenyan Insurance companies?
Road rage is a frightening phenomenon, where drivers get so angry behind the wheel that they drive dangerously or recklessly – occasionally resulting in an accident or even personal assault.
The Dictionary defines road rage as “any form of aggressive or anti-social behaviour that occurs when at least one party is involved in driving”. So if aggressive, or reckless driving results in an accident, and/or one of the drivers involved embarks in aggressive words or gestures, road rage immediately comes into play and must be reported to your insurance company.
Statistics on road rage are hard to come by. The Kenyan Insurance Act doesn’t quantify road rage incidents as it is notoriously hard to prove that one driver’s temper and/or driving style was the sole reason for an accident without ample witness evidence. That said, while recklessness, bad tempers and aggressive temperaments persist on the road, road rage in all forms is something drivers should be aware of and do their best to avoid.
Take note
If you are hit by a driver you feel was driving recklessly, gather as much evidence at the scene as possible – witness details, photos of the scene, notes on the weather conditions. You cannot rely on an insurance company simply taking your word for it: you need evidence.
Will my car insurance pay out?
Road rage is not classified as an accident by many Insurance companies in Kenya and hence not payable. In short, it may pay out for any damage done to third parties but most likely not cover any damage to the policy holder’s car.
Each incident is unique and will be investigated by the insurance provider before the claim is paid. If you’re the victim of a road rage incident, and the third party is known and insured, it’s likely that you will be able to claim off their insurance provider. If you’re the person dishing out the rage, then it’s likely that the provider would not pay out for damage to your vehicle but may pay out for any third-party damages. In addition, they may even take you to court in an attempt to seek damages from you.
The offence will also remain on your record and may result in higher premiums in the future.
It is recommended that calm should be maintained on the roads.

Article by Joseph Maina
B.Com Actuarial Science & AIIK

Keep Your Insurance – Change Your Agent

What does the phrase Agent of Record mean?

Basically, when a policy holder wants to change insurance agents but keep the same insurance carrier, they must provide the new agent with an Agent of Record letter. This grants the new agent legal authority to represent the policy holder with the same insurance carrier.

Shocking, I know, but sometimes people just want to fire their insurance agent. It’s a sad realization that good insurance has become a rarity. We work to keep our clients happy and help them to succeed. We realize there are people who may like the insurance carrier who underwrites their policies just fine, but they want a new agent. Naming a new insurance agent as the Agent of Record grants them authority to manage your existing policies without switching insurance carriers altogether.

Why do I need an Agent of Record to change insurance agents?

Most insurance carriers are legally bound not discuss a policy holder’s account with an insurance agent unless they are the agent of record. An Agent of Record letter gives the new agent rights to receive all communications on behalf of the policy holder.

The new agent is allowed to manage policies, quotes, certificates of insurance, endorsements and all other notices an insurance agent would normally handle for their client. The agent of record is also entitled to receive commissions from the insurance carrier who underwrites the insured’s policies.

Where do I get an Agent of Record letter?

First, you need to find a new insurance agent. The new agent will provide you with an either an ACORD Agent of Record letter or one they drafted themselves, and all you need to do is sign it.

Once the new agent receives the letter, they will turn around and give it to the insurance carrier who will then recognize that agent as the one who is now designated to represent you through that carrier. Once this happens, the insurance carrier will stop all communications with the old agent about your policies.

Real Life Example

Let’s say you own a flower shop and your business insurance policies are underwritten by Travelers Insurance. You got those policies a couple of years ago through your local independent insurance agent, Bob who works for Bob’s Insurance Agency.

The honeymoon is over with Bob now. He never really gave you good service, and he didn’t even call you to see if you were okay after you reported that hail damage claim to his assistant last year. Time to get a new agent!

This is where the Agent of Record letter comes in. Because you originally signed insurance applications with Bob’s agency, he still has the authority to manage your Travelers Insurance policies. But, if you like Travelers and you just want a new agent, all you need to do is sign an Agent of Record letter with a new insurance agent. Once you do this and Travelers accepts the letter, you’re the proud owner of a new insurance agent! Bye bye, Bob.

Summary

If you don’t like your insurance agent, but you like your insurance carrier, there’s no need to start all over from scratch. Find a new insurance agent you like, sign an Agent of Record letter giving them authority to represent you with your current insurance carrier and you’re done. Don’t you wish all things in life were that easy?

Our insurance agency wants to work with you to provide you with good insurance coverage. We want to do more than pair you with an agent you like, but an agent who helps you succeed. Let us help you find an insurance company who wants what is best for you. Start the conversation by requesting a free insurance quote at the top of the page and we will contact you. We look forward to getting to know you.

Keep Your Insurance – Change Your Agent

National Coalition for Self Employed Blog

What does the phrase Agent of Record mean?

Basically, when a policy holder wants to change insurance agents but keep the same insurance carrier, they must provide the new agent with an Agent of Record letter. This grants the new agent legal authority to represent the policy holder with the same insurance carrier.

Shocking, I know, but sometimes people just want to fire their insurance agent. It’s a sad realization that good insurance has become a rarity. We work to keep our clients happy and help them to succeed. We realize there are people who may like the insurance carrier who underwrites their policies just fine, but they want a new agent. Naming a new insurance agent as the Agent of Record grants them authority to manage your existing policies without switching insurance carriers altogether.

Why do I need an Agent of Record to change insurance agents?

Most insurance carriers…

View original post 499 more words

Temporary Health Insurance Plans

National Coalition for Self Employed Blog

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Find the Best Temporary Health Insurance Option

Temporary health insurance is a perfect solution for individuals needing insurance in the short term, whether they are uninsured, unemployed, self-employed or just need an affordable insurance product that fits their monthly budget. Compare plans and pricing, and find the best option.

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IF YOU HAVE ANY INSURANCE COVER: YOU NEED TO KNOW THE PRINCIPLES OF INSURANCE

The main objective of every insurance contract is to give financial security and protection to the insured from any future uncertainties. Insured must never ever try to misuse this safe financial cover.

Seeking profit opportunities by reporting false occurrences violates the terms and conditions of an insurance contract. This breaks trust, results in breaching of a contract and invites legal penalties.

An insurer must always investigate any doubtable insurance claims. It is also a duty of the insurer to accept and approve all genuine insurance claims made, as early as possible without any further delays and annoying hindrances.

Seven Principles of Insurance With Examples

The seven principles of insurance are :-

  1. Principle of Uberrimae fidei (Utmost Good Faith),
  2. Principle of Insurable Interest,
  3. Principle of Indemnity,
  4. Principle of Contribution,
  5. Principle of Subrogation,
  6. Principle of Loss Minimization, and
  7. Principle of Causa Proxima (Nearest Cause).
  1. Principle of Uberrimae fidei (Utmost Good Faith)

Principle of Uberrimae fidei (a Latin phrase), or in simple english words, the Principle of Utmost Good Faith, is a very basic and first primary principle of insurance. According to this principle, the insurance contract must be signed by both parties (i.e insurer and insured) in an absolute good faith or belief or trust.

The person getting insured must willingly disclose and surrender to the insurer his complete true information regarding the subject matter of insurance. The insurer’s liability gets void (i.e legally revoked or cancelled) if any facts, about the subject matter of insurance are either omitted, hidden, falsified or presented in a wrong manner by the insured.

The principle of Uberrimae fidei applies to all types of insurance contracts.

  1. Principle of Insurable Interest

The principle of insurable interest states that the person getting insured must have insurable interest in the object of insurance. A person has an insurable interest when the physical existence of the insured object gives him some gain but its non-existence will give him a loss. In simple words, the insured person must suffer some financial loss by the damage of the insured object.

For example :- The owner of a taxicab has insurable interest in the taxicab because he is getting income from it. But, if he sells it, he will not have an insurable interest left in that taxicab.

From above example, we can conclude that, ownership plays a very crucial role in evaluating insurable interest. Every person has an insurable interest in his own life. A merchant has insurable interest in his business of trading. Similarly, a creditor has insurable interest in his debtor.

  1. Principle of Indemnity

Indemnity means security, protection and compensation given against damage, loss or injury.

According to the principle of indemnity, an insurance contract is signed only for getting protection against unpredicted financial losses arising due to future uncertainties. Insurance contract is not made for making profit else its sole purpose is to give compensation in case of any damage or loss.

In an insurance contract, the amount of compensations paid is in proportion to the incurred losses. The amount of compensations is limited to the amount assured or the actual losses, whichever is less. The compensation must not be less or more than the actual damage. Compensation is not paid if the specified loss does not happen due to a particular reason during a specific time period. Thus, insurance is only for giving protection against losses and not for making profit.

However, in case of life insurance, the principle of indemnity does not apply because the value of human life cannot be measured in terms of money.

  1. Principle of Contribution

Principle of Contribution is a corollary of the principle of indemnity. It applies to all contracts of indemnity, if the insured has taken out more than one policy on the same subject matter. According to this principle, the insured can claim the compensation only to the extent of actual loss either from all insurers or from any one insurer. If one insurer pays full compensation then that insurer can claim proportionate claim from the other insurers.

For example :- Mr. Omolo insures his property worth KES 1,000,000 with two insurers “AIG Ltd.” for KES 900,000 and “APA Insurance Ltd.” for KES 100,000. Omolo’s actual property destroyed is worth KES 1,000,000, then Mr. Omolo can claim the full loss of KES 1,000,000 either from AIG Ltd. or APA Insurance Ltd., or he can claim KES 900,000 from AIG Ltd. and KES 100,000 from APA Insurance Ltd.

So, if the insured claims full amount of compensation from one insurer then he cannot claim the same compensation from other insurer and make a profit. Secondly, if one insurance company pays the full compensation then it can recover the proportionate contribution from the other insurance company.

  1. Principle of Subrogation

Subrogation means substituting one creditor for another.

Principle of Subrogation is an extension and another corollary of the principle of indemnity. It also applies to all contracts of indemnity.

According to the principle of subrogation, when the insured is compensated for the losses due to damage to his insured property, then the ownership right of such property shifts to the insurer.

This principle is applicable only when the damaged property has any value after the event causing the damage. The insurer can benefit out of subrogation rights only to the extent of the amount he has paid to the insured as compensation.

For example :- Mr. Mwangi insures his house for KES 1 million. The house is totally destroyed by the negligence of his neighbour Mr.Kamau. The insurance company shall settle the claim of Mr. Mwangi for KES 1 million. At the same time, it can file a law suit against Mr.Kamau for KES 1.2 million, the market value of the house. If insurance company wins the case and collects KES 1.2 million from Mr. Kamau, then the insurance company will retain KES 1 million (which it has already paid to Mr. Mwangi) plus other expenses such as court fees. The balance amount, if any will be given to Mr. Mwangi, the insured.

  1. Principle of Loss Minimization

According to the Principle of Loss Minimization, insured must always try his level best to minimize the loss of his insured property, in case of uncertain events like a fire outbreak or blast, etc. The insured must take all possible measures and necessary steps to control and reduce the losses in such a scenario. The insured must not neglect and behave irresponsibly during such events just because the property is insured. Hence it is a responsibility of the insured to protect his insured property and avoid further losses.

For example :- Assume, Mr. Mwangi’s house is set on fire due to an electric short-circuit. In this tragic scenario, Mr. Mwangi must try his level best to stop fire by all possible means, like first calling nearest fire department office, asking neighbours for emergency fire extinguishers, etc. He must not remain inactive and watch his house burning hoping, “Why should I worry? I’ve insured my house.”

  1. Principle of Causa Proxima (Nearest Cause)

Principle of Causa Proxima (a Latin phrase), or in simple english words, the Principle of Proximate (i.e Nearest) Cause, means when a loss is caused by more than one causes, the proximate or the nearest or the closest cause should be taken into consideration to decide the liability of the insurer.

The principle states that to find out whether the insurer is liable for the loss or not, the proximate (closest) and not the remote (farest) must be looked into.

For example :- A cargo ship’s base was punctured due to rats and so sea water entered and cargo was damaged. Here there are two causes for the damage of the cargo ship – (i) The cargo ship getting punctured beacuse of rats, and (ii) The sea water entering ship through puncture. The risk of sea water is insured but the first cause is not. The nearest cause of damage is sea water which is insured and therefore the insurer must pay the compensation.

However, in case of life insurance, the principle of Causa Proxima does not apply. Whatever may be the reason of death (whether a natural death or an unnatural death) the insurer is liable to pay the amount of insurance.

For more clarification email me or comment below

Success and failure in social health insurance in Sub-Saharan Africa: what lessons can be learnt?

Africa has the highest burden of disease in the world. However, in 2007 more than half of the 53 African countries spent less than $ 50 per person on health. Of the total health expenditure, 30% came from governments, 20% from donors, and 50% from private sources – of which 71% was paid by patients themselves, the so called out-of-pocket payments. Since health payments regularly take up a disproportional share of the household resources, out-of-pocket payments are an important barrier for seeking health in Sub-Saharan Africa. So, out-of-pocket payments create inequity in access to health care. A social health insurance can be a solution to improve access to health care. Kenya is the only country in Sub-Saharan Africa which successfully implemented a social health insurance at national level. Other countries, including Uganda and South Africa, aim to implement a national health insurance as well, but they seem to be unsuccessful. Apparently, there are country-specific conditions which influence to what extent a country is suitable for such healthcare reforms. So what does Kenya have that other countries do not? What determines the success of implementing a national health insurance?

The importance of health insurance

In Africa, about half of health care expenses are out-of-pocket payments. Health care costs are a major barrier in health seeking behaviour and lead to an unequal access to health care, disadvantaging the poor. Introducing a health insurance programme is one way to ensure the poor of access to health care facilities and protect them against catastrophic health payments. In the past 25 years, several countries in Sub-Saharan Africa introduced a form of Social Health Insurance (SHI). In the majority of the countries these were small projects, only covering a city or region. The major setback with SHI schemes in Africa is the limited number of enrolled people: 95% of the insurance schemes count less than 1 000 members. The small scale of an insurance scheme implies poor financial viability due to limited risk pooling, and danger of bankruptcy. Therefore, implementing a national health insurance – managed by professionals – may be the solution for African countries on their way to universal health coverage.The insurance scheme covers all primary health services, outpatient and inpatient services and medication. First evaluations show that the number of visits per cardholder to out-patient-departments has increased since its introduction. Uganda and South Africa show great interests in a large-scale insurance system, but both fail to carry out such a programme. Apparently, a national health insurance cannot be implemented just everywhere.

 

Country-specific features

There are several key differences between Kenya, Uganda and South Africa that may explain why Kenya successfully implemented a national health insurance scheme and Uganda and South Africa fail to do so.
First of all, Kenya was the first Sub Saharan country that became independent from colonial rulers and eventually installed a government that led to a stable political climate in the following years. Uganda’s post-colonial development, however, is shaped by Idi Amin’s military dictatorship (1971-1979) which destroyed much of the country’s health care infrastructure. When eventually democracy was initiated, health care reforms failed, causing a corrupt public health care system. In South Africa, the years of apartheid entrenched inequity into the provision and financing of health services, producing a lack of access to essential health services for the majority of the population. The post-independence stage is of major importance in creating a suitable environment in which governments are able to carry out strong social health reforms. Kenya evidently made more constructive progress in developing a suitable health care system than Uganda and South Africa.

Also, there are differences in how current health systems are organized and financed. In Kenya, the government is the main financer of health. But in Uganda, one quarter of all financial means comes from international donor organizations, and one third of health expenses is paid by out-of-pocket payments.

Moreover, an important share of health services in Uganda is managed by religious organizations. In South Africa, the government finances 40% of health care expenditure and 40% is financed through private health insurances. Countries in which health care is mainly funded and organized by private or external organizations are less likely to convert into a government controlled social health insurance.

Furthermore, the extent of the health insurance sector is an important predictor of a successful implementation. In Kenya there were only small-scale insurance programmes active, and in Uganda only 2% of health expenses are paid through insurance programmes. In contrast, in South Africa there are more than 120 private health insurance programmes. Efforts to replace these insurance programmes by a national health insurance caused major resistance by private insurance companies. Private companies fear to lose their share of the insurance market once a national system is installed.

Quality of care is another important factor. Although Uganda’s health expenditure is comparable to that of Kenya, Uganda’s health services are of lower quality and the distance to health clinics is bigger. Low quality and unequal distribution of health services play an important, discouraging role in the patients’ willingness to pay for any type of health insurance. Also, societal characteristics influence the success rate of a national health insurance. Since rich inhabitants will pay higher premiums than the poor and usually suffer from fewer diseases, the wealthy share of the population partly subsidizes the health care for the poor population. In order to maintain a social health insurance, a minimal level of solidarity is essential. In South Africa, income per capita is exceptionally unequal and solidarity across socioeconomic classes is limited. A lack of solidarity causes resistance against implementing a national health insurance.

In Kenya, the reforms of a national health insurance started with an election promise by one of the bigger political parties to abolish out-of-pocket payments. After being elected, this party put great efforts in developing the insurance scheme, implementing it before the end of the term. It shows that major national reforms call for strong political willingness.

Lessons learnt

Policy makers and politicians in Sub-Saharan Africa should move towards a comprehensive national health policy, and invest in the quality and number of health services, before developing national health insurance. Furthermore, government health expenditure should increase and the financing of health must become independent from external donors. Also, countries must overcome problems of unequal income distribution and lack of solidarity across classes, prior to implementing social reforms. And to intercept resistance, all stakeholders must be involved in the process of policy making, especially established insurance companies because they have indispensable local experience.

More research on the background of succeeding and failing of national health insurances must be done, starting with critically evaluating the Kenyan National Health Insurance Scheme. Rumour has it that the Kenyan health system has difficulties in raising sufficient funds to pay for all enrolled patients, and some say that the insurance scheme will shortly go bankrupt due to its own success. Nevertheless, important lessons learnt in Kenya can guide policymakers in Africa on their way to universal health coverage.