Mays Tucker Insurance Blog

Mays Tucker Insurance Bloghttp://www.maystucker.com/blog/View Mays Tucker Insurance's Website Blogen-uspostmaster@www.maystucker.comInsurance Website Builder - www.insurancewebsitebuilder.comurn:uuid:4acf1269-5289-4a83-9f1e-7e52763974f0urn:uuid:23929761-6b2f-4867-bbc4-b0d9a3bd41bdNational Driver's Test!Greetings, If knowing the rules of the road is any indication of safe driving habits, then men are the safer drivers. That's according to the 7th Annual GMAC Insurance National Drivers Test. This year, men had a test score that was slightly higher th...Tue, 28 Jun 2011 10:29:56 -0500Greetings, If knowing the rules of the road is any indication of safe driving habits, then men are the safer drivers. That's according to the 7th Annual GMAC Insurance National Drivers Test. This year, men had a test score that was slightly higher than 80%. That is significantly higher than females, who averaged just above 74%. What is more telling is that 27.2% of the women who took the test, failed. Compare that to the 13.6% of men who failed the National Drivers Test and we get a real sense of who knows the rules of the road better when it comes to men vs. women. Take the test yourself! Visit http://www.nationaldriverstest.com/ Take the test and see how you size up when it comes to knowing the rules of the road. If you’re on Facebook, don’t forget to check out the National Drivers Test Facebook App where you can “challenge a friend” to take the test!urn:uuid:f9847345-bba8-415c-ab0d-a5829cd5048fDrivers and Insurance per the DMV! Helpful Hints: A vehicle must be insured with liability coverage when it is registered, and it must remain insured while registered, whether or not it is operated. If you do not have liability insurance on a registered motor vehicle, you must pay th...Wed, 06 Apr 2011 15:27:40 -0500 Helpful Hints: A vehicle must be insured with liability coverage when it is registered, and it must remain insured while registered, whether or not it is operated. If you do not have liability insurance on a registered motor vehicle, you must pay the Uninsured Motor Vehicle Fee. Penalties are severe for violation of this requirement. Insurance Requirements To purchase license plates or decals, you must certify that the vehicle is covered by the minimum insurance requirements or pay the uninsured motor vehicle fee. Insurance requirements also apply to antique motor vehicles. Your insurance carrier must be authorized to conduct business in Virginia. Virginia requires the following minimum coverage: • Bodily injury/death of one person $25,000 • Bodily injury/death of two or more persons $50,000 • Property damage $20,000 The $500 Uninsured Motor Vehicle (UMV) fee, which is paid to the Department of Motor Vehicles (DMV), does not provide any insurance; it only allows you to drive an uninsured vehicle at your own risk. It expires with your registration and must be paid at renewal. Note: If liability insurance coverage on a vehicle terminates or cancels during the registration period, either reinsure the vehicle, pay the uninsured motor vehicle fee, or surrender the license plates to DMV. Self-insurance or Surety Bonds are special options for owners of business vehicles. Details are available at any DMV office. Penalties Vehicle owners who are uninsured or have not paid the UMV fee will have their driving and vehicle registration privileges suspended. To be reinstated, they must pay a $500 statutory fee, file a Financial Responsibility Insurance Certificate (SR-22) with DMV for three years, and pay a reinstatement fee, if applicable. Verification of Insurance Coverage DMV monitors insurance coverage through our Insurance Verification Program. Insurance carriers provide DMV with electronic updates of insured information and vehicle description when they cancel, add and write new coverage for motor vehicles registered in Virginia. DMV verifies that motor vehicles are properly insured by comparing vehicle registration information on file at DMV with liability information on the owner and vehicle transmitted to DMV by the insurance carrier. If no insurance is found, DMV requires the motor vehicle owner to furnish the liability insurance information to DMV for verification. Additional Information For additional insurance information, refer to the Virginia Auto Insurance Consumer Guide or contact us. General Information As part of its role of administering motor vehicle laws, the Virginia Department of Motor Vehicles (DMV) monitors liability insurance for motor vehicles registered in the Commonwealth. To protect the interests of all Virginia motorists, DMV, in partnership with the Insurance Industry, administers an Insurance Verification Program that is designed to detect vehicle owners who are not in compliance with insurance requirements. Verification occurs whenever an owner first registers a motor vehicle in Virginia or when a motor vehicle owner or insurance company cancels liability insurance coverage for a vehicle. The State Corporation Commission (SCC) regulates Virginia's businesses and economic concerns balancing the interests of citizens, businesses, stockholders and consumers. The SCC works to assure that Virginians receive quality service from regulated public service businesses at reasonable prices. The SCC also assists consumers who have valid disputes with regulated companies. The SCC's Bureau of Insurance is involved in consumer protection through administration of state laws regarding insurance. For more consumer information see the Auto Insurance Consumers Guide. Additional Information Monitoring Methods Penalty Insurance Monitoring Methods The Department of Motor Vehicles (DMV) uses the following methods to monitor insurance of Virginia registered vehicles. • Electronic Motor Vehicle Liability Insurance Reporting is the cornerstone of all monitoring methods. The motor vehicle code §46.2-706.1 requires insurance companies authorized or licensed to do business in Virginia to furnish liability insurance information to DMV electronically. This information is required when insurance policies are canceled, new policies are written and when there are additions to existing polices for motor vehicles registered in Virginia. • Insurance monitoring also occurs through the Suspected Uninsured Accident. This process allows a driver, vehicle owner or a representative to voluntarily file an accident report (FR200) with DMV and as a part of the report, to indicate there is reason to believe the other vehicle involved in the accident was uninsured. A request for insurance information is sent by DMV to the other vehicle owner specified in the report. If the other vehicle owner fails to respond or is found to have no insurance, an order of suspension is issued to the owner. The vehicle owner or representative filing the accident report may request DMV to provide them with the insurance information obtained. • A third monitoring method, the Law Enforcement Notification is initiated when police officers require owners to provide insurance information to DMV. Drivers are issued a form (FR422A) requesting insurance information at roadside checks. DMV issues an order of suspension to vehicle owners who are found uninsured. In addition to the State Police, a total of 108 local law enforcement agencies participate with DMV in the Law Enforcement Notification process. • The Police Accident Reports (form FR300P) process is another method of monitoring insurance. It utilizes police crash reports to identify potentially uninsured individuals. The crash reports are reviewed to determine if a need exists to request insurance information. If it is determined a need exists, insurance information is requested from the owner. If the owner fails to respond to the request or if the owner does not have insurance, an order of suspension is issued to the owner. Penalty Every person applying for registration of a motor vehicle and declaring it to be an insured vehicle, faces stiff penalties if the motor vehicle is subsequently found to be uninsured. DMV suspends all driver's license and registration certificates and license plates issued to the owner of the motor vehicle. These items are suspended until the person pays a $500 statutory fee (collected by DMV and deposited into the Uninsured Motorist Fund, furnishes and maintains proof of financial responsibility (form SR-22) for three years and pays a reinstatement fee, if applicable. During the three-year period, insurance companies notify DMV if the insurance coverage is canceled (form SR-26). When three years have elapsed from the effective date of the suspension, DMV relieves the vehicle owner of the requirement of furnishing proof of financial responsibility. Insurance companies can file financial responsibility insurance certifications electronically (Financial Responsibility Insurance Filing Via Internet). We strongly encourage the electronic submissions of the certifications as this will update your customer's financial responsibility information directly on their DMV record. If you would like to sign up for this service see Application for Extranet Transaction Access. Please refer to the Auto Insurance Consumer's Guide located at <a href="http://www.dmvnow.com/" onmousedown="UntrustedLink.bootstrap($(this), "8ecef", event, bagof({}));" target="_blank" rel="nofollow">www.dmvnow.com</a> Regards, Will Mays urn:uuid:b1397e5e-577c-463a-9a9b-b77e7472a0d2Cheap way to get additional Liability Coverage! Dear Policyholders, Many of you have an automobile or homeowners policy (hopefully both) with Mays - Tucker! What you probably do not have is an Umbrella policy. Below is a brief description: " Coverage for losses above the limit of an underlyi...Wed, 06 Apr 2011 15:25:45 -0500 Dear Policyholders, Many of you have an automobile or homeowners policy (hopefully both) with Mays - Tucker! What you probably do not have is an Umbrella policy. Below is a brief description: " Coverage for losses above the limit of an underlying policy or policies such as automobile and homeowners insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of the underlying policies." The news outlets, locally and nationally, show accidents resulting in awards of upward of $1,000,000. This is not uncommon. Let's say you have a bodily injury per person limit of $500,000. The driver dies in an accident in which you are held legally liable and the passenger sustains life altering injuries. You can see right away where the umbrella could give you that extra layer of protection from unseen events. Maybe $1,500,000 would not be enough in this scenario! This coverage is not expensive and gives piece of mind! Thanks, Will urn:uuid:c9c1a3f9-2a3a-4d9a-8bf3-67429ec7c70aPatient Protection and Affordable Care Act  Patient Protection amd Affordable Care Act Brief Summary Below are the elements of the Patient Protection and Affordable Care Act that may be of most interest. This document is based on the Senate version of the health care reform legislati...Thu, 25 Mar 2010 13:38:58 -0500  Patient Protection amd Affordable Care Act Brief Summary Below are the elements of the Patient Protection and Affordable Care Act that may be of most interest. This document is based on the Senate version of the health care reform legislation as amended by the House reconciliation bill. There could be further changes and amendments to the reconciliation piece during Senate consideration, and there is a remote chance that the Senate would fail to pass the reconciliation package. Both scenarios would result in changes to the legislation and this summary. Thus, this is not a final document. Of particular note is that there is not a public option present in the legislation. Also absent is the Health Rating Authority Commission, which was the proposal to have a federal rating board. Individual Mandate All individuals will be required to have health insurance, with some exceptions, beginning in 2014. Those who do not have coverage will be required to pay a yearly financial penalty of the greater of $695 per person (up to a maximum of $2,085 per family), or 2.5% of household income, which will be phased-in from 2014-2016. Exceptions will be given for financial hardship and religious objections; and to American Indians; people who have been uninsured for less than three months; if the lowest cost health plan exceeds 8% of income; and if the individual has income below the poverty level ($10,830 for an individual and $22,050 for a family of four in 2009). Guaranteed Issue Through private market reforms (detailed below) all carriers will be required to have guaranteed issue and guaranteed renewal in order to accommodate the individual mandate beginning in 2014. American Health Benefit Exchanges States will create the American Health Benefits Exchanges where individuals can purchase insurance and separate exchanges for small employers to purchase insurance. These new marketplaces will provide consumers with information to enable them to choose among plans. Premium and cost-sharing subsidies will be available to make coverage more affordable. <ol> <li>Access to Exchanges will be limited to U.S. citizens and legal immigrants and subsidies will only be available to those without other coverage or whose share of the premium for coverage offered by an employer exceeds 9.8% of their income. Small businesses with up to 100 employees can purchase coverage through the Exchange. </li> <li>Although there will not be a public plan option in the Exchanges, the Office of Personnel Management, which administers the Federal Employees Health Benefit Program, will contract with private insurers to offer at least two multi-state plans in each Exchange, including at least one offered by a non-profit entity. In addition, funds will be made available to establish non-profit, member-run health insurance CO-OPs in each state. </li> <li>Plans in the Exchanges will be required to offer benefits that meet a minimum set of standards. Insurers will offer four levels of coverage that vary based on premiums, out-of-pocket costs, and benefits beyond the minimum required plus a catastrophic coverage plan. </li> <li>The four levels of coverage will be: </li> </ol> 1 o Bronze – minimum level of coverage, provides essential health benefits. Cover 60% of benefit costs of plans, with an out of pocket limit equal to the HSA current limit ($5,950 for individual and $11,900 for family). o Silver plan - provides the essential health benefits, covers 70% of the benefit costs of plan, with the HSA out-of-pocket limits. o Gold plan – provides the essential health benefits, covers 80% of the benefit costs of plan, with the HSA out-of-pocket limits. o Platinum plan – provides the essential health benefits, covers 90% of the benefit costs of plan, with the HSA out-of-pocket limits. •Premium subsidies will be provided to families with incomes between 100-400% of the poverty level (or $22,050 to $88,200 for a family of four in 2009) to help them purchase insurance through the Exchanges. These subsidies will be offered on a sliding scale basis and will limit the cost of the premium to between 2% of income for those between 100-133% of the poverty level to 9.8% of income for those between 300- 400% of the poverty level. •Cost-sharing subsidies will also be available to people with incomes between 100-200% of the poverty level to limit out-of-pocket spending. •Broker Role – HHS Secretary is required to "establish procedures under which a State may allow agents and brokers to enroll individuals" in Exchanges. •An Advisory Board must be set up by HHS and must include "individuals with experience in facilitating the enrollment in qualified health plans." •A "Navigators" Program must be set up by Exchanges to engage in education, marketing, and enrollment activities. Insurance agents and brokers are expressly included in the list of potential "Navigators" but they may not serve as a "Navigator" if they are paid in any way "directly or indirectly" in connection with enrollment in an Exchange-provided plan. Regulations will be forthcoming from HHS on this issue. Importantly, any Navigator must be "qualified, and licensed if appropriate." Employer Requirements There is no employer mandate but employers with more than 50 employees will be assessed a fee of $2000 per full-time employee (excluding the first 30 employees from the assessment) (excluding the first 30 employees from the assessment) if they do not offer coverage and if they have at least one employee who receives a premium credit through an Exchange. Employers that do offer coverage but have at least one employee who receives a premium credit through an Exchange are required to pay the lesser of $3,000 for each employee who receives a premium credit or $750 for each full-time employee. <ol> <li>Employers that offer coverage will be required to provide a free choice voucher to employees with incomes below 400% of the poverty level if their share of the premium cost is between 8-9.8% of income and who choose to enroll in a plan in an Exchange. Employers that offer a free choice voucher will not be subject to the above penalty. </li> <li>Large employers (more than 200 employees) that offer coverage will be required to automatically enroll employees into the employer’s lowest cost premium plan if the employee does not sign up for employer coverage or does not opt out of coverage. </li> <li>No employer may impose a waiting period that exceeds 90 days. </li> </ol> Private Insurance Mandates New insurance market regulations will prevent health insurers from denying coverage to people for any reason, including their health status, and from charging people more based on their health status and gender. These new rules will also require that all new health plans provide comprehensive coverage that 2 includes at least a minimum set of services, caps annual out-of-pocket spending, does not impose cost-sharing for preventive services, and does not impose annual or lifetime limits on coverage (existing individual and employer-sponsored plans do not have to meet the new benefit standards). <ol> <li>Health plan premiums will be allowed to vary based on age (by a 3 to 1 ratio), geographic area, tobacco use (by a 1.5 to 1 ratio), and the number of family members. </li> <li>Health insurers will be prohibited from imposing lifetime limits on coverage and will be prohibited from rescinding coverage, except in cases of fraud. </li> <li>Increases in health plan premiums will be subject to review before they can be implemented. </li> <li>Young adults will be allowed to remain on their parent’s health insurance up to age 26. </li> <li>States will be allowed to form health care choice compacts that enable insurers to sell policies in any state that participates in the compact under a single set of rules. </li> </ol> Merging of Individual and Small Group Markets Beginning in 2014, the legislation allows states the option of merging the individual and small group markets within the Exchanges. Expansion of Public Programs Medicaid will be expanded to all individuals under age 65 with incomes up to 133% of the federal poverty level ($14,404 for an individual and $29,327 for a family of four in 2009). This expansion will create a uniform minimum Medicaid eligibility threshold across states and will eliminate a current limitation of the program that prohibits most adults without dependent children from enrolling in the program today. Eligibility for Medicaid and the Children’s Health Insurance Program (CHIP) for children will continue at their current eligibility levels until 2019. People with incomes above 133% of the poverty level will obtain coverage through the newly created state health insurance Exchanges. <ol> <li>The federal government will provide 100% federal funding for the costs of those who become newly eligible for Medicaid for three years (2014-2016). In 2017 and 2018, states will receive an increase in the federal medical assistance percentage (FMAP) based on current state eligibility levels for adults, and then beginning in 2019, all states will receive the same FMAP increase. Different funding rules apply for Nebraska and certain states that are not eligible for the increased FMAP because they have already expanded Medicaid eligibility. </li> </ol> New Taxes and Fees <ol> <li>"Cadillac Tax"-- Imposes an 40% excise tax on insurers of employer sponsored health plans with aggregate values that exceed $10,200 for individual coverage and $27,500 for family coverage (these threshold values will be indexed to the consumer price index for urban consumers (CPI-U). This tax would apply to self-insured plans and sold in the group market, but not plans sold in the individual market. </li> <li>Non-Wage Medicare Tax- starting in 2013, households with incomes above $200,000 ($250,000 for married couples) will have a new, 3.8 percent tax applied to their income from interest, dividends, capital gains, and some profits from investments in partnerships and S corporations. </li> <li>0.9% Medicare Tax Increase- starting in 2013, households with incomes above $200,000 ($250,000 for married couples) will have a 0.9% increase to their Medicare taxes on their wages. </li> <li>Third party administrators and health insurers must pay a three-year aggregate industry fee to fund a reinsurance program that will total $12 billion in 2014, $8 billion in 2015, $5 billion in 2016. </li> <li>There is a fee on health insurers and self-insured plans of $2 per covered beneficiary to fund comparative research initiatives. </li> </ol> 3 <ol> <li>Health insurers must pay a new annual fee based on their market share. The fee will be assessed based on their net premiums written starting in 2014. The fee will total (across all health insurers) $8 billion in 2014, $11.3 billion in 2015, $11.3 billion in 2016, $13.9 billion in 2017, and $14.3 billion in 2018. After 2018 the fee will be indexed to growth based on premium growth for the preceding year. </li> <li>The pharmaceutical manufacturing sector must pay a new annual fee ($2.5 billion in 2011). </li> <li>The deduction for the subsidy for employers who maintain prescription drug plans for the Medicare part D eligible retirees is eliminated started in 2013. </li> </ol> HSA and FSA Changes <ol> <li>Only prescribed drugs would be permitted to be reimbursable through a health savings account. </li> <li>The tax on distributions from a health savings account that are not used for qualified medical expenses would be increase to 20% (from the current 10%) of the disbursed amount. </li> <li>The amount of contributions to FSA’s for medical expenses would be limited to $2,500 per year, adjusted for inflation. </li> </ol> Medical Loss Ratio (MLR) Require health plans to report the proportion of premium dollars spent on clinical services, quality, and other costs and provide rebates to consumers for the amount of the premium spent on clinical services and quality that is less than 85% for plans in the large group market and 80% for plans in the individual and small group markets. Requirement to report medical loss ratio effective plan year 2010, requirement to provide rebates effective January 1, 2011. Small Business Tax Credit Provides a two year tax credit to small businesses (less than 25 employees) with aver annual wages of less than $40,000 that purchase health insurance with the tax credit. <ol> <li>For tax years 2010 to 2013, the tax credit would be up to 35% of the employer’s contribution toward the employee’s health insurance premium if the employer contributes at least 50% of the total premium cost. </li> <li>For tax years 2014 and later, for eligible businesses that purchase through the Exchanges, the tax credit would be up to 50% of the employer’s contribution toward the employee’s premium if the employer contributes at least 50% of the employee’s total premium cost. </li> <li>The full credit will be available to employers with 10 or few employees and average annual wages of $25,000 and less, the credit phases out as firm size and wages increase. </li> </ol> Prevention/Wellness Programs <ol> <li>Establish the National Prevention, Health Promotion and Public Health Council to coordinate federal prevention, wellness, and public health activities. Develop a national strategy to improve the nation’s health. (Strategy due one year following enactment) </li> <li>Create a Prevention and Public Health Fund to expand and sustain funding for prevention and public health programs. (Initial appropriation in fiscal year 2010) </li> <li>Create task forces on Preventive Services and Community Preventive Services to develop, update, and disseminate evidenced-based recommendations on the use of clinical and community prevention services. (Effective upon enactment) </li> </ol> 4 5 <ol> <li>Establish a grant program to support the delivery of evidence-based and community based prevention and wellness services aimed at strengthening prevention activities, reducing chronic disease rates and addressing health disparities, especially in rural and frontier areas. </li> <li>Provide grants for up to five years to small employers that establish wellness programs. (Funds appropriated for five years beginning in fiscal year 2011) </li> <li>Provide technical assistance and other resources to evaluate employer-based wellness programs. Conduct a national worksite health policies and programs survey to assess employer-based health policies and programs. (Conduct study within two years following enactment) </li> <li>Permit employers to offer employees rewards—in the form of premium discounts, waivers of cost-sharing requirements, or benefits that would otherwise not be provided—of up to 30% of the cost of coverage for participating in a wellness program and meeting certain health-related standards. Employers must offer an alternative standard for individuals for whom it is unreasonably difficult or inadvisable to meet the standard. The reward limit may be increased to 50% of the cost of coverage if deemed appropriate. </li> </ol> CLASS Act Establishes a national, voluntary insurance program for purchasing community living assistance services and supports (CLASS program). Following a five-year vesting period, the program will provide individuals with functional limitations a cash benefit of not less than an average of $50 per day to purchase non-medical services and supports necessary to maintain community residence. The program is financed through voluntary payroll deductions: all working adults will be automatically enrolled in the program, unless they choose to opt-out. (Effective January 1, 2011) urn:uuid:364ed61f-ea14-4bcc-af9f-790d1e2c7629Vacant Home - Should I call my agent? Home Insurance Alert by Broderick Perkins It may be cheaper -- and safer -- to keep a home for sale occupied, especially if it doesn't sell soon enough. With swelling inventories of vacant homes on the market, more and more home sellers are learn...Fri, 27 Mar 2009 15:46:51 -0500 Home Insurance Alert by Broderick Perkins It may be cheaper -- and safer -- to keep a home for sale occupied, especially if it doesn't sell soon enough. With swelling inventories of vacant homes on the market, more and more home sellers are learning the hard way -- your homeowner's insurance policy can expire if the home is vacant for more than 30 days. The vacancy rate, the share of unoccupied homes for sale, also hit a record of 2.3 million, up nearly 3 percent from a year ago. Some of that higher vacancy rate is due to the estimated more than 1 million foreclosed and repossessed homes on the market right now, according to the Mortgage Brokers Association. Other vacant homes have been abandoned by those yet to reach foreclosure, but who are no longer able to make the payment. Insurers put a higher risk (and cost) on insuring vacant homes for the same reasons some owners are discovering -- theft, vandalism, fires and water damage are more likely to happen in an empty home. The damage is also likely to be worse because there's no one around to report it or stop it. "You also have a liability problem because the word goes out, 'Nobody lives there. Let's go play in that yard'," said Tully Lehman spokesman for the Insurance Information Network of California. Vandalism and theft brings an unsavory element and, well, there goes the neighborhood and the values of surrounding properties. Lehman says before your home is vacant, take a look at your policy and talk with your insurance agent for guidance. He also said vacant homeowners insurance is available to cover the property and liability. Coverage varies from state to state and policies vary from company to company and the policies can be costly. The typical policy has a 24-month term for vacant homes for sale or not, homes in the name of an estate, or homes under renovation. Comparison shop several insurers. You could get the best deal from your current insurer. You can raise the deductible to lower costs. Coverage may also be available through some state-run insurance plans, such as Fair Access to Insurance Requirements (FAIR) Plan. But you also have some options to help you avoid the cost of vacant home insurance. <ol> <li>Find a savvy real estate agent who has a proven track record of moving homes in a slow market, including the current slow market. </li> <li>Don't move out until you've sold the home. If you are one of a couple, consider staying behind, or living there occasionally until the home is sold. </li></ol> <ol> <li>Rent out the home. Not only will the home be lived in, the rent will help cover your carrying costs. You may still have to change your homeowners insurance policy to reflect the property's new rental status -- say to reduce your contents coverage -- but it'll be cheaper than vacant home insurance. Otherwise, hire a house-sitter or let someone you trust live there until it's sold. </li> <li>Make the home look lived in. No matter what you do, you still have to keep the home maintained by cleaning the yard and gutters, trimming trees, clearing the gutters, checking for leaks, shoveling the sidewalks and driveway, and winterizing or summer-izing as necessary. </li> <li>You also have to protect your property. Install and keep operable a monitored home security system and make sure the smoke detectors have fresh batteries. If your home has a sprinkler system, monitored central alarm for fire, smoke and theft and deadbolt locks, your home is safer and the features can lower the premium on your existing homeowner's insurance policy. </li> <li>Give the lived-in look some redundancy. Have an acquaintance bring in mail (Security experts say to stop mail and other deliveries when you are away). Ask a neighbor to park their car in the driveway. Install timers on lights and leave window coverings and some furniture in the home. </li> <li>Don't commit fraud. If leave your home vacant longer than your current policy permits before expiring due to vacancy, you could save a bundle. However, if the place is damaged or destroyed while vacant, after the policy should have expired due to vacancy, the insurer can challenge the claim. </li></ol> <table dir=ltr borderColor=#000000 cellSpacing=0 cellPadding=7 width=577 border=1> <tbody> <tr> <td vAlign=top height=34> Learn About Insuring Vacant HomesBy Groshan Fabiola </td></tr></tbody></table>urn:uuid:78d7441d-9dd9-49a1-9ca0-fef4e5ca1385Personal Umbrella - Do I need it?Claims Scenario #1 The 76-year old insured pulled forward out of her driveway to make a left turn into the path of a motorcycle approaching from her left, which was coming out of a curve.  The operator of the motorcycle applied his brakes and "...Fri, 27 Mar 2009 15:43:57 -0500Claims Scenario #1 The 76-year old insured pulled forward out of her driveway to make a left turn into the path of a motorcycle approaching from her left, which was coming out of a curve.  The operator of the motorcycle applied his brakes and "laid it down" but struck the quarter panel of the insured's vehicle. The insured was cited for traffic violations.   The motorcycle passenger (wife of the motorcycle operator), died at the scene.  She is survived by her husband, four children (ages 7 to 15), her parents, grandparents and several siblings.    The motorcycle operator suffered a fractured finger and abrasions and had a valid "bystander's claim" under state law.  The RLI Personal Umbrella policy contributed $640,000 in addition to the primary policies.     Claims Scenario #2 Shortly after sunset, Mrs. Insured was driving her minivan on a 2 lane roadway near an intersection when she hit a bicycle driven by a 14 year old girl (Girl #1) who suddenly crossed in front of her.  The accident occurred on the roadway adjacent to a park where football and soccer practice had just let out.    There were six witnesses to the accident, including the girl's best friend (Girl #2) who was riding with her.  Had they ridden to the next intersection, they could have crossed with a light and crosswalk, but because they were in a hurry, they decided to cross where they did.    Witnesses saw both girls initially start across the road, but then Girl #2 stopped.   Girl #1 kept going and was struck.  Girl #2 would not say why she stopped, but did say that she did not think Girl #1 looked before she crossed the road.   All witnesses agree that the insured van was traveling well within the 45 mph speed limit, and the insured maintains that she was going approximately 35 mph.  The witnesses also agree that the insured did not apply her brakes or take any evasive action nor did Girl #1 look both ways before crossing the road.    With the exception of one witness who is a close friend of Girl #1's family, the remaining four witnesses are consistent in their testimony that the insured probably did not have time to avoid the accident.    The insured driver is now 70 years old and had initially given a statement.  She later provided a doctor's note stating that forcing her to testify about the incident would be detrimental to her health and cause severe emotional distress.  Her initial statement confirms that she never saw Girl #1 until she hit her.  Girl #1 was hit by the van on the front passenger side corner, indicating that she was almost all the way across the lane when she was hit.    Girl #1 was not wearing a helmet and was thrown onto the hood, hit the windshield and was launched into the air, landing in a ditch where she was found unconscious.  She suffered a brain stem injury, head fracture, brain hemorrhage, & multiple compound fractures of the right leg.  She remained in the hospital for 90 days.  She was released with weakness of all four limbs and was in minimally responsive states, requiring maximum assistance with all activities of daily living.  She remains on a feeding tube and school records show that she attends a special education program.   The defense position was that the insured's failure to act was reasonable in that she had no time to see and react to the sudden movement of the bicyclist. A suit was filed and the final decision was that the insured should have had time to observe the plaintiff, Girl #1, and take evasive action.  The claim was ultimately closed with RLI paying $681,000.