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	<title>Answers for InsuranceLibrary.comTerry A. McCarthy, CLU, ChFC - President - Insurance Associates Agency Inc.</title>
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		<title>Answer on Do Uber Drivers Need Special Car Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/do-uber-drivers-need-special-car-insurance#answer_25976</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 02 Feb 2015 11:55:23 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/do-uber-drivers-need-special-car-insurance#answer_25976</guid>
		<description><![CDATA[Uber is an interesting new concept and with it there are new questions.  Without reading your policy I can only give you a general answer but the personal auto policies I have read and studied have an exclusion related to the use of the auto to carry passengers for a fee without an endorsement modifying the limitation.  I snagged this particular exclusion language for you from the ISO Personal Auto Policy (a common base for auto insurers to use in creating coverage):  For that &quot;insured&#039;s&quot; liability arising out of ownership or operation of a vehicle while it is being used as a public or livery conveyance.  Source:  ISO Personal Auto Policy PP 00 01 01 05.  There might be newer versions but this has been a longstanding limitation in the personal auto policy.]]></description>
		<content:encoded><![CDATA[Uber is an interesting new concept and with it there are new questions.  Without reading your policy I can only give you a general answer but the personal auto policies I have read and studied have an exclusion related to the use of the auto to carry passengers for a fee without an endorsement modifying the limitation.  I snagged this particular exclusion language for you from the ISO Personal Auto Policy (a common base for auto insurers to use in creating coverage):  For that "insured's" liability arising out of ownership or operation of a vehicle while it is being used as a public or livery conveyance.  Source:  ISO Personal Auto Policy PP 00 01 01 05.  There might be newer versions but this has been a longstanding limitation in the personal auto policy.]]></content:encoded>
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		<title>Answer on Why should I buy insurance from an agent rather than directly from the insurance company? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/buy-insurance-agent-rather-directly-insurance-company#answer_26051</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 09 Feb 2015 04:18:14 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/buy-insurance-agent-rather-directly-insurance-company#answer_26051</guid>
		<description><![CDATA[When you buy from a company you&#039;ll get acceptable advice, I have little doubt.  What you won&#039;t likely get is advice from someone who knows where you live on a personal basis.  You&#039;ll also probably never get to speak to the same person twice because service by the company isn&#039;t assigned to one person but a phone boiler room full of inbound call clerks.  You&#039;re not likely to get advice that is based upon actual experience but is learned from the sterile depictions in a text book.  In a nutshell, it is hard to make a call center accountable when something goes wrong with your coverage.  On the other hand, I learn to help you avoid problems when I also get to experience the problems our customers encounter.  In effect you get the collective experience of 1000&#039;s of my customers.  Plus, no phone clerk has the incentive I have to help you get insurance right!  We&#039;re certainly not perfect but an agent might be the best thing that comes with a policy.  By the way, the Ohio Dept of Insurance has just come out publicly with a recommendation to buy insurance from an agent.  I happen to agree.]]></description>
		<content:encoded><![CDATA[When you buy from a company you'll get acceptable advice, I have little doubt.  What you won't likely get is advice from someone who knows where you live on a personal basis.  You'll also probably never get to speak to the same person twice because service by the company isn't assigned to one person but a phone boiler room full of inbound call clerks.  You're not likely to get advice that is based upon actual experience but is learned from the sterile depictions in a text book.  In a nutshell, it is hard to make a call center accountable when something goes wrong with your coverage.  On the other hand, I learn to help you avoid problems when I also get to experience the problems our customers encounter.  In effect you get the collective experience of 1000's of my customers.  Plus, no phone clerk has the incentive I have to help you get insurance right!  We're certainly not perfect but an agent might be the best thing that comes with a policy.  By the way, the Ohio Dept of Insurance has just come out publicly with a recommendation to buy insurance from an agent.  I happen to agree.]]></content:encoded>
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		<title>Answer on How Far Back Does Auto Insurance Look At Driving Record? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/how-far-back-does-auto-insurance-look-at-driving-record#answer_26054</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 09 Feb 2015 04:53:51 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/how-far-back-does-auto-insurance-look-at-driving-record#answer_26054</guid>
		<description><![CDATA[We represent carriers who look back 35 months, others 36 months, some out to 60 months, and a few out to 84 months.  Some types of violations are of interest to carriers who may only ordinarily look back 35 or 36 months.  Major cites like a DWI, reckless operation or similar violations will earn you a minimum five year experience period.  Some states like Michigan use 2 years for a minor violation and 3 yrs on an accident to match the State&#039;s driver point assessment schedule.  Check with your state driving authority for law or permissible practice in your state.]]></description>
		<content:encoded><![CDATA[We represent carriers who look back 35 months, others 36 months, some out to 60 months, and a few out to 84 months.  Some types of violations are of interest to carriers who may only ordinarily look back 35 or 36 months.  Major cites like a DWI, reckless operation or similar violations will earn you a minimum five year experience period.  Some states like Michigan use 2 years for a minor violation and 3 yrs on an accident to match the State's driver point assessment schedule.  Check with your state driving authority for law or permissible practice in your state.]]></content:encoded>
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		<title>Answer on Why Am I Being Charged For Dwelling Extension Insurance, I Have No Other Buildings Other Than My House? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/charged-dwelling-extension-insurance-no-buildings-house#answer_26053</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 09 Feb 2015 04:37:38 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/charged-dwelling-extension-insurance-no-buildings-house#answer_26053</guid>
		<description><![CDATA[Extensions of coverage are extended from limits built into the package of homeowner coverages.   If you are referring to coverage &quot;B&quot; - other structures, this coverage is built in based on an antiquated coverage model where there was often a separate structure.  Today, a separate structure may include utility sheds, decks, light poles and fences since garages are often attached.  If you have none of these ask your carrier or agent if they can add this coverage to coverage &quot;A&quot; - Dwelling.  I know of at least one carrier who has done this. Others may allow you to use the limit to protect against under-insurance after a loss.]]></description>
		<content:encoded><![CDATA[Extensions of coverage are extended from limits built into the package of homeowner coverages.   If you are referring to coverage "B" - other structures, this coverage is built in based on an antiquated coverage model where there was often a separate structure.  Today, a separate structure may include utility sheds, decks, light poles and fences since garages are often attached.  If you have none of these ask your carrier or agent if they can add this coverage to coverage "A" - Dwelling.  I know of at least one carrier who has done this. Others may allow you to use the limit to protect against under-insurance after a loss.]]></content:encoded>
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		<title>Answer on Does my insurance cover an uninsured motorist driving my car? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/insurance-cover-uninsured-motorist-driving-car#answer_26052</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 09 Feb 2015 04:28:01 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/insurance-cover-uninsured-motorist-driving-car#answer_26052</guid>
		<description><![CDATA[When a licensed driver operates the insured car you own you are insuring the damage or injuries they cause in most places in this country.  Insurance follows the car in Ohio.  The driver has the financial responsibility for the injuries or damage in Ohio too if the car is not insured.  The unfortunate answer is that permissive use by non-rated drivers is something insurance companies hate paying for and would love to avoid.  It is something to ponder before loaning out your car because if it happens to you you won&#039;t be happy having the loss tagged to your record.  I suggest you check with an agent in your state of domicile for the most accurate answer.]]></description>
		<content:encoded><![CDATA[When a licensed driver operates the insured car you own you are insuring the damage or injuries they cause in most places in this country.  Insurance follows the car in Ohio.  The driver has the financial responsibility for the injuries or damage in Ohio too if the car is not insured.  The unfortunate answer is that permissive use by non-rated drivers is something insurance companies hate paying for and would love to avoid.  It is something to ponder before loaning out your car because if it happens to you you won't be happy having the loss tagged to your record.  I suggest you check with an agent in your state of domicile for the most accurate answer.]]></content:encoded>
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		<title>Answer on What Are Special Limits On My Homeowner’s Policy? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/special-limits-homeowners-policy#answer_26050</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 09 Feb 2015 04:01:32 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/special-limits-homeowners-policy#answer_26050</guid>
		<description><![CDATA[When insurance carriers develop their policies for distribution they consider the types of losses and the types of property that they are including.  Some property has a higher susceptibility to loss.  Some property is far more likely to be lost because of its nature or character.  Money is an example of property with a special limitation.  Jewelry has special limitations as another example.  When carriers write policies these special limits reflect a places where you may be able to buy back coverage to increase the limit.  Keep this idea in mind when you review your needs.  Homeowner insurance policies are based upon assumptions made about the needs of all homeowners and the understandings carriers have about the types of property and losses they are likely to incur.  All policies should be thoroughly reviewed to make sure they match your needs and I especially point to terms of coverage, perils, exclusions. and limitations.  So should you.  Tailor your coverage as you might your suit of clothes.  It will fit better.]]></description>
		<content:encoded><![CDATA[When insurance carriers develop their policies for distribution they consider the types of losses and the types of property that they are including.  Some property has a higher susceptibility to loss.  Some property is far more likely to be lost because of its nature or character.  Money is an example of property with a special limitation.  Jewelry has special limitations as another example.  When carriers write policies these special limits reflect a places where you may be able to buy back coverage to increase the limit.  Keep this idea in mind when you review your needs.  Homeowner insurance policies are based upon assumptions made about the needs of all homeowners and the understandings carriers have about the types of property and losses they are likely to incur.  All policies should be thoroughly reviewed to make sure they match your needs and I especially point to terms of coverage, perils, exclusions. and limitations.  So should you.  Tailor your coverage as you might your suit of clothes.  It will fit better.]]></content:encoded>
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		<title>Answer on Аre the rates from agents and insurance companies the same or different? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/%d0%b0re-rates-agents-insurance-companies-different#answer_26049</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 09 Feb 2015 03:43:59 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/%d0%b0re-rates-agents-insurance-companies-different#answer_26049</guid>
		<description><![CDATA[I am aware of carriers that use different companies in their company group to offer different rates for clients that are not necessarily available to the agency distribution channel.  The different distribution develop rate experience that is independent from the other and may rise or fall independently so that rates for one is higher than another.  Carriers using multi-channel distribution systems where they write business directly are probably following this model if they also have an agency channel.  There are some large carriers doing this and you&#039;d recognize them if I were to blab.  I don&#039;t hate them enough to out them.]]></description>
		<content:encoded><![CDATA[I am aware of carriers that use different companies in their company group to offer different rates for clients that are not necessarily available to the agency distribution channel.  The different distribution develop rate experience that is independent from the other and may rise or fall independently so that rates for one is higher than another.  Carriers using multi-channel distribution systems where they write business directly are probably following this model if they also have an agency channel.  There are some large carriers doing this and you'd recognize them if I were to blab.  I don't hate them enough to out them.]]></content:encoded>
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		<title>Answer on What Does Third Party Motorcycle Insurance Cover? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/what-does-third-party-motorcycle-insurance-cover#answer_26048</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 09 Feb 2015 03:34:01 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/what-does-third-party-motorcycle-insurance-cover#answer_26048</guid>
		<description><![CDATA[Third party is referring to the person you injure if you were to be found negligent after an accident occurs.  This is most commonly referred to as &quot;liability&quot; insurance on your policy and is expressed as &quot;bodily injury &#038; property damage&quot; on your insurance declaration page under most circumstances.  It may be abbreviated as &quot;BI-PD&quot; as a form of insurance shorthand.  The limits may be expressed as a single limit for the &quot;BI-PD&quot; or as split limits shown as &quot;BI&quot; per person and per occurrence and &quot;PD&quot; per occurrence.  Good luck.]]></description>
		<content:encoded><![CDATA[Third party is referring to the person you injure if you were to be found negligent after an accident occurs.  This is most commonly referred to as "liability" insurance on your policy and is expressed as "bodily injury &amp; property damage" on your insurance declaration page under most circumstances.  It may be abbreviated as "BI-PD" as a form of insurance shorthand.  The limits may be expressed as a single limit for the "BI-PD" or as split limits shown as "BI" per person and per occurrence and "PD" per occurrence.  Good luck.]]></content:encoded>
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		<title>Answer on Can Auto Insurance Be Transferred? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/can-auto-insurance-be-transferred#answer_25979</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 02 Feb 2015 12:53:48 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/can-auto-insurance-be-transferred#answer_25979</guid>
		<description><![CDATA[Generally, an insurance policy cannot be transferred or assigned.  Every personal auto policy I can remember reading prohibits assignment of the policy without the written consent of the insurance carrier.  That makes sense because the carrier has a right to choose their customers and since it is their money providing the coverage, they have a right to consider any change of risk.  As a general rule it makes more sense for a new policy to be written because even if the carrier consents to the change the new insured inherits the record of that policy including all the claims and payment history.  If the coverage is being transferred between a spouse to another spouse after a death, the companies are not in the habit of denying the request to change the first named insured.  Otherwise, per the ISO Personal Auto Policy, &quot;Assignment of this policy will not be valid unless we give our written consent.&quot;  The answer is no but there is a pathway to a &quot;yes&quot; if the carrier consents in writing.]]></description>
		<content:encoded><![CDATA[Generally, an insurance policy cannot be transferred or assigned.  Every personal auto policy I can remember reading prohibits assignment of the policy without the written consent of the insurance carrier.  That makes sense because the carrier has a right to choose their customers and since it is their money providing the coverage, they have a right to consider any change of risk.  As a general rule it makes more sense for a new policy to be written because even if the carrier consents to the change the new insured inherits the record of that policy including all the claims and payment history.  If the coverage is being transferred between a spouse to another spouse after a death, the companies are not in the habit of denying the request to change the first named insured.  Otherwise, per the ISO Personal Auto Policy, "Assignment of this policy will not be valid unless we give our written consent."  The answer is no but there is a pathway to a "yes" if the carrier consents in writing.]]></content:encoded>
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		<title>Answer on Does an allowing an unlicensed driver ticket effect insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/allowing-unlicensed-driver-ticket-effect-insurance#answer_25972</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 20:02:45 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/allowing-unlicensed-driver-ticket-effect-insurance#answer_25972</guid>
		<description><![CDATA[Every company we represent has a slightly different interpretation of the violations that appear on a drivers abstract of record.  Having no insurance and being cited for the violation will impact your insurance.  Allowing an unlicensed driver to drive is likely to result in the same outcome. I say that in general because it reflects upon your judgment and in both instances, the judgment exhibited as a driver and responsible sponsor of a &quot;prospective&quot; driver are now in question.]]></description>
		<content:encoded><![CDATA[Every company we represent has a slightly different interpretation of the violations that appear on a drivers abstract of record.  Having no insurance and being cited for the violation will impact your insurance.  Allowing an unlicensed driver to drive is likely to result in the same outcome. I say that in general because it reflects upon your judgment and in both instances, the judgment exhibited as a driver and responsible sponsor of a "prospective" driver are now in question.]]></content:encoded>
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		<title>Answer on Is An Index Annuity Fixed Or Variable? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/annuities/is-an-index-annuity-fixed-or-variable#answer_25971</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 19:59:21 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/annuities/is-an-index-annuity-fixed-or-variable#answer_25971</guid>
		<description><![CDATA[An indexed annuity was initially a method to make the market participation of a variable annuity available to the fixed and guaranteed marketplace.  The appropriate name for a &quot;index annuity&quot; is an Equity Indexed Annuities (EIA).  The idea of a variable indexed annuity is unusual but Allianz actually is offering a product with the name &quot;Index Advantage Variable Annuity&quot;.  According to the Securities and Exchange Commission, there are three types of annuities.  There are fixed, indexed or variable annuities.  The vast bulk of indexed annuities are not registered with the SEC and are therefore considered &quot;fixed&quot;.  Without more information to help you&#039;ll have to accept that an indexed annuity is probably a fixed product but some carriers are creating variable indexed annuities.]]></description>
		<content:encoded><![CDATA[An indexed annuity was initially a method to make the market participation of a variable annuity available to the fixed and guaranteed marketplace.  The appropriate name for a "index annuity" is an Equity Indexed Annuities (EIA).  The idea of a variable indexed annuity is unusual but Allianz actually is offering a product with the name "Index Advantage Variable Annuity".  According to the Securities and Exchange Commission, there are three types of annuities.  There are fixed, indexed or variable annuities.  The vast bulk of indexed annuities are not registered with the SEC and are therefore considered "fixed".  Without more information to help you'll have to accept that an indexed annuity is probably a fixed product but some carriers are creating variable indexed annuities.]]></content:encoded>
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		<title>Answer on What Are The Rules Of A Roth IRA? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/retirement-plans/what-are-the-rules-of-a-roth-ira#answer_25967</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 19:13:08 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/retirement-plans/what-are-the-rules-of-a-roth-ira#answer_25967</guid>
		<description><![CDATA[There are several rules that determine your eligibility to open a Roth IRA.  

1)  You must first have an income.  Did you have earned income in the current tax year?
2)  If you earned income, did your income exceed the limits set by the federal government?  This income limit changes every year and is depends on your marital status and tax filing status to determine the maximum income.  You qualify for a Roth IRA based upon your Modified Adjusted Gross Income (MAGI).  
3)  You cannot contribute more into a Roth IRA than you earned in income.  For example, if you earned $5,000 for 2014, that is your maximum contribution.
4)  The contribution limit in 2014 was $5,500 maximum.
5)  There is no maximum age where you are limited or prohibited from making a contribution to a Roth IRA.
6)  You are not required to take a mandatory distribution at age 70.5 like qualified IRA&#039;s.
7)  You can contribute to a Roth IRA even if you participate in a retirement plan at work.

Depending on circumstances there may be other rules but this gives you a few ideas.]]></description>
		<content:encoded><![CDATA[There are several rules that determine your eligibility to open a Roth IRA.  

1)  You must first have an income.  Did you have earned income in the current tax year?
2)  If you earned income, did your income exceed the limits set by the federal government?  This income limit changes every year and is depends on your marital status and tax filing status to determine the maximum income.  You qualify for a Roth IRA based upon your Modified Adjusted Gross Income (MAGI).  
3)  You cannot contribute more into a Roth IRA than you earned in income.  For example, if you earned $5,000 for 2014, that is your maximum contribution.
4)  The contribution limit in 2014 was $5,500 maximum.
5)  There is no maximum age where you are limited or prohibited from making a contribution to a Roth IRA.
6)  You are not required to take a mandatory distribution at age 70.5 like qualified IRA's.
7)  You can contribute to a Roth IRA even if you participate in a retirement plan at work.

Depending on circumstances there may be other rules but this gives you a few ideas.]]></content:encoded>
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		<title>Answer on I am uninsured and was hit by an insured driver. Should I contact their insurance or would I get in trouble even if they&#8217;re at-fault? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/uninsured-hit-insured-driver-contact-insurance-get-trouble-even-theyre-fault#answer_25952</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 01:48:43 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/uninsured-hit-insured-driver-contact-insurance-get-trouble-even-theyre-fault#answer_25952</guid>
		<description><![CDATA[There is no guarantee that the absence of insurance will not come back as an issue.  However, if you are in a tort law state you are entitled to be made whole for your loss regardless of your insurance status. In most instances your insurance shouldn&#039;t come up if the other driver is not contesting the facts.]]></description>
		<content:encoded><![CDATA[There is no guarantee that the absence of insurance will not come back as an issue.  However, if you are in a tort law state you are entitled to be made whole for your loss regardless of your insurance status. In most instances your insurance shouldn't come up if the other driver is not contesting the facts.]]></content:encoded>
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		<title>Answer on Should Roommates Get Separate Renters Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/renters-insurance/should-roommates-get-separate-renters-insurance#answer_25951</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 01:42:44 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/renters-insurance/should-roommates-get-separate-renters-insurance#answer_25951</guid>
		<description><![CDATA[Roommates should have separate tenant insurance policies.  There is no &quot;insurable interest&quot; in the property of the other on which to base a legal basis to pay a claim.  Moreover, liability of the one without insurance will be uninsured and there are no legal means available to a policyholder to assume liability or transfer rights under a policy.]]></description>
		<content:encoded><![CDATA[Roommates should have separate tenant insurance policies.  There is no "insurable interest" in the property of the other on which to base a legal basis to pay a claim.  Moreover, liability of the one without insurance will be uninsured and there are no legal means available to a policyholder to assume liability or transfer rights under a policy.]]></content:encoded>
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		<title>Answer on Does Car Insurance Have To Be In Your Name? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/does-car-insurance-have-to-be-in-your-name#answer_25950</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 01:37:09 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/does-car-insurance-have-to-be-in-your-name#answer_25950</guid>
		<description><![CDATA[Generally speaking, the answer is NO. You can still meet the financial responsibility that insurance is designed to provide by being a listed driver in a household. If you are in a domestic relationship and not married, you should probably have two names listed as first named insurers on the dec page of the policy.  Laws are variable on your protection status.  If you have an insurable interest due to owning a vehicle in the households, you may need to be listed to satisfy a lender.  If you are not a named insured and not a legally recognized domestic partner, you may not have protection for every aspect of coverage so in the end it makes sense to be listed on the declaration page.  This is less important for children of the insured living in the household due the defition of &quot;insured&quot; in the policy&#039;s.  All of the latter should be confirmed by a licensed agent in your state of residences.]]></description>
		<content:encoded><![CDATA[Generally speaking, the answer is NO. You can still meet the financial responsibility that insurance is designed to provide by being a listed driver in a household. If you are in a domestic relationship and not married, you should probably have two names listed as first named insurers on the dec page of the policy.  Laws are variable on your protection status.  If you have an insurable interest due to owning a vehicle in the households, you may need to be listed to satisfy a lender.  If you are not a named insured and not a legally recognized domestic partner, you may not have protection for every aspect of coverage so in the end it makes sense to be listed on the declaration page.  This is less important for children of the insured living in the household due the defition of "insured" in the policy's.  All of the latter should be confirmed by a licensed agent in your state of residences.]]></content:encoded>
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		<title>Answer on Can A Term Life Insurance Policy Have A Cash Value? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/can-a-term-life-insurance-policy-have-a-cash-value#answer_25949</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 01:19:34 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/can-a-term-life-insurance-policy-have-a-cash-value#answer_25949</guid>
		<description><![CDATA[Term insurance can build a &quot;terminal reserve&quot; and it is a cash value but it is not available to the policy owner as cash.  Return of premium features aside, term insurance doesn&#039;t otherwise generate &quot;cash value.&quot;  The reason a &quot;terminal reserve&quot; develops is that in early years of the policy life the premium is in excess of the true risk charge and the policy banks the excess premium for later years when the premium collected is less than needed to pay the risk cost.  Annual Renewable Term (ART) was priced for each year.  20 year level term averages the 20 years of premium charges into an average annual premium (level premium).  The averaging of premium is why a terminal reserve develops.]]></description>
		<content:encoded><![CDATA[Term insurance can build a "terminal reserve" and it is a cash value but it is not available to the policy owner as cash.  Return of premium features aside, term insurance doesn't otherwise generate "cash value."  The reason a "terminal reserve" develops is that in early years of the policy life the premium is in excess of the true risk charge and the policy banks the excess premium for later years when the premium collected is less than needed to pay the risk cost.  Annual Renewable Term (ART) was priced for each year.  20 year level term averages the 20 years of premium charges into an average annual premium (level premium).  The averaging of premium is why a terminal reserve develops.]]></content:encoded>
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		<title>Answer on When is a Life Insurance Policy regarded as &#8220;in force&#8221;? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/life-insurance-policy-regarded-force#answer_28059</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 01 Feb 2016 18:01:37 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/life-insurance-policy-regarded-force#answer_28059</guid>
		<description><![CDATA[As tragic as the circumstances, I suspect that the answer that will be sustained will be the one that declares the policy was actually in force at the actual time the premium was received. Most policies contain language that says something similar to: &quot;in consideration of the premiums paid...&quot;. Premium is the inducement for the carrier to provide the protection and enter into the contractual agreement to provide coverage. We almost always encourage our life insurance applicants to send premium with an application to invoke any temporary insurance agreements (provisions for obtaining coverage while the application is considered for issuance). When the carrier accepts the application, and there are no counter offers or amendments, the premium payment causes coverage to become effective in most instances. I explain to my customers it is better to be insured while deciding than to take a chance, however small, that conditions will change during the underwriting process or that they may pass unexpectedly while waiting.

Nevertheless, you may indeed find legal advice helpful and I am certainly not giving legal advice. Insurance companies are very careful and they act and behave in certain ways because of the experience they have had defending their written contracts. Insurance laws are also under constant review in courts so I suspect you might find legal advice useful. Sorry for your circumstances and good luck with your pursuit of the best possible answer for you.]]></description>
		<content:encoded><![CDATA[As tragic as the circumstances, I suspect that the answer that will be sustained will be the one that declares the policy was actually in force at the actual time the premium was received. Most policies contain language that says something similar to: "in consideration of the premiums paid...". Premium is the inducement for the carrier to provide the protection and enter into the contractual agreement to provide coverage. We almost always encourage our life insurance applicants to send premium with an application to invoke any temporary insurance agreements (provisions for obtaining coverage while the application is considered for issuance). When the carrier accepts the application, and there are no counter offers or amendments, the premium payment causes coverage to become effective in most instances. I explain to my customers it is better to be insured while deciding than to take a chance, however small, that conditions will change during the underwriting process or that they may pass unexpectedly while waiting.

Nevertheless, you may indeed find legal advice helpful and I am certainly not giving legal advice. Insurance companies are very careful and they act and behave in certain ways because of the experience they have had defending their written contracts. Insurance laws are also under constant review in courts so I suspect you might find legal advice useful. Sorry for your circumstances and good luck with your pursuit of the best possible answer for you.]]></content:encoded>
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		<title>Answer on How Does A Single Premium Deferred Annuity Work? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/annuities/how-does-a-single-premium-deferred-annuity-work#answer_28058</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 01 Feb 2016 17:47:38 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/annuities/how-does-a-single-premium-deferred-annuity-work#answer_28058</guid>
		<description><![CDATA[The answer lies within your question. Annuities are, by their construction, methods of accumulating assets, and methods of distributing assets. It is that simple. A single premium annuity is where no stream of regular payments is contemplated. In other words, you create your accumulation in the annuity with a single payment.

The &quot;deferred&quot; part explains that the annuity will have a payout at a later time. So, a single premium deferred annuity is an annuity that expects only one large lump payment and that time will pass before the funds will be distributed. The time that passes could be a year or fifty but the payout will be later.]]></description>
		<content:encoded><![CDATA[The answer lies within your question. Annuities are, by their construction, methods of accumulating assets, and methods of distributing assets. It is that simple. A single premium annuity is where no stream of regular payments is contemplated. In other words, you create your accumulation in the annuity with a single payment.

The "deferred" part explains that the annuity will have a payout at a later time. So, a single premium deferred annuity is an annuity that expects only one large lump payment and that time will pass before the funds will be distributed. The time that passes could be a year or fifty but the payout will be later.]]></content:encoded>
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		<title>Answer on Can A Fixed Annuity Be An IRA? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/annuities/can-a-fixed-annuity-be-an-ira#answer_28057</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 01 Feb 2016 17:39:23 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/annuities/can-a-fixed-annuity-be-an-ira#answer_28057</guid>
		<description><![CDATA[Most IRA&#039;s are fixed annuities but not all fixed annuities are IRA&#039;s. All that this means is that a fixed annuity can be a fixed annuity. A fixed annuity as an IRA is not subject to the direct effect of market risks because the account assets are not held in separate accounts and then  invested in marketable securities. Instead, an IRA is invested in high quality instruments by the carrier and the carrier assumes the risk to the IRA capital and to the rate of interest promised to you. The IRA pays interest at fixed rates. 

A variation of this arrangement is an IRA that is coupled with market investments that have more upside potential for gain without becoming variable products. These are called &quot;fixed index annuities&quot; (FIA) that are based upon one or another of the market indexes and one of several interest and gain crediting methods. The caveat is that the IRA is guaranteed by the underwriting company (usually insurance) and invested similarly to those of most IRA annuities. In FIA accounts, the client shares in the upside potential for gain with the underwriting company and has better upside chances to earn better than the minimum performance guarantees the carriers provides for their IRA with you. This enables you to have performance that more closely matches your interest rate performance to stock and bond market performance. All insurance underwriters of IRA annuities guarantee a fixed minimum rate of return. Performance above the minimum in a FIA is credited to you when market conditions permit and you share with the carrier in these additional returns. Regardless of performance, the minimum rate of return is still owed and paid and the insurance carrier bears this risk of performance. Variable annuities, on the other hand, have no guarantee of performance and may pay nothing at all. Of course, with a greater risk in a variable annuity, performance can be stronger too but the trade off is no gain at all for the possible upside potential. Hope this explanation helps you understand that a fixed annuity can work perfectly well for an IRA.]]></description>
		<content:encoded><![CDATA[Most IRA's are fixed annuities but not all fixed annuities are IRA's. All that this means is that a fixed annuity can be a fixed annuity. A fixed annuity as an IRA is not subject to the direct effect of market risks because the account assets are not held in separate accounts and then  invested in marketable securities. Instead, an IRA is invested in high quality instruments by the carrier and the carrier assumes the risk to the IRA capital and to the rate of interest promised to you. The IRA pays interest at fixed rates. 

A variation of this arrangement is an IRA that is coupled with market investments that have more upside potential for gain without becoming variable products. These are called "fixed index annuities" (FIA) that are based upon one or another of the market indexes and one of several interest and gain crediting methods. The caveat is that the IRA is guaranteed by the underwriting company (usually insurance) and invested similarly to those of most IRA annuities. In FIA accounts, the client shares in the upside potential for gain with the underwriting company and has better upside chances to earn better than the minimum performance guarantees the carriers provides for their IRA with you. This enables you to have performance that more closely matches your interest rate performance to stock and bond market performance. All insurance underwriters of IRA annuities guarantee a fixed minimum rate of return. Performance above the minimum in a FIA is credited to you when market conditions permit and you share with the carrier in these additional returns. Regardless of performance, the minimum rate of return is still owed and paid and the insurance carrier bears this risk of performance. Variable annuities, on the other hand, have no guarantee of performance and may pay nothing at all. Of course, with a greater risk in a variable annuity, performance can be stronger too but the trade off is no gain at all for the possible upside potential. Hope this explanation helps you understand that a fixed annuity can work perfectly well for an IRA.]]></content:encoded>
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		<title>Answer on Can You Backdate Car Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/can-you-backdate-car-insurance#answer_28040</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 25 Jan 2016 16:56:31 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/can-you-backdate-car-insurance#answer_28040</guid>
		<description><![CDATA[I have a hard time imaging how backdating a car insurance policy could ever be good for the insurance carrier so, all the carriers I am familiar with refuse and prohibit backdating. 

I can think of a couple of reasons it is desirable to backdate insurance from the customer point of view:
1) To be able to prove insurance to a regulatory or financial entity on a certain prior date when coverage was not maintained.
2) To be able to obtain coverage for a loss and avoid out of pocket expenses on a certain prior date when no coverage existed.

Most carriers carefully underwrite the reason why any date but the present date is installed on an application for insurance. It is often also true that state law makes it illegal for an agent to backdate coverage. It doesn&#039;t matter if it is car insurance, home insurance, or even life insurance, backdating is a bad idea for the insurer and the agency or agent.

On this point, however, there are companies in the life insurance portion of my business that will permit backdating to save age. They won&#039;t accept this provision if the insured is not healthy or there are health events that create concern in the period of time back to the prior birth date. If you are not healthy now, they won&#039;t issue the coverage. Then, if they agree, all the premium back to the prior date will need to be paid but, the customer will enjoy a permanently lower rate based upon the prior age so this is the only time I am aware of when backdating - and I use the term very loosely here - is permitted on a written insurance policy. On car insurance, no backdating method I know of exists for all the reasons I have written (and some I haven&#039;t).]]></description>
		<content:encoded><![CDATA[I have a hard time imaging how backdating a car insurance policy could ever be good for the insurance carrier so, all the carriers I am familiar with refuse and prohibit backdating. 

I can think of a couple of reasons it is desirable to backdate insurance from the customer point of view:
1) To be able to prove insurance to a regulatory or financial entity on a certain prior date when coverage was not maintained.
2) To be able to obtain coverage for a loss and avoid out of pocket expenses on a certain prior date when no coverage existed.

Most carriers carefully underwrite the reason why any date but the present date is installed on an application for insurance. It is often also true that state law makes it illegal for an agent to backdate coverage. It doesn't matter if it is car insurance, home insurance, or even life insurance, backdating is a bad idea for the insurer and the agency or agent.

On this point, however, there are companies in the life insurance portion of my business that will permit backdating to save age. They won't accept this provision if the insured is not healthy or there are health events that create concern in the period of time back to the prior birth date. If you are not healthy now, they won't issue the coverage. Then, if they agree, all the premium back to the prior date will need to be paid but, the customer will enjoy a permanently lower rate based upon the prior age so this is the only time I am aware of when backdating - and I use the term very loosely here - is permitted on a written insurance policy. On car insurance, no backdating method I know of exists for all the reasons I have written (and some I haven't).]]></content:encoded>
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		<title>Answer on Can You Combine Annuities? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/annuities/can-you-combine-annuities#answer_28039</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 25 Jan 2016 16:17:24 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/annuities/can-you-combine-annuities#answer_28039</guid>
		<description><![CDATA[While the answer is - &quot;YES&quot;, you can combine annuities -  it is important to bear in mind that some annuities have different tax treatment than others. My advice is to only combine annuity money of a similar nature with that of another. For example, an IRA (individual Retirement Account) provides a deduction on the IRS 1040 against income. Because of this feature and tax benefit, all money coming out of an IRA, both interest and basis, are taxed as income upon distribution. In other words, because of the tax deduction, distributions from an IRA are taxed as if all the money coming from the account is being taxed for the first time.

An ordinary tax qualified annuity, a non-IRA annuity, incurs taxation only on the gain at the time of distribution. This exclusion formula recognizes that some of the money deposited was already taxed as ordinary income when you first earned it and this money will not be taxed again at distribution. 

That is why I suggest honoring the character of the money and keeping IRA&#039;s with IRA&#039;s, etc. This simple rule of thumb will help relieve you of explaining years later the source or the money and help you argue successfully that some money should not be taxed. Who among us will remember 30-40 years hence how these accounts were merged?

There are a whole other set of rules for conversions and  methods to avoid taxation prior to annuitization and the beginning of the payout period of your annuities. This answer covers general theory only on the idea you want to minimize taxation to the largest extent possible.]]></description>
		<content:encoded><![CDATA[While the answer is - "YES", you can combine annuities -  it is important to bear in mind that some annuities have different tax treatment than others. My advice is to only combine annuity money of a similar nature with that of another. For example, an IRA (individual Retirement Account) provides a deduction on the IRS 1040 against income. Because of this feature and tax benefit, all money coming out of an IRA, both interest and basis, are taxed as income upon distribution. In other words, because of the tax deduction, distributions from an IRA are taxed as if all the money coming from the account is being taxed for the first time.

An ordinary tax qualified annuity, a non-IRA annuity, incurs taxation only on the gain at the time of distribution. This exclusion formula recognizes that some of the money deposited was already taxed as ordinary income when you first earned it and this money will not be taxed again at distribution. 

That is why I suggest honoring the character of the money and keeping IRA's with IRA's, etc. This simple rule of thumb will help relieve you of explaining years later the source or the money and help you argue successfully that some money should not be taxed. Who among us will remember 30-40 years hence how these accounts were merged?

There are a whole other set of rules for conversions and  methods to avoid taxation prior to annuitization and the beginning of the payout period of your annuities. This answer covers general theory only on the idea you want to minimize taxation to the largest extent possible.]]></content:encoded>
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		<title>Answer on How To Compare Annuities? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/annuities/how-to-compare-annuities#answer_28038</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 25 Jan 2016 15:54:44 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/annuities/how-to-compare-annuities#answer_28038</guid>
		<description><![CDATA[An annuity is two things: 1) It is a systematic way to accumulate money; and 2) It is a systematic way to distribute (pay out) money. When you evaluate the options, these two functions are primary to understanding what you are looking at with any annuity. I will confine my answer to helping set the table for you to be able to compare one annuity to another. 

As a method of systematically accumulating money in an account, you need to be at work but your money also needs to be at work. The interest rate paid on your growing fund accumulation is how your money is considered to be working for you so one of the most important things to compare would be the rate of interest to be paid on your accumulations. Ask and know if there is a minimum rate of return. Beware: Proposals can propose rates of interest to be paid that may never come true so understanding the minimum rate of interest helps. It may also help to compare the performance of the annuity in terms of interest rate paid over time. Good companies can provide you a historical log of the rates they have paid on their accounts. You should also understand what the penalties to the interest accumulation occur when your decide to move the money to another provider. These are referred to as surrender charges or early termination fees. Commonly there are surrender charges for five to seven years so you should ask and know how you will be treated if you decide to move your money into another direction. Also, ask what other charges your account may be subjected to during the life of the annuity prior to making any distribution choices.

Years from now you will have choices as you decide how to turn your accumulated account into a stream of payments (or outright surrender). If you choose to surrender the account, know and understand what types of surrender fees might apply. Don&#039;t forget, you&#039;ll probably face a sizable taxable event if you surrender the account for cash on the gain above basis in your account. Legitimate rollover of the funds can avoid the tax and penalties under most circumstances. Depending on the type of annuity, all the money may be subject to taxation and if you surrender prior to 59 1/2 years of age, there is a 10% surtax collected by the government above and beyond all other tax calculations. Now, if you &quot;annuitize&quot; the account with the carrier handling your account, you are choosing to leave it with your annuity provider for the promise of a periodic stream of payments into the future. In most instances, once the account is annuitized, it can no longer be surrendered for cash. At this point you have selected a stream of payments for some period of time and based upon certain events in your life or your spouse, and based upon an assumed interest rate. These funds, as they are paid out, will also earn additional interest gains that are considered into the payout formula before determining the value of each monthly installment distributed to you from your account. This interest rate is usually fixed but modern variations do exist to have the interest rate move with market changes. 

Generally, the payout period is your lifetime, often with a minimum period of ten years. It can be longer if chosen. This would lower the monthly periodic installments because of the longer guarantee. You may also choose to have the annuity pay beyond your life and for the life of a spouse and this will further reduce the monthly payout because it is based upon a longer life expectancy of two lives.  The topic of distribution is too involved to provide much meaningful help but this should help you spur a reasonable conversation about annuities and help you compare one to another.]]></description>
		<content:encoded><![CDATA[An annuity is two things: 1) It is a systematic way to accumulate money; and 2) It is a systematic way to distribute (pay out) money. When you evaluate the options, these two functions are primary to understanding what you are looking at with any annuity. I will confine my answer to helping set the table for you to be able to compare one annuity to another. 

As a method of systematically accumulating money in an account, you need to be at work but your money also needs to be at work. The interest rate paid on your growing fund accumulation is how your money is considered to be working for you so one of the most important things to compare would be the rate of interest to be paid on your accumulations. Ask and know if there is a minimum rate of return. Beware: Proposals can propose rates of interest to be paid that may never come true so understanding the minimum rate of interest helps. It may also help to compare the performance of the annuity in terms of interest rate paid over time. Good companies can provide you a historical log of the rates they have paid on their accounts. You should also understand what the penalties to the interest accumulation occur when your decide to move the money to another provider. These are referred to as surrender charges or early termination fees. Commonly there are surrender charges for five to seven years so you should ask and know how you will be treated if you decide to move your money into another direction. Also, ask what other charges your account may be subjected to during the life of the annuity prior to making any distribution choices.

Years from now you will have choices as you decide how to turn your accumulated account into a stream of payments (or outright surrender). If you choose to surrender the account, know and understand what types of surrender fees might apply. Don't forget, you'll probably face a sizable taxable event if you surrender the account for cash on the gain above basis in your account. Legitimate rollover of the funds can avoid the tax and penalties under most circumstances. Depending on the type of annuity, all the money may be subject to taxation and if you surrender prior to 59 1/2 years of age, there is a 10% surtax collected by the government above and beyond all other tax calculations. Now, if you "annuitize" the account with the carrier handling your account, you are choosing to leave it with your annuity provider for the promise of a periodic stream of payments into the future. In most instances, once the account is annuitized, it can no longer be surrendered for cash. At this point you have selected a stream of payments for some period of time and based upon certain events in your life or your spouse, and based upon an assumed interest rate. These funds, as they are paid out, will also earn additional interest gains that are considered into the payout formula before determining the value of each monthly installment distributed to you from your account. This interest rate is usually fixed but modern variations do exist to have the interest rate move with market changes. 

Generally, the payout period is your lifetime, often with a minimum period of ten years. It can be longer if chosen. This would lower the monthly periodic installments because of the longer guarantee. You may also choose to have the annuity pay beyond your life and for the life of a spouse and this will further reduce the monthly payout because it is based upon a longer life expectancy of two lives.  The topic of distribution is too involved to provide much meaningful help but this should help you spur a reasonable conversation about annuities and help you compare one to another.]]></content:encoded>
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		<title>Answer on Is Car Insurance Higher On Smart Cars? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/is-car-insurance-higher-on-smart-cars#answer_27965</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 30 Nov 2015 13:44:05 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/is-car-insurance-higher-on-smart-cars#answer_27965</guid>
		<description><![CDATA[There is no more reason for a &quot;smart car&quot; to cost more than other cars of similar value or performance characteristics. That said, all cars are measured against the original actuarial expectations and when that experience deviates from expectatiions, the pricing for any car is adjusted upwards or downwards based upon this accumulated experience.]]></description>
		<content:encoded><![CDATA[There is no more reason for a "smart car" to cost more than other cars of similar value or performance characteristics. That said, all cars are measured against the original actuarial expectations and when that experience deviates from expectatiions, the pricing for any car is adjusted upwards or downwards based upon this accumulated experience.]]></content:encoded>
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		<title>Answer on My 16 Year Old Son Wants To Start A Pet Care Business In Our Neighborhood.  Should He (or I) Get Liability Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/16-year-old-son-wants-start-pet-care-business-neighborhood-get-liability-insurance#answer_27739</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 15 Oct 2015 16:54:46 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/16-year-old-son-wants-start-pet-care-business-neighborhood-get-liability-insurance#answer_27739</guid>
		<description><![CDATA[Entering business without appropriate liability insurance can result in financial consequences that will dwarf the premium that would be required to have coverage. Just because he is 16 years old will not relieve him of the financial responsibility in the event of an occurrence where someone is injured or property is damaged. I don&#039;t buy into the notion that insurance gives a business credibility but I do agree that it is the best single method of protecting assets and the future ability to earn a living. At 16 years old, another issue develops and that is whether or not he meets legal requirements to start or open a business or can entered into contracts. And, because your son is not of a legal age, will his parents or legal guardian be responsible for any losses that occur in the operation of the business? If a case can be made for the inclusion of parents or guardians into a claim or lawsuit, the stakes just went up dramatically.  So, insurance is a minimum necessity.  One other thought.  Insurance carriers may not insure your son because of his age, but they are more likely to concern themselves with the combination of his age and lack of business experience.  Many carriers having the best rates have the requirement of at least a few years of experience.  While coverage may be available in a specialty insurance marketplace, our best carriers will generally have issues with a 16 year old new business customer first entering and insuring a business.  Once again, a parent might be necessary to make the business insurance happen. But back to your question: Absolutely a yes on the need for insurance. Good luck.]]></description>
		<content:encoded><![CDATA[Entering business without appropriate liability insurance can result in financial consequences that will dwarf the premium that would be required to have coverage. Just because he is 16 years old will not relieve him of the financial responsibility in the event of an occurrence where someone is injured or property is damaged. I don't buy into the notion that insurance gives a business credibility but I do agree that it is the best single method of protecting assets and the future ability to earn a living. At 16 years old, another issue develops and that is whether or not he meets legal requirements to start or open a business or can entered into contracts. And, because your son is not of a legal age, will his parents or legal guardian be responsible for any losses that occur in the operation of the business? If a case can be made for the inclusion of parents or guardians into a claim or lawsuit, the stakes just went up dramatically.  So, insurance is a minimum necessity.  One other thought.  Insurance carriers may not insure your son because of his age, but they are more likely to concern themselves with the combination of his age and lack of business experience.  Many carriers having the best rates have the requirement of at least a few years of experience.  While coverage may be available in a specialty insurance marketplace, our best carriers will generally have issues with a 16 year old new business customer first entering and insuring a business.  Once again, a parent might be necessary to make the business insurance happen. But back to your question: Absolutely a yes on the need for insurance. Good luck.]]></content:encoded>
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		<title>Answer on Is Homeowners Insurance Transferable? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/is-homeowners-insurance-transferable#answer_27738</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 15 Oct 2015 16:26:31 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/is-homeowners-insurance-transferable#answer_27738</guid>
		<description><![CDATA[The answer as to the &quot;right to transfer&quot; coverage is specifically addressed in the policy conditions and it generally limits transfer. In the conditions section of your policy the insurance carrier rejects a transfer of the policy without their consent for all the reasons and others not mentioned in Ken Boncela&#039;s answer to this question. All carriers administer this provision differently but generally speaking a transfer from wife to husband, or from husband to wife is typically granted without the need to rewrite the policy. If your name appears on the policy with others the carrier may require a statement signed by the other party to disclaim the interest in the policy of the others named in the declaration page, but a new policy isn&#039;t generally required in this instance either.  This type situation is one that may come up when a house is owned jointly by family members but not insured as a business or partnership name. As a general rule of thumb, transferred policies carry with the coverage, the accumulated experience of the previous owner(s) so for you, it might be better to shed the past and start anew on a policy issued in your name alone. In almost every other instance, transfer is rejected and a new policy is required.]]></description>
		<content:encoded><![CDATA[The answer as to the "right to transfer" coverage is specifically addressed in the policy conditions and it generally limits transfer. In the conditions section of your policy the insurance carrier rejects a transfer of the policy without their consent for all the reasons and others not mentioned in Ken Boncela's answer to this question. All carriers administer this provision differently but generally speaking a transfer from wife to husband, or from husband to wife is typically granted without the need to rewrite the policy. If your name appears on the policy with others the carrier may require a statement signed by the other party to disclaim the interest in the policy of the others named in the declaration page, but a new policy isn't generally required in this instance either.  This type situation is one that may come up when a house is owned jointly by family members but not insured as a business or partnership name. As a general rule of thumb, transferred policies carry with the coverage, the accumulated experience of the previous owner(s) so for you, it might be better to shed the past and start anew on a policy issued in your name alone. In almost every other instance, transfer is rejected and a new policy is required.]]></content:encoded>
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		<title>Answer on If Donald Trump Becomes President Is It Possible That He Can Get Rid Of Obamacare? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/health-insurance/if-donald-trump-becomes-president-is-it-possible-that-he-can-get-rid-of-obamacare#answer_27721</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Tue, 13 Oct 2015 17:46:23 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/health-insurance/if-donald-trump-becomes-president-is-it-possible-that-he-can-get-rid-of-obamacare#answer_27721</guid>
		<description><![CDATA[Despite assertions to the contrary, it is entirely possible that Obamacare (AKA the ACA) could be eliminated but Trump won&#039;t have the power to make that change by himself.  Many point to the Supreme Court rulings as legitimacy but they were made on narrow points of law and the power of the purse will have be an effective means of gutting the law (if that is a course chosen). More likely, the plan will be fundamentally altered. As a plan it has reached well past what most Americans consider reasonable and one of the undeniable aspects of Obamacare is the subsidy system which phases out over a period of several years.  Once the subsidies die many of those who are receiving subsidized premiums will again find their insurance to be too expensive.  Additionally, when the IRS begins assessing people penalties for failing to maintain coverage, attitudes will shift back towards a voluntary insurance programs.  Frankly, the most logical outcome with Obamacare is significant changes to structure and subsidies and a relaxation of onerous and overbearing aspects of the law that politicians will have to consider to make it more universally acceptable among health care and the population.  Maybe more importantly, some speculate that Obamacare is already in financial trouble but the real test is in seven or eight years when all the back end loading of losses will overwhelm the premiums and result in a political uproar when the actuaries insist on gigantic infusions of tax money to keep social medicine afloat.]]></description>
		<content:encoded><![CDATA[Despite assertions to the contrary, it is entirely possible that Obamacare (AKA the ACA) could be eliminated but Trump won't have the power to make that change by himself.  Many point to the Supreme Court rulings as legitimacy but they were made on narrow points of law and the power of the purse will have be an effective means of gutting the law (if that is a course chosen). More likely, the plan will be fundamentally altered. As a plan it has reached well past what most Americans consider reasonable and one of the undeniable aspects of Obamacare is the subsidy system which phases out over a period of several years.  Once the subsidies die many of those who are receiving subsidized premiums will again find their insurance to be too expensive.  Additionally, when the IRS begins assessing people penalties for failing to maintain coverage, attitudes will shift back towards a voluntary insurance programs.  Frankly, the most logical outcome with Obamacare is significant changes to structure and subsidies and a relaxation of onerous and overbearing aspects of the law that politicians will have to consider to make it more universally acceptable among health care and the population.  Maybe more importantly, some speculate that Obamacare is already in financial trouble but the real test is in seven or eight years when all the back end loading of losses will overwhelm the premiums and result in a political uproar when the actuaries insist on gigantic infusions of tax money to keep social medicine afloat.]]></content:encoded>
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		<title>Answer on What Are The Best Ways For Someone Under 30 To Start Planning For Retirement? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/retirement-plans/what-are-the-best-ways-for-someone-under-30-to-start-planning-for-retirement#answer_27720</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Tue, 13 Oct 2015 17:14:16 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/retirement-plans/what-are-the-best-ways-for-someone-under-30-to-start-planning-for-retirement#answer_27720</guid>
		<description><![CDATA[The easiest answer is to &quot;do something&quot;.  Save something.  If your employer doesn&#039;t provide a 401K match, open up a Roth IRA and make regular, periodic deposits to the account.  An IRA or non-qualified annuity are fine too.  If you are in business and have no employees, open up a SEP (simplified employer pension).  All of the latter have limits to the contributions and eligibility.  You should consider setting aside your retirement contribution before you spend on anything else.  I suggest saving 10-20%, with half of these funds liquid in demand savings accounts but only to the point you have enough on hand to equal 6 months of your living expenses.  Then move more of the money into a tax preferred account until you max out your contribution limits.  You can use life insurance as an asset accumulation vehicle as well and as you age you may be able to violate the TAMRA and turn the policies into modified endowment contracts that can become cash cows you fatten up for the future. Don&#039;t forget variable and fixed index accounts, and mutual funds and stock index accounts.  This should give you enough food for research but I&#039;d start with safe accounts and build out with an eye on avoiding the ravages of taxation until the government says you have met the limits of the tax preferenced acounts.  Good luck.  Oh, by the way, the longer you wait to start the harder it will be to accomplish money enough for retirement.  I can prove mathematically that someone who starts today and maximizes their contributions for ten years cannot be eclipsed by someone waiting for ten years and starting the same process even if you quit and all other factors are equal. It&#039;s true, so, get started and good luck.  You may be relying upon yourself more in retirement than you know today.]]></description>
		<content:encoded><![CDATA[The easiest answer is to "do something".  Save something.  If your employer doesn't provide a 401K match, open up a Roth IRA and make regular, periodic deposits to the account.  An IRA or non-qualified annuity are fine too.  If you are in business and have no employees, open up a SEP (simplified employer pension).  All of the latter have limits to the contributions and eligibility.  You should consider setting aside your retirement contribution before you spend on anything else.  I suggest saving 10-20%, with half of these funds liquid in demand savings accounts but only to the point you have enough on hand to equal 6 months of your living expenses.  Then move more of the money into a tax preferred account until you max out your contribution limits.  You can use life insurance as an asset accumulation vehicle as well and as you age you may be able to violate the TAMRA and turn the policies into modified endowment contracts that can become cash cows you fatten up for the future. Don't forget variable and fixed index accounts, and mutual funds and stock index accounts.  This should give you enough food for research but I'd start with safe accounts and build out with an eye on avoiding the ravages of taxation until the government says you have met the limits of the tax preferenced acounts.  Good luck.  Oh, by the way, the longer you wait to start the harder it will be to accomplish money enough for retirement.  I can prove mathematically that someone who starts today and maximizes their contributions for ten years cannot be eclipsed by someone waiting for ten years and starting the same process even if you quit and all other factors are equal. It's true, so, get started and good luck.  You may be relying upon yourself more in retirement than you know today.]]></content:encoded>
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		<title>Answer on What Insurance Covers Curettage / Uterus Scraping? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/health-insurance/insurance-covers-curettage-uterus-scraping#answer_27719</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Tue, 13 Oct 2015 17:03:11 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/health-insurance/insurance-covers-curettage-uterus-scraping#answer_27719</guid>
		<description><![CDATA[You need health insurance. D&#038;C procedures should be covered in bona fide major medical health insurance policies.  It is possible that the deductible is very large and the cost of the procedures have not reached the deductible threshhold.  You probably will find little benefit in daily indemnity health insurance programs because these pay for a hospital stay or limited amounts for procedures.]]></description>
		<content:encoded><![CDATA[You need health insurance. D&amp;C procedures should be covered in bona fide major medical health insurance policies.  It is possible that the deductible is very large and the cost of the procedures have not reached the deductible threshhold.  You probably will find little benefit in daily indemnity health insurance programs because these pay for a hospital stay or limited amounts for procedures.]]></content:encoded>
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		<title>Answer on How Does A Deductible Work In Home Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/how-does-a-deductible-work-in-home-insurance#answer_27718</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Tue, 13 Oct 2015 16:56:06 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/how-does-a-deductible-work-in-home-insurance#answer_27718</guid>
		<description><![CDATA[A deductible is one of the ways your insurance carrier helps to keep insurance affordable. There are three basic ways your financial participation in insurance can work.  First, you agree to pay premium for a policy.  Second, in most policies, you agree to pay the first dollars of a property loss and that is what we call the &quot;deductible&quot;.  (Don&#039;t confuse a deductible with a co-payment agreement.) You also agree, whether you know it or not, to be responsible for every dollar of loss above and beyond the limits and amounts of insurance you purchased.  These three are the ways you agree to pay for the losses you suffer. Most of us only encounter the deductible and premium payments as typical methods of paying for our losses.  A deductible helps the carrier avoid the expense of investigating, processing, and paying small claims.  A small claims, say under $500, may cost as much to investigate, process and pay with a check or draft as the cost of the actual loss has cost the carrier.  A deductible is a way for your insurance to cost less and a way for you to afford the cost of insurance.  It is also a way for the carrier to avoid the costly process of paying small losses.  When the cost of the repair or replacement of the property is determined, your deductible is subtracted from the final payment and you become responsible to contribute this amount to obtain the repair or replacement of your lost property. Deductibles are rather straightforward and I hope that the latter helps you understand the way a deductible works and why it is included as a part of your property insurance policy.]]></description>
		<content:encoded><![CDATA[A deductible is one of the ways your insurance carrier helps to keep insurance affordable. There are three basic ways your financial participation in insurance can work.  First, you agree to pay premium for a policy.  Second, in most policies, you agree to pay the first dollars of a property loss and that is what we call the "deductible".  (Don't confuse a deductible with a co-payment agreement.) You also agree, whether you know it or not, to be responsible for every dollar of loss above and beyond the limits and amounts of insurance you purchased.  These three are the ways you agree to pay for the losses you suffer. Most of us only encounter the deductible and premium payments as typical methods of paying for our losses.  A deductible helps the carrier avoid the expense of investigating, processing, and paying small claims.  A small claims, say under $500, may cost as much to investigate, process and pay with a check or draft as the cost of the actual loss has cost the carrier.  A deductible is a way for your insurance to cost less and a way for you to afford the cost of insurance.  It is also a way for the carrier to avoid the costly process of paying small losses.  When the cost of the repair or replacement of the property is determined, your deductible is subtracted from the final payment and you become responsible to contribute this amount to obtain the repair or replacement of your lost property. Deductibles are rather straightforward and I hope that the latter helps you understand the way a deductible works and why it is included as a part of your property insurance policy.]]></content:encoded>
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		<title>Answer on Does an insurance company have a duty to defend after the policy has been canceled? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/insurance-company-duty-defend-policy-canceled#answer_27656</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Wed, 07 Oct 2015 17:00:04 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/insurance-company-duty-defend-policy-canceled#answer_27656</guid>
		<description><![CDATA[The other respondents explain that two basic triggers exist within common liability coverage policies.  It is important to realize that most personal insurance - auto, home, motorcycle, rv - are based upon the occurrence trigger in the insurance policy.  An occurrence is an event including repeated exposures to the same condition, that cause loss covered by the policy.  You&#039;ll understand that if the loss &quot;occurs&quot; during the policy period, the loss is coverable and a duty to defend exists until such time as it is determined after further investigation that coverage is not provided by the policy.  At that time the carrier would probably extend a &quot;reservation of rights&quot; letter to you to notify you that the investigation of the loss events are revealing to the carrier that the loss is not covered for some reason contained within the policy or due to the events that occurred.  Nevertheless, if the loss &quot;occurs&quot; during the period the policy was effective, and barring exclusions and limitations, their is coverage in an occurrence policy.

A &quot;claims made&quot; policy changes what triggers the benefits of the policy.  In the case of claims made coverage, generally only written on business and professional liability exposures, the trigger is the event and when it occurred.  What is different now is that the claims must be first made during the period of coverage or a subsequent policy.  If a claim is permitted to be made on subsequent policies, the chain of coverage needs to be uninterrupted and the &quot;retroactive&quot; date for coverage to be set to a point before the actual date of the loss.  Claims Made policies were designed to help eliminate the chance that years and years of coverage on an occurrence policy could not be stacked one upon the other to generate large amounts of coverage.  In the case of claims made policies, only the current policy limit is exposed to loss and not a stack of limits from policies covering prior annual periods.

One other point that is necessary to understand.  Generally, there are limitations on how long after a policy is cancelled for a claim to be presented.  Occurrence policies are much more accommodating here.  On the other hand, claims made policies have a limited period of time after the policy ends for a claim to be made.  This is referred to as extended discovery and extended discovery on otherwise unendorsed policies is only 60 days.  That is, you only have sixty days to present a claim for coverage at the end of a claims made policy.  Additional extended periods of discovery are available at additional cost but each carrier may have different periods of discovery available.  This feature on a claims made policy provides the &quot;tail&quot; of coverage that an occurrence policy includes without additional charge.  A &quot;tail&quot; is the time beyond the period of coverage where a claim may be first reported or appear on the books of the carrier.  Liability type losses can have a long &quot;tail&quot; due to the nature of the coverage and potential loss.  Property losses, on the other hand, generally have short &quot;tails&quot; where the loss is not known.  The reserve that the carrier must maintain within its accounting for these losses is not as the IBNR (incurred but not reported) loss reserve.  Over time the carrier reduces this reserve in recognition that the further past the end of a policy that they travel, the less likely a loss has occurred or will be reported.  This should help you understand just how much must taken into account to answer your generalized question. I hope this helps answer your question.]]></description>
		<content:encoded><![CDATA[The other respondents explain that two basic triggers exist within common liability coverage policies.  It is important to realize that most personal insurance - auto, home, motorcycle, rv - are based upon the occurrence trigger in the insurance policy.  An occurrence is an event including repeated exposures to the same condition, that cause loss covered by the policy.  You'll understand that if the loss "occurs" during the policy period, the loss is coverable and a duty to defend exists until such time as it is determined after further investigation that coverage is not provided by the policy.  At that time the carrier would probably extend a "reservation of rights" letter to you to notify you that the investigation of the loss events are revealing to the carrier that the loss is not covered for some reason contained within the policy or due to the events that occurred.  Nevertheless, if the loss "occurs" during the period the policy was effective, and barring exclusions and limitations, their is coverage in an occurrence policy.

A "claims made" policy changes what triggers the benefits of the policy.  In the case of claims made coverage, generally only written on business and professional liability exposures, the trigger is the event and when it occurred.  What is different now is that the claims must be first made during the period of coverage or a subsequent policy.  If a claim is permitted to be made on subsequent policies, the chain of coverage needs to be uninterrupted and the "retroactive" date for coverage to be set to a point before the actual date of the loss.  Claims Made policies were designed to help eliminate the chance that years and years of coverage on an occurrence policy could not be stacked one upon the other to generate large amounts of coverage.  In the case of claims made policies, only the current policy limit is exposed to loss and not a stack of limits from policies covering prior annual periods.

One other point that is necessary to understand.  Generally, there are limitations on how long after a policy is cancelled for a claim to be presented.  Occurrence policies are much more accommodating here.  On the other hand, claims made policies have a limited period of time after the policy ends for a claim to be made.  This is referred to as extended discovery and extended discovery on otherwise unendorsed policies is only 60 days.  That is, you only have sixty days to present a claim for coverage at the end of a claims made policy.  Additional extended periods of discovery are available at additional cost but each carrier may have different periods of discovery available.  This feature on a claims made policy provides the "tail" of coverage that an occurrence policy includes without additional charge.  A "tail" is the time beyond the period of coverage where a claim may be first reported or appear on the books of the carrier.  Liability type losses can have a long "tail" due to the nature of the coverage and potential loss.  Property losses, on the other hand, generally have short "tails" where the loss is not known.  The reserve that the carrier must maintain within its accounting for these losses is not as the IBNR (incurred but not reported) loss reserve.  Over time the carrier reduces this reserve in recognition that the further past the end of a policy that they travel, the less likely a loss has occurred or will be reported.  This should help you understand just how much must taken into account to answer your generalized question. I hope this helps answer your question.]]></content:encoded>
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		<title>Answer on Can You Get Insurance That Will Provide You An Extended, Paid Maternity Leave From Your Job? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/health-insurance/can-you-get-insurance-that-will-provide-you-an-extended-paid-maternity-leave-from-your-job#answer_27655</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Wed, 07 Oct 2015 16:09:01 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/health-insurance/can-you-get-insurance-that-will-provide-you-an-extended-paid-maternity-leave-from-your-job#answer_27655</guid>
		<description><![CDATA[To answer your question requires us to consider the requirements under law for the family medical leave act.  The FMLA imposes upon employers certain obligations to provide the employee unpaid leave from their job without fear of losing their job.  Employees continue to enjoy employer provided medical benefits as if they are active at work.  Maternity leave is an eligible medical event.  Employees are entitled to up to twelve work weeks of leave in a 52 week year.  Seek out more information by searching the Family and Medical Leave Act of 1993 for more information.  Now, as to obtaining an &quot;extended, paid maternity leave from your job&quot;, you seem to be asking on whether there is a way to buy an extended period of benefit for a group, employer sponsored medical or disability income program.  I have not encountered this option as a benefit in 38 years of work in this industry but, the best option is to contact the benefits administrator or Human Resources at your employer with this question.  No optional benefit available will waive the rights or duties of the employer under common policy and practice, nor under the FLMA of 1993.  There are indemnification type health insurance policies that may provide some cash benefit, and you can buy disability insurance prior to the pregancy that can cover medical as a disability, but they won&#039;t impact the employer benefits nor their right to expect you to return to work when their maternity leave expires.  The indemnity policies and disability insurance will have specific underwriting requirements and being currently pregnant is likely to be a condition that prohibits a benefit until the pregnancy runs its course.]]></description>
		<content:encoded><![CDATA[To answer your question requires us to consider the requirements under law for the family medical leave act.  The FMLA imposes upon employers certain obligations to provide the employee unpaid leave from their job without fear of losing their job.  Employees continue to enjoy employer provided medical benefits as if they are active at work.  Maternity leave is an eligible medical event.  Employees are entitled to up to twelve work weeks of leave in a 52 week year.  Seek out more information by searching the Family and Medical Leave Act of 1993 for more information.  Now, as to obtaining an "extended, paid maternity leave from your job", you seem to be asking on whether there is a way to buy an extended period of benefit for a group, employer sponsored medical or disability income program.  I have not encountered this option as a benefit in 38 years of work in this industry but, the best option is to contact the benefits administrator or Human Resources at your employer with this question.  No optional benefit available will waive the rights or duties of the employer under common policy and practice, nor under the FLMA of 1993.  There are indemnification type health insurance policies that may provide some cash benefit, and you can buy disability insurance prior to the pregancy that can cover medical as a disability, but they won't impact the employer benefits nor their right to expect you to return to work when their maternity leave expires.  The indemnity policies and disability insurance will have specific underwriting requirements and being currently pregnant is likely to be a condition that prohibits a benefit until the pregnancy runs its course.]]></content:encoded>
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		<title>Answer on Does Owning A Home Affect Car Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/does-owning-a-home-affect-car-insurance#answer_27654</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Wed, 07 Oct 2015 15:46:07 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/does-owning-a-home-affect-car-insurance#answer_27654</guid>
		<description><![CDATA[Before the advent of the use of the use of a credit score and multi-variant rating formulas, rate making relied upon what the industry referred to as &quot;stability factors&quot; to arrive at rates. Stability factors are things like age, marital status, whether you have a job, have children, and similar types of considerations.  The idea was (and is today) a person had a better chance of being profitable as a customer (from the insurer&#039;s point of view) if you are stable.  So, stability factors were things about you and your life that reflect upon your commitment to stability.  Owning a house was certainly a stability factor.  Today, the rate making logic is decided on a similar assumption about your stability as a customer but we lean harder on credit as an (all encompassing) indicator than we do on these other factors.  However, most carriers have more than one rate that is possible depending upon answers to the stability factors that are being considered, with credit score and claims history being primary factors.  Because the question is an open question subject to more than one interpretation, owning a home does enter into auto insurance from a stability point of view, and a rate point of view.  Carriers understand that customers with auto or home, but not both, have more claims and cost more on claims.  Those with auto and home together with one carrier will be (on average) 15-20% less costly to insured from the claims point of view.  That is why carriers offer auto-home multi-line discounts because they know the customer will be a better risk, incur fewer losses, and have losses that cost less, than the customers with only a single line of business with the carrier.  So, it is true that owning a home does have an impact on auto insurance.  Now, where it isn&#039;t likely to have any impact is on the policy coverage itself.  Home and auto policies alike are written to provide the coverage intended so having a homeowner policy isn&#039;t likely going to impact the coverage on your auto policy.  These are the three possible paths your question creates (in my assessment) so yes, having home insurance does impact auto insurance from a cost and underwriting perspective, but not from any coverage issue by and large.]]></description>
		<content:encoded><![CDATA[Before the advent of the use of the use of a credit score and multi-variant rating formulas, rate making relied upon what the industry referred to as "stability factors" to arrive at rates. Stability factors are things like age, marital status, whether you have a job, have children, and similar types of considerations.  The idea was (and is today) a person had a better chance of being profitable as a customer (from the insurer's point of view) if you are stable.  So, stability factors were things about you and your life that reflect upon your commitment to stability.  Owning a house was certainly a stability factor.  Today, the rate making logic is decided on a similar assumption about your stability as a customer but we lean harder on credit as an (all encompassing) indicator than we do on these other factors.  However, most carriers have more than one rate that is possible depending upon answers to the stability factors that are being considered, with credit score and claims history being primary factors.  Because the question is an open question subject to more than one interpretation, owning a home does enter into auto insurance from a stability point of view, and a rate point of view.  Carriers understand that customers with auto or home, but not both, have more claims and cost more on claims.  Those with auto and home together with one carrier will be (on average) 15-20% less costly to insured from the claims point of view.  That is why carriers offer auto-home multi-line discounts because they know the customer will be a better risk, incur fewer losses, and have losses that cost less, than the customers with only a single line of business with the carrier.  So, it is true that owning a home does have an impact on auto insurance.  Now, where it isn't likely to have any impact is on the policy coverage itself.  Home and auto policies alike are written to provide the coverage intended so having a homeowner policy isn't likely going to impact the coverage on your auto policy.  These are the three possible paths your question creates (in my assessment) so yes, having home insurance does impact auto insurance from a cost and underwriting perspective, but not from any coverage issue by and large.]]></content:encoded>
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		<title>Answer on A Whole Life Policy Owner Passed Away With Cash Surrender Value Higher Than The Death Benefit.  Which Amount Will The Beneficiary Get? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/whole-life-policy-owner-passed-away-cash-surrender-value-higher-death-benefit-amount-will-beneficiary-get#answer_27458</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 03 Sep 2015 21:53:34 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/whole-life-policy-owner-passed-away-cash-surrender-value-higher-death-benefit-amount-will-beneficiary-get#answer_27458</guid>
		<description><![CDATA[Another possibility is life insurance that has violated the corridors of risk and has been allowed to become, or was originally intended to be, a Modified Endowment Contract (MEC). The corridor of risk applies usually to universal life insurance type policies and it is the established maximum cash surrender value of the contract as it pertains to the amount of coverage and the age of the insured. The tests prescribed by the IRS limits what remains life insurance and what gets treated as a MEC. Regulations established in the 1980&#039;s limited this risk of abusing life insurance in this way because people discovered that universal life policies could be a great place to stash cash through the payment of excess premium in the flexible universal life policy, of which the IRS didn&#039;t like much  When a life insurance policy becomes a MEC it is still a life insurance policy for death.  Any pre-death distributions, however, cause the policy to be treated more like an annuity and distributions are treated as income first. That limits the use of the funds during the life of the insured.  Life insurance treats policy loans as the payment of the basis (premiums paid in) first, and this feature is lost when a policy becomes a MEC. In fact, a number of tax-favorable benefits of life insurance are lost. To determine if a life policy has become a MEC, premiums are compared on a 7-pay test that helps establish the amount of premium, after paying 7 level annual premium amounts, that would pay up the policy in the first seven years after the life policy was issued. Being subjected to the 7-pay test or MEC test can occur well after the first seven years if there has been a material change in the policy. However, despite all of the latter, a life insurance policy that is stuffed with cash and violates the 7-pay MEC test down the road, has specific advantages even considering the disadvantages. One of those advantages is having more cash value than the face amount of coverage at death so you should also consider whether this life insurance became a MEC due to some specific financial or estate planning course of action taken by the decedent.  Money at death under life insurance made to be a MEC are usually deliberate planning moves to pass cash or benefits of cash beyond the next immediate generation. For example, Grandpa wants to give each grandchild a sizable sum of money but wants to avoid generation skipping taxation.  A MEC that pays as a death benefit is a contract paid, rather than money given.  Check it out but this is another possibility for life insurance with too much cash value!]]></description>
		<content:encoded><![CDATA[Another possibility is life insurance that has violated the corridors of risk and has been allowed to become, or was originally intended to be, a Modified Endowment Contract (MEC). The corridor of risk applies usually to universal life insurance type policies and it is the established maximum cash surrender value of the contract as it pertains to the amount of coverage and the age of the insured. The tests prescribed by the IRS limits what remains life insurance and what gets treated as a MEC. Regulations established in the 1980's limited this risk of abusing life insurance in this way because people discovered that universal life policies could be a great place to stash cash through the payment of excess premium in the flexible universal life policy, of which the IRS didn't like much  When a life insurance policy becomes a MEC it is still a life insurance policy for death.  Any pre-death distributions, however, cause the policy to be treated more like an annuity and distributions are treated as income first. That limits the use of the funds during the life of the insured.  Life insurance treats policy loans as the payment of the basis (premiums paid in) first, and this feature is lost when a policy becomes a MEC. In fact, a number of tax-favorable benefits of life insurance are lost. To determine if a life policy has become a MEC, premiums are compared on a 7-pay test that helps establish the amount of premium, after paying 7 level annual premium amounts, that would pay up the policy in the first seven years after the life policy was issued. Being subjected to the 7-pay test or MEC test can occur well after the first seven years if there has been a material change in the policy. However, despite all of the latter, a life insurance policy that is stuffed with cash and violates the 7-pay MEC test down the road, has specific advantages even considering the disadvantages. One of those advantages is having more cash value than the face amount of coverage at death so you should also consider whether this life insurance became a MEC due to some specific financial or estate planning course of action taken by the decedent.  Money at death under life insurance made to be a MEC are usually deliberate planning moves to pass cash or benefits of cash beyond the next immediate generation. For example, Grandpa wants to give each grandchild a sizable sum of money but wants to avoid generation skipping taxation.  A MEC that pays as a death benefit is a contract paid, rather than money given.  Check it out but this is another possibility for life insurance with too much cash value!]]></content:encoded>
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		<title>Answer on Does Insurance Cover A Dropped Floor Or Foundation? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/insurance-cover-dropped-floor-foundation#answer_27457</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 03 Sep 2015 21:30:46 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/insurance-cover-dropped-floor-foundation#answer_27457</guid>
		<description><![CDATA[The section of the policy that will likely answer the question the best will be found in the &quot;Exclusions&quot;.  In the ISO Homeowner Form 3 (HO3) policy, emulated by most insurers if not used directly, and the most common form of homeowner insurance issued in the USA, is the form I take this information from. It says: Collapse, Settling, subsidence, earth movement (unless endorsed otherwise), landslide, mudslide, mudflow, sinkhole, or any other impact of the earth sinking, rising or shifting that impact the foundation structure, walls, footings or floor are specifically excluded. An exception is made for the impact of losses caused by fire but only to the extent caused by the fire. In other words, if a fire ensues and the building eventually collapses, it is covered to the extent the damage was caused due to the damage of fire. There are certainly regional exceptions. In Ohio, due to past mining activity, subsidence has to be offered in various counties (but does not need to be purchased). Florida has a problem with sinkholes and may have state mandated coverage changes. California has issues with earthquake and almost certainly requires at least the offer of earthquake insurance. Check with your local insurance representative for the advice that fits your particular locality.]]></description>
		<content:encoded><![CDATA[The section of the policy that will likely answer the question the best will be found in the "Exclusions".  In the ISO Homeowner Form 3 (HO3) policy, emulated by most insurers if not used directly, and the most common form of homeowner insurance issued in the USA, is the form I take this information from. It says: Collapse, Settling, subsidence, earth movement (unless endorsed otherwise), landslide, mudslide, mudflow, sinkhole, or any other impact of the earth sinking, rising or shifting that impact the foundation structure, walls, footings or floor are specifically excluded. An exception is made for the impact of losses caused by fire but only to the extent caused by the fire. In other words, if a fire ensues and the building eventually collapses, it is covered to the extent the damage was caused due to the damage of fire. There are certainly regional exceptions. In Ohio, due to past mining activity, subsidence has to be offered in various counties (but does not need to be purchased). Florida has a problem with sinkholes and may have state mandated coverage changes. California has issues with earthquake and almost certainly requires at least the offer of earthquake insurance. Check with your local insurance representative for the advice that fits your particular locality.]]></content:encoded>
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		<title>Answer on Does Homeowners Insurance Cover Stolen AC Units? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/does-homeowners-insurance-cover-stolen-ac-units#answer_27456</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 03 Sep 2015 20:49:58 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/does-homeowners-insurance-cover-stolen-ac-units#answer_27456</guid>
		<description><![CDATA[The most common homeowner policy forms of coverage written in the USA today includes the peril of theft - also called the &quot;cause of loss&quot;.  All policies also include limitations and exclusions that may restrict theft to certain dollar figures or certain types of property to a certain dollar amounts. Generally speaking, the theft of an air conditioning unit is not one of the common types of property that is limited or excluded. You should not assume this advice is the same for policies covering rental properties as they are occasionally written without the theft peril due to the choice of coverage terms. In some rare cases theft is a cause of loss that can be bought back in certain coverage amounts for an additional premium on rental/landlord type policies. The DF3 or DP3 forms include theft for landlords but check local representatives for specific advice in your locality that conforms to local custom and practice.  Either way, it is still a good question for your local representative who can point to the exact language or limitation in your insurance coverage and help you understand how to deal with the new exposure to the theft of devices and property that has aluminum, copper, and other metals of value from your property..]]></description>
		<content:encoded><![CDATA[The most common homeowner policy forms of coverage written in the USA today includes the peril of theft - also called the "cause of loss".  All policies also include limitations and exclusions that may restrict theft to certain dollar figures or certain types of property to a certain dollar amounts. Generally speaking, the theft of an air conditioning unit is not one of the common types of property that is limited or excluded. You should not assume this advice is the same for policies covering rental properties as they are occasionally written without the theft peril due to the choice of coverage terms. In some rare cases theft is a cause of loss that can be bought back in certain coverage amounts for an additional premium on rental/landlord type policies. The DF3 or DP3 forms include theft for landlords but check local representatives for specific advice in your locality that conforms to local custom and practice.  Either way, it is still a good question for your local representative who can point to the exact language or limitation in your insurance coverage and help you understand how to deal with the new exposure to the theft of devices and property that has aluminum, copper, and other metals of value from your property..]]></content:encoded>
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		<title>Answer on Am I Liable If Someone Gets Hurt In My Timeshare? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/liable-someone-gets-hurt-timeshare#answer_27455</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 03 Sep 2015 20:38:05 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/liable-someone-gets-hurt-timeshare#answer_27455</guid>
		<description><![CDATA[Let&#039;s be realistic, your home is where you are at and a reasonably understanding of liability means you can be held responsible for the injuries a guest suffers while in your home. Your responsibility in any event isn&#039;t likely to absolve the property management company (or the property owner) of liability (or at least a duty to defend themselves) because no self-respecting plaintiff&#039;s attorney would let a potential pocket full of money get by him or her in the process of assigning liability. The good news is that if you have home insurance you have some amount of liability insurance to protect for the injuries that someone may suffer as a consequence of your negligence anywhere you are at. That includes the time share you have bought and including the property you have traded for in your time-share relationship. Now, none of the latter should be construed to make you liable for any event, only to clarify that you are indeed responsible for your actions and that includes the space you may be occupying as a temporary residence, whether a time share or a hotel room. How much liability you have depends on plenty of things we could speculate on but the answer above stands for itself.  Even if you are found to be free of liability, the cost of defense and getting to that point in time after an event is still costly and your liability coverage includes the benefit of defense against these allegations. Liability is expensive to defend and costly to pay for in the absence of insurance so a basic understanding of the tort of negligence and your duties is all I intend to imply in the latter answer.]]></description>
		<content:encoded><![CDATA[Let's be realistic, your home is where you are at and a reasonably understanding of liability means you can be held responsible for the injuries a guest suffers while in your home. Your responsibility in any event isn't likely to absolve the property management company (or the property owner) of liability (or at least a duty to defend themselves) because no self-respecting plaintiff's attorney would let a potential pocket full of money get by him or her in the process of assigning liability. The good news is that if you have home insurance you have some amount of liability insurance to protect for the injuries that someone may suffer as a consequence of your negligence anywhere you are at. That includes the time share you have bought and including the property you have traded for in your time-share relationship. Now, none of the latter should be construed to make you liable for any event, only to clarify that you are indeed responsible for your actions and that includes the space you may be occupying as a temporary residence, whether a time share or a hotel room. How much liability you have depends on plenty of things we could speculate on but the answer above stands for itself.  Even if you are found to be free of liability, the cost of defense and getting to that point in time after an event is still costly and your liability coverage includes the benefit of defense against these allegations. Liability is expensive to defend and costly to pay for in the absence of insurance so a basic understanding of the tort of negligence and your duties is all I intend to imply in the latter answer.]]></content:encoded>
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		<title>Answer on Can An Apartment Complex Require You To Have Renters Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/renters-insurance/can-an-apartment-complex-require-you-to-have-renters-insurance#answer_27381</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 24 Aug 2015 13:49:16 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/renters-insurance/can-an-apartment-complex-require-you-to-have-renters-insurance#answer_27381</guid>
		<description><![CDATA[In our &quot;perfect outcome&quot; world the owner of the rental property has every right to avoid assuming responsibility for the negligence of its tenants. Too often plaintiff&#039;s lawyers seek deeper pockets for injuries real and alleged and when the tenant is found to be uncollectible the owner often gets stuck with the bill when a judgment needs to be paid. The property owner (landlord) is acting in a reasonable and prudent manner when they insist upon a tenant taking responsibility for their own liability and insurance needs by requiring evidence of insurance. If they didn&#039;t, it isn&#039;t unreasonable to presume that plaintiff counsel would argue that it is negligent on the party of the property owner not to expect or insist that a tenant have their own property and liability insurance as a condition of tenancy. The larger and more sophisticated the property owner the more likely they will have adopted risk management principles that require their tenants to have property and liability insurance as a condition of tenancy. It will become common practice in the years to come for almost every landlord to insist on evidence of insurance as a condition of tenancy. Financial prudence dictates the adoption of such a policy and I am aware of no law that prohibits a landlord from requiring proof of insurance coverage. And I go back to the original statement and assert that no landlord is wise to assume the responsibility for insuring the risk of the tenant and this is a risk that is clearly the responsibility of the tenant regardless of where they call home.]]></description>
		<content:encoded><![CDATA[In our "perfect outcome" world the owner of the rental property has every right to avoid assuming responsibility for the negligence of its tenants. Too often plaintiff's lawyers seek deeper pockets for injuries real and alleged and when the tenant is found to be uncollectible the owner often gets stuck with the bill when a judgment needs to be paid. The property owner (landlord) is acting in a reasonable and prudent manner when they insist upon a tenant taking responsibility for their own liability and insurance needs by requiring evidence of insurance. If they didn't, it isn't unreasonable to presume that plaintiff counsel would argue that it is negligent on the party of the property owner not to expect or insist that a tenant have their own property and liability insurance as a condition of tenancy. The larger and more sophisticated the property owner the more likely they will have adopted risk management principles that require their tenants to have property and liability insurance as a condition of tenancy. It will become common practice in the years to come for almost every landlord to insist on evidence of insurance as a condition of tenancy. Financial prudence dictates the adoption of such a policy and I am aware of no law that prohibits a landlord from requiring proof of insurance coverage. And I go back to the original statement and assert that no landlord is wise to assume the responsibility for insuring the risk of the tenant and this is a risk that is clearly the responsibility of the tenant regardless of where they call home.]]></content:encoded>
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		<title>Answer on What Exactly Are Annuities? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/annuities/what-exactly-are-annuities-2#answer_27366</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Tue, 18 Aug 2015 17:31:19 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/annuities/what-exactly-are-annuities-2#answer_27366</guid>
		<description><![CDATA[An annuity is a systematic method of accumulation and liquidation of money that you desire to set aside for a later retirement.  In the accumulation phase you mostly make deposits into your account.  In the liquidation phase, you can take money from the account to provide a steady monthly income for a period of years, and even for the balance of your life. Annuities pay interest like a savings account. Unlike a bank savings account, you don&#039;t pay income tax on the interest gained until you begin liquidating your account with either a stream of payments of lump withdrawals. When interest you earn is not taxed today, it has a chance to compound and grow faster.  The government will get to tax your gain at a later time, when you start taking out the money.  Some annuities can be deducted from income on your 1040 tax statement and this also helps your retirement funds grow faster. These types of annuities are referred to as &quot;qualified annuities&quot; because the annuity meets the tax law qualifications that permit taking a reduction of income for the annuity deposit.  While there are lots of rules, if you go back to the start and realize that an annuity is nothing more than a method of accumulating money for retirement, and also a method of distributing money from the account in retirement, you get most of what an annuity really is.  Good luck.]]></description>
		<content:encoded><![CDATA[An annuity is a systematic method of accumulation and liquidation of money that you desire to set aside for a later retirement.  In the accumulation phase you mostly make deposits into your account.  In the liquidation phase, you can take money from the account to provide a steady monthly income for a period of years, and even for the balance of your life. Annuities pay interest like a savings account. Unlike a bank savings account, you don't pay income tax on the interest gained until you begin liquidating your account with either a stream of payments of lump withdrawals. When interest you earn is not taxed today, it has a chance to compound and grow faster.  The government will get to tax your gain at a later time, when you start taking out the money.  Some annuities can be deducted from income on your 1040 tax statement and this also helps your retirement funds grow faster. These types of annuities are referred to as "qualified annuities" because the annuity meets the tax law qualifications that permit taking a reduction of income for the annuity deposit.  While there are lots of rules, if you go back to the start and realize that an annuity is nothing more than a method of accumulating money for retirement, and also a method of distributing money from the account in retirement, you get most of what an annuity really is.  Good luck.]]></content:encoded>
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		<title>Answer on Does Auto Insurance Need Your Social Security Number? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/does-auto-insurance-need-your-social-security-number#answer_27263</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 23 Jul 2015 17:07:37 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/does-auto-insurance-need-your-social-security-number#answer_27263</guid>
		<description><![CDATA[The social security number is a necessary method of identifying you and your record. Most insurers use this number to zero in on your identity. Unfortunately, your social security number is used to identify you and your record to insurance carriers, and just about every other kind of business that is granting credit or coverage. Wouldn&#039;t it be nice to be able to protect this one vital bit of information and have another identifying number we could use?  But I digress...  But, as identifiers go, the social security number is probably the best current way for your creditors and insurance companies to make sure you are really you. Insurance is making a bigger and bigger use of credit base underwriting and pricing every year and most carriers use credit to one extent or another in insurance eligibility and pricing. Companies are also using vast data base records of claims and driving history that are often cataloged by your address, your name, your spouse, former addresses, and even the prior owners and subsequent owners of cars you have once owned and insured. With all the potential for confusion, your social security number is one unique bit of information that isn&#039;t easily duplicated in these claims and records databases. So, in that one way, your social security number helps keep you from being lumped together with others who may have a similar name, owned your car, or lived in the same house or apartment. Your social security number has been tied to credit reports and your borrowing for decades so insurance companies use this number to be as certain as possible they are looking at your record and not someone with a similar name. While the social security number has now been exploited for way to many reasons of identification, it is good that you still have one way to separate yourself from others with similarities that can cause confusion in underwriting and pricing your insurance and that is a good thing.  Hope this helps.]]></description>
		<content:encoded><![CDATA[The social security number is a necessary method of identifying you and your record. Most insurers use this number to zero in on your identity. Unfortunately, your social security number is used to identify you and your record to insurance carriers, and just about every other kind of business that is granting credit or coverage. Wouldn't it be nice to be able to protect this one vital bit of information and have another identifying number we could use?  But I digress...  But, as identifiers go, the social security number is probably the best current way for your creditors and insurance companies to make sure you are really you. Insurance is making a bigger and bigger use of credit base underwriting and pricing every year and most carriers use credit to one extent or another in insurance eligibility and pricing. Companies are also using vast data base records of claims and driving history that are often cataloged by your address, your name, your spouse, former addresses, and even the prior owners and subsequent owners of cars you have once owned and insured. With all the potential for confusion, your social security number is one unique bit of information that isn't easily duplicated in these claims and records databases. So, in that one way, your social security number helps keep you from being lumped together with others who may have a similar name, owned your car, or lived in the same house or apartment. Your social security number has been tied to credit reports and your borrowing for decades so insurance companies use this number to be as certain as possible they are looking at your record and not someone with a similar name. While the social security number has now been exploited for way to many reasons of identification, it is good that you still have one way to separate yourself from others with similarities that can cause confusion in underwriting and pricing your insurance and that is a good thing.  Hope this helps.]]></content:encoded>
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		<title>Answer on What Is Renters Dwelling Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/renters-insurance/what-is-renters-dwelling-insurance#answer_27257</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Wed, 22 Jul 2015 16:27:29 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/renters-insurance/what-is-renters-dwelling-insurance#answer_27257</guid>
		<description><![CDATA[Renter&#039;s dwelling insurance or rental dwelling insurance?  Renters insurance, or dwelling insurance?  There are two directions to travel on this question.  First, renters insurance is coverage for a non-owner occupant of an apartment or residential dwelling. We often use the term &quot;tenant&quot; or &quot;renter&quot; to describe this person or family.  Since the tenant doesn&#039;t own the structures the primary objective under a tenant or renters policy is to cover their personal property, additional living expenses after a loss we insure, and personal liability. A Renters Insurance Policy (Or Tenant Insurance Policy) is one of the various forms of Homeowner Insurance that has been modified to reflect the unique needs of a non-owner occupant of residential property.  

Rental dwelling insurance is coverage purchased by the owner of the residential dwelling to protect their interest in an apartment or dwelling occupied by someone else. It isn&#039;t required that the property be non-owner occupied under such dwelling policies, but typically, this is the case since most homeowners insurance policies afford a much better coverage and premium value than a dwelling policy.  Dwelling policies can be used in a number of circumstances from those where the owner occupies the property, to those where a non-owner occupant resides in the home. A dwelling type policy is frequently used to provide coverage for a dwelling in the &quot;course of construction&quot; or when it is undergoing significant renovation. When used in this way it is not uncommon for the policy to be referred to as &quot;builders risk&quot; insurance. This type of policy is sold to the owners of property and not to builders. Builders can obtain coverage for their exposures to loss in these cases from a commercial liability and property policy they maintain for their operations. The builder would have only a financial interest in the property to the extent of their unpaid work and material so some form of policy coverage or endorsement that extends the value of property and services they have installed in such a dwelling would be the best method of providing coverage.  After all, we always have to be concerned with the &quot;insurable interest&quot; and the only one with a true interest to the totality of loss would be the property owner and not a builder or contractor.]]></description>
		<content:encoded><![CDATA[Renter's dwelling insurance or rental dwelling insurance?  Renters insurance, or dwelling insurance?  There are two directions to travel on this question.  First, renters insurance is coverage for a non-owner occupant of an apartment or residential dwelling. We often use the term "tenant" or "renter" to describe this person or family.  Since the tenant doesn't own the structures the primary objective under a tenant or renters policy is to cover their personal property, additional living expenses after a loss we insure, and personal liability. A Renters Insurance Policy (Or Tenant Insurance Policy) is one of the various forms of Homeowner Insurance that has been modified to reflect the unique needs of a non-owner occupant of residential property.  

Rental dwelling insurance is coverage purchased by the owner of the residential dwelling to protect their interest in an apartment or dwelling occupied by someone else. It isn't required that the property be non-owner occupied under such dwelling policies, but typically, this is the case since most homeowners insurance policies afford a much better coverage and premium value than a dwelling policy.  Dwelling policies can be used in a number of circumstances from those where the owner occupies the property, to those where a non-owner occupant resides in the home. A dwelling type policy is frequently used to provide coverage for a dwelling in the "course of construction" or when it is undergoing significant renovation. When used in this way it is not uncommon for the policy to be referred to as "builders risk" insurance. This type of policy is sold to the owners of property and not to builders. Builders can obtain coverage for their exposures to loss in these cases from a commercial liability and property policy they maintain for their operations. The builder would have only a financial interest in the property to the extent of their unpaid work and material so some form of policy coverage or endorsement that extends the value of property and services they have installed in such a dwelling would be the best method of providing coverage.  After all, we always have to be concerned with the "insurable interest" and the only one with a true interest to the totality of loss would be the property owner and not a builder or contractor.]]></content:encoded>
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		<title>Answer on Does Owning A Trampoline Affect Home Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/does-owning-a-trampoline-affect-home-insurance#answer_27254</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Wed, 22 Jul 2015 16:07:00 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/does-owning-a-trampoline-affect-home-insurance#answer_27254</guid>
		<description><![CDATA[Trampolines are an attractive nuisance not unlike the pond on the back forty, They are the source of a lot of additional liability exposure to the policy and the homeowner. The biggest reason that liability increases is because more than one child or person is one the equipment at a time. Most families with a trampoline haven&#039;t established risk-based rules for use and enjoyment and so what looks to be a fun and exciting play thing, becomes a hazard teeming with potential to cause great bodily harm. Insurance companies know from experience that trampolines cause losses and are expensive to insure because the injuries can become catastrophic. Broken bones are one thing. A broken neck with paralysis is completely another but well within the outcomes on a trampoline. Add to the trampoline an almost complete lack of training or instruction on the correct methods of use (and the lack of appropriate rules for use), and we find the trampoline becomes similar to a loaded gun just waiting for curious hands with just as much potential to destroy a healthful life. Another issue that crops us is the degradation of the platform fabric since it is exposed to weather and sunlight. People have been known to bust through the platform because it became degraded due to the sun and weather effects.  Bones get broke hitting the found and frame members below the deck.  In my experience, most companies don&#039;t want anything to do with insuring a home with a trampoline. A relative few don&#039;t charge additional premium and don&#039;t restrict the presence of a trampoline. Others still will permit a trampoline when it is is present for coverage at an additional charge. One carrier we represent charges an additional $75 annually for the trampoline, requires the fences to be installed (most trampolines come with them), and they won&#039;t provide insurance on the home unless the trampoline is also included in coverage. All in all, you don&#039;t simply have the choice to not insure the trampoline since the mere act of having one dramatically increases the chances of having a loss!  That said, trampolines can be enjoyed safely but it requires careful and near constant monitoring by the responsible adults, the establishment of rules for use, the ability to protect the equipment from non-invited use by neighbors when the owner or their children are not using the equipment, and inspection periodically for signs of degradation and normal wear and tear. Additionally, basic skills should be discussed, taught and understood, limits should be placed on the behavior that is allowed on the trampoline, and responsible adults should be willing to stop all play when careful control cannot be maintained.  Many injuries occur when the parents are not paying attention or aware from the home.  Let&#039;s face it, no one wants to be sued for the liability that may arise out of an injury on a trampoline and no one wants to deal with the often catastrophic injuries that can occur to your children or the neighbors. These latter comments and insight are a good foundation for understanding why an insurance company doesn&#039;t like trampolines and why homeowner insurance is often negatively influenced when they are present on the property.]]></description>
		<content:encoded><![CDATA[Trampolines are an attractive nuisance not unlike the pond on the back forty, They are the source of a lot of additional liability exposure to the policy and the homeowner. The biggest reason that liability increases is because more than one child or person is one the equipment at a time. Most families with a trampoline haven't established risk-based rules for use and enjoyment and so what looks to be a fun and exciting play thing, becomes a hazard teeming with potential to cause great bodily harm. Insurance companies know from experience that trampolines cause losses and are expensive to insure because the injuries can become catastrophic. Broken bones are one thing. A broken neck with paralysis is completely another but well within the outcomes on a trampoline. Add to the trampoline an almost complete lack of training or instruction on the correct methods of use (and the lack of appropriate rules for use), and we find the trampoline becomes similar to a loaded gun just waiting for curious hands with just as much potential to destroy a healthful life. Another issue that crops us is the degradation of the platform fabric since it is exposed to weather and sunlight. People have been known to bust through the platform because it became degraded due to the sun and weather effects.  Bones get broke hitting the found and frame members below the deck.  In my experience, most companies don't want anything to do with insuring a home with a trampoline. A relative few don't charge additional premium and don't restrict the presence of a trampoline. Others still will permit a trampoline when it is is present for coverage at an additional charge. One carrier we represent charges an additional $75 annually for the trampoline, requires the fences to be installed (most trampolines come with them), and they won't provide insurance on the home unless the trampoline is also included in coverage. All in all, you don't simply have the choice to not insure the trampoline since the mere act of having one dramatically increases the chances of having a loss!  That said, trampolines can be enjoyed safely but it requires careful and near constant monitoring by the responsible adults, the establishment of rules for use, the ability to protect the equipment from non-invited use by neighbors when the owner or their children are not using the equipment, and inspection periodically for signs of degradation and normal wear and tear. Additionally, basic skills should be discussed, taught and understood, limits should be placed on the behavior that is allowed on the trampoline, and responsible adults should be willing to stop all play when careful control cannot be maintained.  Many injuries occur when the parents are not paying attention or aware from the home.  Let's face it, no one wants to be sued for the liability that may arise out of an injury on a trampoline and no one wants to deal with the often catastrophic injuries that can occur to your children or the neighbors. These latter comments and insight are a good foundation for understanding why an insurance company doesn't like trampolines and why homeowner insurance is often negatively influenced when they are present on the property.]]></content:encoded>
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		<title>Answer on Is A Disability Insurance Payment Taxable? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/disability-insurance/is-a-disability-insurance-payment-taxable#answer_27226</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 16 Jul 2015 17:09:12 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/disability-insurance/is-a-disability-insurance-payment-taxable#answer_27226</guid>
		<description><![CDATA[Disability insurance you purchase without the financial contribution of your employer towards the premium expense of individual disability insurance will generally be free of income taxation. This tax treatment results from the circumstances.  First, the money used to pay premiums are &quot;after-tax&quot; dollars.  In other words, you already paid tax on the money used to pay the disability premiums when it was earned as income.  Second, neither an employer or business will take a deduction on their tax returns for the payments made to provide the insurance to you.  These two things make the income earned under a personal, individual disability policy free of income tax on the benefits.  As a general rule, if a business pays for the a portion of the premium the benefit is probably taxable to some extent even when you contribute.  The amount of the benefit that is taxable will be determined by the ratio of the total premium paid, compared against the premium amounts paid by the business and the individual.  If the benefit is payable to a business the income is probably taxable. Corporate (or business) owned disability insurance can be designed to provide income or overhead expense protection.  Overhead expense protection permits the deduction of cost on tax forms but the income is taxable.  There is also the possibility that disability income coverage is used in a buy-sell agreement.  When the benefit is paid to a business, as a general rule, the benefit is taxable.  As in most instances, this general answer cannot begin to address the variety of complicating circumstances so specific answers are best for specific situations.]]></description>
		<content:encoded><![CDATA[Disability insurance you purchase without the financial contribution of your employer towards the premium expense of individual disability insurance will generally be free of income taxation. This tax treatment results from the circumstances.  First, the money used to pay premiums are "after-tax" dollars.  In other words, you already paid tax on the money used to pay the disability premiums when it was earned as income.  Second, neither an employer or business will take a deduction on their tax returns for the payments made to provide the insurance to you.  These two things make the income earned under a personal, individual disability policy free of income tax on the benefits.  As a general rule, if a business pays for the a portion of the premium the benefit is probably taxable to some extent even when you contribute.  The amount of the benefit that is taxable will be determined by the ratio of the total premium paid, compared against the premium amounts paid by the business and the individual.  If the benefit is payable to a business the income is probably taxable. Corporate (or business) owned disability insurance can be designed to provide income or overhead expense protection.  Overhead expense protection permits the deduction of cost on tax forms but the income is taxable.  There is also the possibility that disability income coverage is used in a buy-sell agreement.  When the benefit is paid to a business, as a general rule, the benefit is taxable.  As in most instances, this general answer cannot begin to address the variety of complicating circumstances so specific answers are best for specific situations.]]></content:encoded>
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		<title>Answer on Is it possible to acquire a new General Liability Insurance policy for a Small Business which will cover work that your firm has already recently completed without coverage? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/possible-acquire-new-general-liability-insurance-policy-small-business-will-cover-work-firm-already-recently-completed-without-coverage#answer_27194</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 09 Jul 2015 17:07:55 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/possible-acquire-new-general-liability-insurance-policy-small-business-will-cover-work-firm-already-recently-completed-without-coverage#answer_27194</guid>
		<description><![CDATA[The vast bulk of general liability insurance coverage written for business is provided on an &quot;occurrence&quot; coverage form. The occurrence form of coverage is triggered by the &quot;occurrence&quot; of an event that causes a loss that is neither intended or expected on the part of the insured.  If the event occurs during the policy period, it is covered without much limitation to when it is reported. On the other hand, another form of coverage is written for business that is referred to as a &quot;claims made&quot; form of coverage. Again, the trigger is the loss but now, rather than determining whether the loss occurred during the policy period, the question is when the claim first becomes known to the insured and when the claim is first made with the carrier. A claim on this form of coverage doesn&#039;t necessarily have to be made during the dates of the policy coverage for coverage to available for the loss.  Claims made coverage is usually written for doctors, lawyers, insurance agents, and others where the advice and professional interpretation and expertise is the product covered. Claims made policies are designed to keep only the current policy term the only limit of liability exposed to loss. Occurrence policies have often had years and years of coverage limits stacked upon the other to create large pots of money to settle losses that may have occurred through many years. Language was added to occurrence policies to identify that a loss includes &quot;continuous and repeated exposures to the same conditions&quot; to help connect the chain of events in an accident to avoid having each event serve to be a separate loss.]]></description>
		<content:encoded><![CDATA[The vast bulk of general liability insurance coverage written for business is provided on an "occurrence" coverage form. The occurrence form of coverage is triggered by the "occurrence" of an event that causes a loss that is neither intended or expected on the part of the insured.  If the event occurs during the policy period, it is covered without much limitation to when it is reported. On the other hand, another form of coverage is written for business that is referred to as a "claims made" form of coverage. Again, the trigger is the loss but now, rather than determining whether the loss occurred during the policy period, the question is when the claim first becomes known to the insured and when the claim is first made with the carrier. A claim on this form of coverage doesn't necessarily have to be made during the dates of the policy coverage for coverage to available for the loss.  Claims made coverage is usually written for doctors, lawyers, insurance agents, and others where the advice and professional interpretation and expertise is the product covered. Claims made policies are designed to keep only the current policy term the only limit of liability exposed to loss. Occurrence policies have often had years and years of coverage limits stacked upon the other to create large pots of money to settle losses that may have occurred through many years. Language was added to occurrence policies to identify that a loss includes "continuous and repeated exposures to the same conditions" to help connect the chain of events in an accident to avoid having each event serve to be a separate loss.]]></content:encoded>
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		<title>Answer on Are business liabilty insurance polices taxed on the premium price by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/business-liabilty-insurance-polices-taxed-premium-price#answer_27193</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 09 Jul 2015 16:33:45 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/business-liabilty-insurance-polices-taxed-premium-price#answer_27193</guid>
		<description><![CDATA[Premium taxes are generally never seen on a policy declaration page unless the carrier is a &quot;surplus lines&quot; insurance company.Surplus lines coverage is provided by a special agency type referred to as a &quot;surplus lines agent&quot; who acts as a wholesaler to retail agencies. The help non-admitted carriers manage their underwriting and administrative issues for the states where they except risk.  The surplus lines agent deals with carriers who are not admitted to do business in a given state but they can also work with admitted carriers. The term &quot;admitted&quot; refers to the licensing process and a &quot;non-admitted&quot; carrier has not sought the approval of the state insurance department to provide insurance to residents and businesses of the state. When coverage is written by the non-admitted carrier, a tax is charged on the premium and fees charged by the surplus lines agency.  That tax rate is 5% in Ohio. The surplus lines agent then remits the tax to the state where the risk is located. That is a part of their services. And, in answering the final part of your question, usually surplus lines tax applies to business risk but can also apply to personal lines.  By the way, a non-admitted carrier is not included in the protections of the carrier insolvency protections of state statute so this is important to keep in mind when doing business with non-admitted carriers. Not being an &quot;admitted&quot; carrier in a state is not an indication of the solvency of the carrier or its ability to pay claims but it is important to mention that the protections of the law in your state may not help if a non-admitted carrier goes bankrupt in the same way as you have protection (in many instances) when an admitted carrier goes bankrup.]]></description>
		<content:encoded><![CDATA[Premium taxes are generally never seen on a policy declaration page unless the carrier is a "surplus lines" insurance company.Surplus lines coverage is provided by a special agency type referred to as a "surplus lines agent" who acts as a wholesaler to retail agencies. The help non-admitted carriers manage their underwriting and administrative issues for the states where they except risk.  The surplus lines agent deals with carriers who are not admitted to do business in a given state but they can also work with admitted carriers. The term "admitted" refers to the licensing process and a "non-admitted" carrier has not sought the approval of the state insurance department to provide insurance to residents and businesses of the state. When coverage is written by the non-admitted carrier, a tax is charged on the premium and fees charged by the surplus lines agency.  That tax rate is 5% in Ohio. The surplus lines agent then remits the tax to the state where the risk is located. That is a part of their services. And, in answering the final part of your question, usually surplus lines tax applies to business risk but can also apply to personal lines.  By the way, a non-admitted carrier is not included in the protections of the carrier insolvency protections of state statute so this is important to keep in mind when doing business with non-admitted carriers. Not being an "admitted" carrier in a state is not an indication of the solvency of the carrier or its ability to pay claims but it is important to mention that the protections of the law in your state may not help if a non-admitted carrier goes bankrupt in the same way as you have protection (in many instances) when an admitted carrier goes bankrup.]]></content:encoded>
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		<title>Answer on Peronsal liability insurance for author of apps/source code? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/peronsal-liability-insurance-author-appssource-code#answer_27192</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Thu, 09 Jul 2015 16:13:44 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/peronsal-liability-insurance-author-appssource-code#answer_27192</guid>
		<description><![CDATA[With all due respect to the answer given by the first insurance professional to answer this question, there are two different coverage angles to take into account.  Let&#039;s tackle the first issue and that is of the professional or product liability. A homeowner policy will not extend itself to cover the liability that arises our of the professional services to write software or machine code that is either given away or incorporated into a commercial product offered to others. In the event of a loss of lawsuit I don&#039;t think you will find coverage and I think if a claim were to be presented a &quot;reservation of rights&quot; letter will be issued upon notification of a claim so the carrier can explore the issue prior to rejecting the loss as &quot;professional liability&quot; that is not covered in a liability section of a home insurance policy. On the other hand, many companies permit the use of the home for office related tasks and the liability exposure for pedestrian traffic onto the property and/or into the house will probably be covered when the avocation is merely a hobby. Usually the presence of this additional exposures are required to be admitted to the carrier. That said, all claims issues are ultimately compared against coverage terms and language and no one should rely on this general advice as anything other than a reminder to consult with your insurance agent for the best answer.  And finally, I am aware of no coverage that is available for the hobby coder to add to a home insurance policy. It would be interesting to know if you actually work in the computer software business in your day to day paid work.]]></description>
		<content:encoded><![CDATA[With all due respect to the answer given by the first insurance professional to answer this question, there are two different coverage angles to take into account.  Let's tackle the first issue and that is of the professional or product liability. A homeowner policy will not extend itself to cover the liability that arises our of the professional services to write software or machine code that is either given away or incorporated into a commercial product offered to others. In the event of a loss of lawsuit I don't think you will find coverage and I think if a claim were to be presented a "reservation of rights" letter will be issued upon notification of a claim so the carrier can explore the issue prior to rejecting the loss as "professional liability" that is not covered in a liability section of a home insurance policy. On the other hand, many companies permit the use of the home for office related tasks and the liability exposure for pedestrian traffic onto the property and/or into the house will probably be covered when the avocation is merely a hobby. Usually the presence of this additional exposures are required to be admitted to the carrier. That said, all claims issues are ultimately compared against coverage terms and language and no one should rely on this general advice as anything other than a reminder to consult with your insurance agent for the best answer.  And finally, I am aware of no coverage that is available for the hobby coder to add to a home insurance policy. It would be interesting to know if you actually work in the computer software business in your day to day paid work.]]></content:encoded>
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		<title>Answer on Do I Need A Police Report To Recover My Deductible Through Subrogation? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/need-police-report-recover-deductible-subrogation#answer_27182</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 19:26:27 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/need-police-report-recover-deductible-subrogation#answer_27182</guid>
		<description><![CDATA[Claims are paid every day without documents like an accident report. Insurance carriers don&#039;t require a court order to make settlement payments either when the details are clear. It just depends upon the circumstances. If the claims involves any form of claim of injury or complaints of pain, the carrier isn&#039;t likely to make a payment without knowing all the details including those on a police report. When the facts are clear a deductible reimbursement shouldn&#039;t be any issue absent anything to aggravate the claim.  I am witness to companies paying after thoroughly investigating losses when personal injuries have occurred to so details matter. Now, when agreement can be made, when the agreement is reasonable and fair as to terms of settlement and amount, and when there is little dispute to the facts, a police report is not going to change the agreement in which the other party is going to be asked to relinquish any further right to claim for additional compensation.  If that can&#039;t be obtained, or there is serious question about other involved parties, the cautious &quot;wait-and-see&quot; attitude prevails and then an effort is made to fully document the file prior to making any payments.]]></description>
		<content:encoded><![CDATA[Claims are paid every day without documents like an accident report. Insurance carriers don't require a court order to make settlement payments either when the details are clear. It just depends upon the circumstances. If the claims involves any form of claim of injury or complaints of pain, the carrier isn't likely to make a payment without knowing all the details including those on a police report. When the facts are clear a deductible reimbursement shouldn't be any issue absent anything to aggravate the claim.  I am witness to companies paying after thoroughly investigating losses when personal injuries have occurred to so details matter. Now, when agreement can be made, when the agreement is reasonable and fair as to terms of settlement and amount, and when there is little dispute to the facts, a police report is not going to change the agreement in which the other party is going to be asked to relinquish any further right to claim for additional compensation.  If that can't be obtained, or there is serious question about other involved parties, the cautious "wait-and-see" attitude prevails and then an effort is made to fully document the file prior to making any payments.]]></content:encoded>
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		<title>Answer on Should Our 18 Year Old Son Have His Own Car Insurance Policy? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/18-year-old-son-car-insurance-policy#answer_27181</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 19:09:34 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/18-year-old-son-car-insurance-policy#answer_27181</guid>
		<description><![CDATA[I love CPA&#039;s.  They give great accounting advice and some of them even know other things.  But the &quot;minimum limits&quot; advice defies his training in some important ways. What your son lacks in &quot;assets&quot; he more than makes up for in terms of &quot;potential&quot;.  What I mean here is that he may not have it now, but due to his young age, he&#039;ll have a long time to earn and pay. Even though he is only 18 does not mean that he cannot be responsible for an injury or death, or damage to property, and be subjected to an order of the court to garnishee his wage to make reimbursement to those who were injured, killed, or had property damaged.  

Now, should have have his own insurance?  Assuming he owns the car, he probably needs his own insurance.  Staying in the household under household coverage is also OK but some insurers concern themselves with the owner of the car being different than the insured on the policy so proceed with caution when the vehicle is not actually owned by the policyholder.  

As a practical matter, the discounts that you might enjoy are lost to the child in many cases when they have their own policy.  Some companies will extend multi-policy discounts to children of the policy owner.  Some discounts don&#039;t come through this connection, however.  I like kids learning the responsibility of maintaining their own insurance.  It gets the loss off the parents record, for one.  Parents can help subsidize the cost if they want and help provide this as a reward for good outcomes on something else.  All things said and done, I like responsible children on their own policies but deal with young drivers both on and off the parents policies so it comes down to personal preference and whether you are dealing with issues that poison the whole policy because of the young driver, or not, in many cases.]]></description>
		<content:encoded><![CDATA[I love CPA's.  They give great accounting advice and some of them even know other things.  But the "minimum limits" advice defies his training in some important ways. What your son lacks in "assets" he more than makes up for in terms of "potential".  What I mean here is that he may not have it now, but due to his young age, he'll have a long time to earn and pay. Even though he is only 18 does not mean that he cannot be responsible for an injury or death, or damage to property, and be subjected to an order of the court to garnishee his wage to make reimbursement to those who were injured, killed, or had property damaged.  

Now, should have have his own insurance?  Assuming he owns the car, he probably needs his own insurance.  Staying in the household under household coverage is also OK but some insurers concern themselves with the owner of the car being different than the insured on the policy so proceed with caution when the vehicle is not actually owned by the policyholder.  

As a practical matter, the discounts that you might enjoy are lost to the child in many cases when they have their own policy.  Some companies will extend multi-policy discounts to children of the policy owner.  Some discounts don't come through this connection, however.  I like kids learning the responsibility of maintaining their own insurance.  It gets the loss off the parents record, for one.  Parents can help subsidize the cost if they want and help provide this as a reward for good outcomes on something else.  All things said and done, I like responsible children on their own policies but deal with young drivers both on and off the parents policies so it comes down to personal preference and whether you are dealing with issues that poison the whole policy because of the young driver, or not, in many cases.]]></content:encoded>
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		<title>Answer on Should Gun Owners Be Required To Carry Liability Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/other-insurance/should-gun-owners-be-required-to-carry-liability-insurance#answer_27180</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 18:57:37 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/other-insurance/should-gun-owners-be-required-to-carry-liability-insurance#answer_27180</guid>
		<description><![CDATA[From the practical point of view only, the answer is no (but even this answer can&#039;t be separated from the politics as much as I would like). I suspect that your question is hinged in some political viewpoint so I will avoid the political implications. Now, should people insure for the liability they have the potential to create?  In that case, I say YES.  It is common sense from how I think.  That said, however, most gun owners I know and have insured during my career are law-abiding, conscientious citizens and they buy liability insurance that will likely apply in one extent or another to non-intentional events with a gun and these policies will likely pay the amounts and events permissible by policy language. I know of no policy language in personal liability policies that prohibits paying for injuries caused to another while hunting, or of damage to the property of others caused by non-intentional and unintended discharge of the gun. However, I would hazard to say that it wouldn&#039;t be long before carriers would react to reduce and eliminate their exposure if our politics insisted upon coverage or attempted to mandate coverage.  It is well understood that the gun won&#039;t shoot without the act of some human to make it work.  (Except for Google) Cars won&#039;t drive without drivers.  Legal, responsible gun owners are not the people we read about in the news.  Note:  Applying this answer to a business or commercial enterprise is unwise and my answer was directed towards a personal application.  Different answers apply in the case of a business out of necessity.]]></description>
		<content:encoded><![CDATA[From the practical point of view only, the answer is no (but even this answer can't be separated from the politics as much as I would like). I suspect that your question is hinged in some political viewpoint so I will avoid the political implications. Now, should people insure for the liability they have the potential to create?  In that case, I say YES.  It is common sense from how I think.  That said, however, most gun owners I know and have insured during my career are law-abiding, conscientious citizens and they buy liability insurance that will likely apply in one extent or another to non-intentional events with a gun and these policies will likely pay the amounts and events permissible by policy language. I know of no policy language in personal liability policies that prohibits paying for injuries caused to another while hunting, or of damage to the property of others caused by non-intentional and unintended discharge of the gun. However, I would hazard to say that it wouldn't be long before carriers would react to reduce and eliminate their exposure if our politics insisted upon coverage or attempted to mandate coverage.  It is well understood that the gun won't shoot without the act of some human to make it work.  (Except for Google) Cars won't drive without drivers.  Legal, responsible gun owners are not the people we read about in the news.  Note:  Applying this answer to a business or commercial enterprise is unwise and my answer was directed towards a personal application.  Different answers apply in the case of a business out of necessity.]]></content:encoded>
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		<title>Answer on My License Was Suspended And Has Been Recently Restored.  Will This Affect Being Added To My Company&#8217;s Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/license-suspended-recently-restored-will-affect-added-companys-insurance#answer_27179</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 18:42:10 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/license-suspended-recently-restored-will-affect-added-companys-insurance#answer_27179</guid>
		<description><![CDATA[After we deal with the reason for the suspension not being citations and accidents, then we can look at the other possible complications.  Today, computerized records and coding make the suspension a matter of record.  Why were you suspended?  In many jurisdictions you can have your driving record suspended for failing to pay child support, or failing to pay a parking violation. The shortest answer is that the presence of a &quot;suspension&quot; on your MVR is an issue that can impact your insurability in the eyes of the employer and their insurance carrier.  If the suspension can be clearly tied to a non-driving activity, you may be able to prevail with the employer and their insurance carrier and have the presence of the &quot;suspension&quot; overlooked.  If your suspension is even remotely tied to driving activities, then this reflects on behavior and accountability and will have an impact on your employer and you as a driver on the company insurance coverage.  Those impacts can range from a significant surcharge to being ineligible for coverage.  The choice doesn&#039;t belong to the company either.  The carrier will need to be convinced your &quot;suspension&quot; isn&#039;t as relevant as it may otherwise appear. That is an uphill climb in most instances.]]></description>
		<content:encoded><![CDATA[After we deal with the reason for the suspension not being citations and accidents, then we can look at the other possible complications.  Today, computerized records and coding make the suspension a matter of record.  Why were you suspended?  In many jurisdictions you can have your driving record suspended for failing to pay child support, or failing to pay a parking violation. The shortest answer is that the presence of a "suspension" on your MVR is an issue that can impact your insurability in the eyes of the employer and their insurance carrier.  If the suspension can be clearly tied to a non-driving activity, you may be able to prevail with the employer and their insurance carrier and have the presence of the "suspension" overlooked.  If your suspension is even remotely tied to driving activities, then this reflects on behavior and accountability and will have an impact on your employer and you as a driver on the company insurance coverage.  Those impacts can range from a significant surcharge to being ineligible for coverage.  The choice doesn't belong to the company either.  The carrier will need to be convinced your "suspension" isn't as relevant as it may otherwise appear. That is an uphill climb in most instances.]]></content:encoded>
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		<title>Answer on Can Health Insurance Companies Legally Cancel You With No Explanation? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/health-insurance/can-health-insurance-companies-legally-cancel-no-explanation#answer_27178</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 18:34:33 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/health-insurance/can-health-insurance-companies-legally-cancel-no-explanation#answer_27178</guid>
		<description><![CDATA[This is probably one of the worst times in our economic history to be insured on an individual health insurance plan. The Affordable Care Act (ACA, aka Obamacare) is making it difficult to many health insurance plans to continue offering coverage. This is due in part to the host of new coverage mandates that some carriers do not think they can afford to offer.  In some others, the carrier could not rewrite the language to suit the new law and so they are scrapping them. In other instances the coverage of the plan does not meet the requirement of the law and so the company chooses to leave the marketplace. Every state has a law on how a carrier must treat a customer when non-renewal occurs.  If you are sure you haven&#039;t received such a notification as to &quot;reason&quot;, contact the carrier or your state insurance department and request an answer as to why you are receiving the notification.  Also, make sure the payment was made and credited so that you can rule non-payment off the list right away before contacting the state insurance regulatory authority.]]></description>
		<content:encoded><![CDATA[This is probably one of the worst times in our economic history to be insured on an individual health insurance plan. The Affordable Care Act (ACA, aka Obamacare) is making it difficult to many health insurance plans to continue offering coverage. This is due in part to the host of new coverage mandates that some carriers do not think they can afford to offer.  In some others, the carrier could not rewrite the language to suit the new law and so they are scrapping them. In other instances the coverage of the plan does not meet the requirement of the law and so the company chooses to leave the marketplace. Every state has a law on how a carrier must treat a customer when non-renewal occurs.  If you are sure you haven't received such a notification as to "reason", contact the carrier or your state insurance department and request an answer as to why you are receiving the notification.  Also, make sure the payment was made and credited so that you can rule non-payment off the list right away before contacting the state insurance regulatory authority.]]></content:encoded>
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		<title>Answer on Can I get life insurance with high blood pressure? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/can-i-get-life-insurance-with-high-blood-pressure#answer_27177</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 18:24:56 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/can-i-get-life-insurance-with-high-blood-pressure#answer_27177</guid>
		<description><![CDATA[Life insurance companies have taken the stance that if you can control your blood pressure using reasonable methods of medication or diet or otherwise, you can probably buy life insurance. It is more complicated than that but controlling your blood pressure is the starting point. You won&#039;t likely buy life insurance without an increased premium when you suffer from blood pressure control issues. If you can demonstrate a history of making and taking the steps necessary to return to a more normal state, underwriters will tend to issue coverage when you show a history of blood pressure maintenance in a normal range. The totality of your health picture is important.  If you are overweight with blood pressure issues, or smoking and have high blood pressure, have other medical conditions along with high blood pressure, for example, these other complications lowers the chance you&#039;ll get coverage or a rate you find attractive. WIth more and more underwriting looking at family history and genetics, and with solid medical success treating blood pressure, underwriters and carriers are more willing to write life insurance for clients with high blood pressure controlled to within striking distance of normal pressure levels.]]></description>
		<content:encoded><![CDATA[Life insurance companies have taken the stance that if you can control your blood pressure using reasonable methods of medication or diet or otherwise, you can probably buy life insurance. It is more complicated than that but controlling your blood pressure is the starting point. You won't likely buy life insurance without an increased premium when you suffer from blood pressure control issues. If you can demonstrate a history of making and taking the steps necessary to return to a more normal state, underwriters will tend to issue coverage when you show a history of blood pressure maintenance in a normal range. The totality of your health picture is important.  If you are overweight with blood pressure issues, or smoking and have high blood pressure, have other medical conditions along with high blood pressure, for example, these other complications lowers the chance you'll get coverage or a rate you find attractive. WIth more and more underwriting looking at family history and genetics, and with solid medical success treating blood pressure, underwriters and carriers are more willing to write life insurance for clients with high blood pressure controlled to within striking distance of normal pressure levels.]]></content:encoded>
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		<title>Answer on Does life insurance get taxed? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/does-life-insurance-get-taxed#answer_27176</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 17:48:17 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/does-life-insurance-get-taxed#answer_27176</guid>
		<description><![CDATA[Broad questions deserve broad answers and so the question as to taxation of life insurance benefits is this: Generally, life insurance benefits are paid free of income taxation when paid to individuals. But, there are exceptions and possible complications to this simple answer. One big potential problem is when the decedent is also the policy owner and the life insurance gets added to the value of an estate and then taxed in that way.  The IRS looks for incidents of ownership up three years prior to the death.  Also, life insurance paid to an estate that is subject to other forms of taxation may result in the life benefits being taxed as well so it isn&#039;t always a good idea to pay life benefits to an estate. Also, life insurance after the first $50,000 is taxed when premium was paid by the employer.  Life insurance you buy separately under group options are generally not taxed as income (provided all the rules are followed - see above).  Also, generally when a corporation pays the premium and the benefits are payable to the corporation, they can&#039;t write off the premium and collect the benefit free of income taxation. Under current law life insurance proceeds are only excludable up to the amounts of premium paid by the corpo in following with laws placed on the books in 2006. There is a whole host of rules that must be followed to avoid taxation but it is possible that life insurance can be paid to a corporation and avoid taxation. While most of us will not be subject to taxation on the life insurance benefit it pays to understand how these benefits become taxable. Then, it is reasonably easy to avoid these pitfalls. Don&#039;t also overlook the advice of a good agent and avoid the use of life insurance trusts to make sure the money moves to the beneficiary without taxation to the largest extent possible.]]></description>
		<content:encoded><![CDATA[Broad questions deserve broad answers and so the question as to taxation of life insurance benefits is this: Generally, life insurance benefits are paid free of income taxation when paid to individuals. But, there are exceptions and possible complications to this simple answer. One big potential problem is when the decedent is also the policy owner and the life insurance gets added to the value of an estate and then taxed in that way.  The IRS looks for incidents of ownership up three years prior to the death.  Also, life insurance paid to an estate that is subject to other forms of taxation may result in the life benefits being taxed as well so it isn't always a good idea to pay life benefits to an estate. Also, life insurance after the first $50,000 is taxed when premium was paid by the employer.  Life insurance you buy separately under group options are generally not taxed as income (provided all the rules are followed - see above).  Also, generally when a corporation pays the premium and the benefits are payable to the corporation, they can't write off the premium and collect the benefit free of income taxation. Under current law life insurance proceeds are only excludable up to the amounts of premium paid by the corpo in following with laws placed on the books in 2006. There is a whole host of rules that must be followed to avoid taxation but it is possible that life insurance can be paid to a corporation and avoid taxation. While most of us will not be subject to taxation on the life insurance benefit it pays to understand how these benefits become taxable. Then, it is reasonably easy to avoid these pitfalls. Don't also overlook the advice of a good agent and avoid the use of life insurance trusts to make sure the money moves to the beneficiary without taxation to the largest extent possible.]]></content:encoded>
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		<title>Answer on Do I Need Builders Risk Insurance To Purchase A Home Where We will Do Major Renovations Before Moving In? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/need-builders-risk-insurance-purchase-home-will-major-renovations-moving#answer_27175</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 17:14:18 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/need-builders-risk-insurance-purchase-home-will-major-renovations-moving#answer_27175</guid>
		<description><![CDATA[Many carriers will issue a homeowner policy form to cover a home construction project when it is new construction. You may also use a &quot;builders risk&quot; dwelling policy form when a homeowner policy isn&#039;t permitted. Most carriers offer one option or the other. If a homeowner policy is used the &quot;vacancy an unoccupancy&quot; provisions cannot be enforced during construction or renovation. Make sure to ask these questions of your agent or carrier to make sure coverage applies while under construction.

You should also control the insurance and you should not insure the builder in that process. The primary issue here is one of what we refer to as &quot;insurable interest&quot;.  Quite simply, you have the most to lose in a loss of the home and as a consequence you need to buy insurance to protect both your property interest and provide the lender with protection for the collateral (your dwelling) used in the loan.  The building or contractor may have an interest in installed materials up to the point they make a draw for the installations, but their interest ends at that point because they don&#039;t have an ownership position in the home. They can purchase &quot;installation&quot; coverage in their insurance package that will protect them for the value of their work installed and it is not expensive coverage so they should have this already.  Do not agree to assume responsibility for their liability either. If it is their construction site, it is their responsibility to maintain as best as possible to minimize the potential liability exposures.  That said, you should make sure to purchase and maintain personal liability for the property too for any potential risk of loss that would be excluded by the building in the site management.  Alternately, some carriers will amend current policies to add the new address for liability and then you wouldn&#039;t need to have this coverage added to your builders risk coverage.

By the way, the dwelling policy form permits (in many instances) the addition of endorsements that provide coverage for the value of material delivery to the site that you might have purchased.  These building materials are subject to theft and it is a good idea to know if the builder or you are responsible for materials delivered to the site.  Also, a dwelling policy should be created to the new total value of the improvements and original structure on either a replacement cost or actual cash value basis.  I suggest replacement cost.  Insurance to value is important even on this type of policy. Carriers using the dwelling form of coverage will pro-rate valuation to an average state of completion for premium calculation, but valuation at the time of loss is also tricky so keep good records so you can rebuild the entire structure after a major loss.

Cleaning up the concepts here also makes it necessary to make sure that the contractor has general liability and workers compensation insurance.  If they have vehicles that operate on the property you should also insist that they provide evidence of vehicle insurance.  In every instance above, you should be listed as an &quot;additional insured&quot; and &quot;certificate holder&quot; during the performance of the construction tasks. If possible, ask them to waive subrogation. Get evidence in writing. A commonly used form is the &quot;Acord 25&quot; Certification of Liability Insurance form and this is commonly provided ask for and get written evidence of coverage as noted above.]]></description>
		<content:encoded><![CDATA[Many carriers will issue a homeowner policy form to cover a home construction project when it is new construction. You may also use a "builders risk" dwelling policy form when a homeowner policy isn't permitted. Most carriers offer one option or the other. If a homeowner policy is used the "vacancy an unoccupancy" provisions cannot be enforced during construction or renovation. Make sure to ask these questions of your agent or carrier to make sure coverage applies while under construction.

You should also control the insurance and you should not insure the builder in that process. The primary issue here is one of what we refer to as "insurable interest".  Quite simply, you have the most to lose in a loss of the home and as a consequence you need to buy insurance to protect both your property interest and provide the lender with protection for the collateral (your dwelling) used in the loan.  The building or contractor may have an interest in installed materials up to the point they make a draw for the installations, but their interest ends at that point because they don't have an ownership position in the home. They can purchase "installation" coverage in their insurance package that will protect them for the value of their work installed and it is not expensive coverage so they should have this already.  Do not agree to assume responsibility for their liability either. If it is their construction site, it is their responsibility to maintain as best as possible to minimize the potential liability exposures.  That said, you should make sure to purchase and maintain personal liability for the property too for any potential risk of loss that would be excluded by the building in the site management.  Alternately, some carriers will amend current policies to add the new address for liability and then you wouldn't need to have this coverage added to your builders risk coverage.

By the way, the dwelling policy form permits (in many instances) the addition of endorsements that provide coverage for the value of material delivery to the site that you might have purchased.  These building materials are subject to theft and it is a good idea to know if the builder or you are responsible for materials delivered to the site.  Also, a dwelling policy should be created to the new total value of the improvements and original structure on either a replacement cost or actual cash value basis.  I suggest replacement cost.  Insurance to value is important even on this type of policy. Carriers using the dwelling form of coverage will pro-rate valuation to an average state of completion for premium calculation, but valuation at the time of loss is also tricky so keep good records so you can rebuild the entire structure after a major loss.

Cleaning up the concepts here also makes it necessary to make sure that the contractor has general liability and workers compensation insurance.  If they have vehicles that operate on the property you should also insist that they provide evidence of vehicle insurance.  In every instance above, you should be listed as an "additional insured" and "certificate holder" during the performance of the construction tasks. If possible, ask them to waive subrogation. Get evidence in writing. A commonly used form is the "Acord 25" Certification of Liability Insurance form and this is commonly provided ask for and get written evidence of coverage as noted above.]]></content:encoded>
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		<title>Answer on What Does A Salvage And Recovery Clause Mean? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/salvage-recovery-clause-mean#answer_27174</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 16:44:39 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/salvage-recovery-clause-mean#answer_27174</guid>
		<description><![CDATA[Salvage and recovery relates to subrogation and rights of recovery that an insurance company reserves for themselves after indemnifying you for a loss.  The entire concept of salvage, recovery, subrogation, and indemnification fill up text books.  Insurance is a contract and in the contract the insurance company has been asked by you, in exchange for mutual understandings and agreements, to provide protection against certain kinds of losses.  When your insurance company indemnifies you for your loss, they replace you in position of right in many situations. For example, if your car were damaged beyond repair, the carrier pays to you the value of the car and in doing so, assumes right and title to the salvage value of your car. They sell this salvage to businesses that resell the usable parts and the insurance company uses the money they collect to lower the final dollar cost of paying your loss to you.  Recovery usually relates to the right of the carrier to pursue &quot;recovery&quot; from the responsible, negligent party who damaged your car.  This process is referred to as subrogating and the carrier seeks to recovery from the at-fault and negligent driver (under tort laws) all or a portion of the amounts they paid to make you whole after your loss. Another closely related provision in your insurance is the right of &quot;abandonment&quot;.  Insurance companies do not grant you the right to abandon your property so you can collect a larger reimbursement.  This may come up during the settlement of pairs and sets, like ear rings. The insurance company will not let you surrender (abandon) to them the other ear ring so you can make the insurance carrier liable for a larger amount so you can buy a new set of ear rings. The obligation of the carrier is to the amount of the the loss even if only a partial loss. That&#039;s why your company will repair a car rather than pay you the full value when there is a partial loss.  There are other places where salvage comes up, like in inland and ocean marine, but for the vast bulk of readers the latter answers explain how these terms impact your coverage and how your insurance company will deal with you.]]></description>
		<content:encoded><![CDATA[Salvage and recovery relates to subrogation and rights of recovery that an insurance company reserves for themselves after indemnifying you for a loss.  The entire concept of salvage, recovery, subrogation, and indemnification fill up text books.  Insurance is a contract and in the contract the insurance company has been asked by you, in exchange for mutual understandings and agreements, to provide protection against certain kinds of losses.  When your insurance company indemnifies you for your loss, they replace you in position of right in many situations. For example, if your car were damaged beyond repair, the carrier pays to you the value of the car and in doing so, assumes right and title to the salvage value of your car. They sell this salvage to businesses that resell the usable parts and the insurance company uses the money they collect to lower the final dollar cost of paying your loss to you.  Recovery usually relates to the right of the carrier to pursue "recovery" from the responsible, negligent party who damaged your car.  This process is referred to as subrogating and the carrier seeks to recovery from the at-fault and negligent driver (under tort laws) all or a portion of the amounts they paid to make you whole after your loss. Another closely related provision in your insurance is the right of "abandonment".  Insurance companies do not grant you the right to abandon your property so you can collect a larger reimbursement.  This may come up during the settlement of pairs and sets, like ear rings. The insurance company will not let you surrender (abandon) to them the other ear ring so you can make the insurance carrier liable for a larger amount so you can buy a new set of ear rings. The obligation of the carrier is to the amount of the the loss even if only a partial loss. That's why your company will repair a car rather than pay you the full value when there is a partial loss.  There are other places where salvage comes up, like in inland and ocean marine, but for the vast bulk of readers the latter answers explain how these terms impact your coverage and how your insurance company will deal with you.]]></content:encoded>
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		<title>Answer on How Long Does It Take To Pay Out On A Contested Life Insurance Policy? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/long-take-pay-contested-life-insurance-policy#answer_27172</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 06 Jul 2015 16:19:43 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/long-take-pay-contested-life-insurance-policy#answer_27172</guid>
		<description><![CDATA[The reason the claim is being contested is because the carrier has a right, and a duty to its policyholders, to make sure that the application was accurate and information it contains didn&#039;t materially misrepresent the health or history of the insured. People do resort to different moral standards when faced with the end of life without adequate financial resources for their family members. And, agents may not provide the best guidance while assisting in application completion. Once submitted, however, underwriting a new application is usually thorough and methodical.  Within two years though, when a claim occurs within the contestable period, there are enough reasonable questions about the health and condition of the insured that these issues are revisited as a matter of due diligence. That is why the contestable period exists. Claims laws in every state do not give the carrier the discretion to drag their feet and they must generally act on the claim within a reasonable period after it is presented.  My experience is that the benefit is paid within 60-90 days or sooner if the application was accurate and all known issues were admitted and acknowledged on the application (when the cause of death is not in dispute). Nevertheless, it is a difficult time to be asked to wait for the policy proceeds.  It has been my experience that the delay is usually reasonable and almost always results in a death benefit being paid.  When challenges are found to the veracity of the application, it becomes more complicated and these increase the chance that all that will be paid is the premium and interest and not the life insurance benefit. That is a rare event, on average.  However, insurance companies cannot be asked to pay for claims on individuals when their condition would not have been accepted and a policy issued. To conceal material fact is a reason any contract can be voided and life insurance is just another form of contract, in the end.]]></description>
		<content:encoded><![CDATA[The reason the claim is being contested is because the carrier has a right, and a duty to its policyholders, to make sure that the application was accurate and information it contains didn't materially misrepresent the health or history of the insured. People do resort to different moral standards when faced with the end of life without adequate financial resources for their family members. And, agents may not provide the best guidance while assisting in application completion. Once submitted, however, underwriting a new application is usually thorough and methodical.  Within two years though, when a claim occurs within the contestable period, there are enough reasonable questions about the health and condition of the insured that these issues are revisited as a matter of due diligence. That is why the contestable period exists. Claims laws in every state do not give the carrier the discretion to drag their feet and they must generally act on the claim within a reasonable period after it is presented.  My experience is that the benefit is paid within 60-90 days or sooner if the application was accurate and all known issues were admitted and acknowledged on the application (when the cause of death is not in dispute). Nevertheless, it is a difficult time to be asked to wait for the policy proceeds.  It has been my experience that the delay is usually reasonable and almost always results in a death benefit being paid.  When challenges are found to the veracity of the application, it becomes more complicated and these increase the chance that all that will be paid is the premium and interest and not the life insurance benefit. That is a rare event, on average.  However, insurance companies cannot be asked to pay for claims on individuals when their condition would not have been accepted and a policy issued. To conceal material fact is a reason any contract can be voided and life insurance is just another form of contract, in the end.]]></content:encoded>
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		<title>Answer on What Does SR22 Insurance Cover? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/what-does-sr22-insurance-cover#answer_25980</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 02 Feb 2015 12:57:54 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/what-does-sr22-insurance-cover#answer_25980</guid>
		<description><![CDATA[An SR22 is nothing more than an administrative trail of the status of your auto insurance coverage.  The form is filed because the State licensing agency has determined a need to be aware of the status of your coverage, usually due to failing to have insurance or having committed any of several offenses of driving laws.  An SR22 is merely attached to your insurance record and your carrier agrees to submit status updates to your state bureau of motor vehicles.  An SR22 does not provide any coverage.]]></description>
		<content:encoded><![CDATA[An SR22 is nothing more than an administrative trail of the status of your auto insurance coverage.  The form is filed because the State licensing agency has determined a need to be aware of the status of your coverage, usually due to failing to have insurance or having committed any of several offenses of driving laws.  An SR22 is merely attached to your insurance record and your carrier agrees to submit status updates to your state bureau of motor vehicles.  An SR22 does not provide any coverage.]]></content:encoded>
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		<title>Answer on Can You Buy Motorcycle Insurance For 1 Month? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/can-you-buy-motorcycle-insurance-for-1-month#answer_25978</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 02 Feb 2015 12:45:16 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/can-you-buy-motorcycle-insurance-for-1-month#answer_25978</guid>
		<description><![CDATA[Would you buy that coverage if they charged you the equivalent of six months premium?  Issuing a policy for a month is as expensive as issuing coverage for a year.  The cost of insurance is calculated using an assumption that the policy will last the length of the term, be it six months or a year.  That is why a &quot;short-rate&quot; table exists to calculate the premium earned when a policy is cancelled before the end of the policy term.  A short rate is recognition of the administrative burden and the cost is passed along in the premium you are charged.  You can buy a policy on a six month term or for a year and then just cancel it but don&#039;t expect the actual cost for a month of insurance to be equal to 1/6th of 1/12th of the premium.  It is likely to be much higher.  But it is possible to end up with coverage for one month.  You just may not like the premium charge when you&#039;re done with the coverage.]]></description>
		<content:encoded><![CDATA[Would you buy that coverage if they charged you the equivalent of six months premium?  Issuing a policy for a month is as expensive as issuing coverage for a year.  The cost of insurance is calculated using an assumption that the policy will last the length of the term, be it six months or a year.  That is why a "short-rate" table exists to calculate the premium earned when a policy is cancelled before the end of the policy term.  A short rate is recognition of the administrative burden and the cost is passed along in the premium you are charged.  You can buy a policy on a six month term or for a year and then just cancel it but don't expect the actual cost for a month of insurance to be equal to 1/6th of 1/12th of the premium.  It is likely to be much higher.  But it is possible to end up with coverage for one month.  You just may not like the premium charge when you're done with the coverage.]]></content:encoded>
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		<title>Answer on How Much Is Insurance On A Box Truck? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/how-much-is-insurance-on-a-box-truck#answer_25977</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Mon, 02 Feb 2015 12:34:29 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/how-much-is-insurance-on-a-box-truck#answer_25977</guid>
		<description><![CDATA[There is no way to answer this general question but I can provide you some guidance.  If this is a commercial use vehicle the vehicle will be rated on where it is operated, how it is operated, radius of operations, and the industry it serves.  Then we&#039;ll need to know the coverage required.  Commercial vehicles have the same coverages as you will find on a personal auto policy.  A vehicle insured as I suggest for business with full coverage and used as a service vehicle, will cost from 3-7% of its value new each year for the liability and physical damage coverage.  I just insured a 2014 work van used for service by a property owner and a value of $33,000 MSRP new and the insurance cost was under $1,100 a year for $1 Mil CSL Liability and UM/UIM, $5,000 Med and $500 comp and coll deductibles in Ciincinnati.  Use as a guide only.  Your mileage may vary.]]></description>
		<content:encoded><![CDATA[There is no way to answer this general question but I can provide you some guidance.  If this is a commercial use vehicle the vehicle will be rated on where it is operated, how it is operated, radius of operations, and the industry it serves.  Then we'll need to know the coverage required.  Commercial vehicles have the same coverages as you will find on a personal auto policy.  A vehicle insured as I suggest for business with full coverage and used as a service vehicle, will cost from 3-7% of its value new each year for the liability and physical damage coverage.  I just insured a 2014 work van used for service by a property owner and a value of $33,000 MSRP new and the insurance cost was under $1,100 a year for $1 Mil CSL Liability and UM/UIM, $5,000 Med and $500 comp and coll deductibles in Ciincinnati.  Use as a guide only.  Your mileage may vary.]]></content:encoded>
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		<title>Answer on What States Have Their Own Health Insurance Exchange? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/health-insurance/what-states-have-their-own-health-insurance-exchange#answer_25975</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 20:24:00 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/health-insurance/what-states-have-their-own-health-insurance-exchange#answer_25975</guid>
		<description><![CDATA[The majority of states did not set up their own health insurance exchanges as Obamacare was being set up.  But your question is harder to answer than you might expect because there are federal-state partnerships of one extent or another in 11 states.  There are 13 states plus DC that set up their own plans.  The rest are federally facilitated markets.  The states that set up their own plans include CA, WA, ID, CO, MN, NY, VT, NH, RI, CT, VT, KY, VA, and DC.]]></description>
		<content:encoded><![CDATA[The majority of states did not set up their own health insurance exchanges as Obamacare was being set up.  But your question is harder to answer than you might expect because there are federal-state partnerships of one extent or another in 11 states.  There are 13 states plus DC that set up their own plans.  The rest are federally facilitated markets.  The states that set up their own plans include CA, WA, ID, CO, MN, NY, VT, NH, RI, CT, VT, KY, VA, and DC.]]></content:encoded>
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		<title>Answer on Does Auto Insurance Cover Theft Of Items From The Car? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/does-auto-insurance-cover-theft-of-items-from-the-car#answer_25974</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 20:14:08 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/does-auto-insurance-cover-theft-of-items-from-the-car#answer_25974</guid>
		<description><![CDATA[The short answer is that unless the car is stolen, or parts of the car are stolen, theft of items from a car are not covered.  You&#039;ll seek this coverage from your homeowner insurance.  If your car is stolen there is a small amount of coverage that comes from the auto after 48 hours.  As usually, check with your local agent or insurance company to see how they have written your policy but what I have described in the common policy construction.  Auto policies are not designed to coverage your personal property.]]></description>
		<content:encoded><![CDATA[The short answer is that unless the car is stolen, or parts of the car are stolen, theft of items from a car are not covered.  You'll seek this coverage from your homeowner insurance.  If your car is stolen there is a small amount of coverage that comes from the auto after 48 hours.  As usually, check with your local agent or insurance company to see how they have written your policy but what I have described in the common policy construction.  Auto policies are not designed to coverage your personal property.]]></content:encoded>
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		<title>Answer on Does Every State Require Car Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/does-every-state-require-car-insurance#answer_25973</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 20:09:16 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/does-every-state-require-car-insurance#answer_25973</guid>
		<description><![CDATA[The easy answer is, as of my last update, NO.  But, that is not the end of the answer.  While insurance may not be required, financial responsibility is required in every state.  Virginia allows you to pay an &quot;uninsured motor vehicle fee&quot; and Mississippi allows you to post a bond or cash to meet the financial responsibility requirements there.  Florida is also unique because of their no-fault law but that does not relieve you of the obligation to maintain financial responsibility under some circumstances.]]></description>
		<content:encoded><![CDATA[The easy answer is, as of my last update, NO.  But, that is not the end of the answer.  While insurance may not be required, financial responsibility is required in every state.  Virginia allows you to pay an "uninsured motor vehicle fee" and Mississippi allows you to post a bond or cash to meet the financial responsibility requirements there.  Florida is also unique because of their no-fault law but that does not relieve you of the obligation to maintain financial responsibility under some circumstances.]]></content:encoded>
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		<title>Answer on Why Roll Over 401K To Roth IRA? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/retirement-plans/why-roll-over-401k-to-roth-ira#answer_25970</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 19:47:43 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/retirement-plans/why-roll-over-401k-to-roth-ira#answer_25970</guid>
		<description><![CDATA[That is a great question.  Rolling over a traditional tax qualified 401K account to a Roth IRA would generate taxes and penalties so the benefit would certainly not be the tax savings, now would it?  A 401K converion transfer is called a Roth Conversion.  There is a conversion option that might work and we call it a &quot;backdoor Roth IRA&quot; and it might provide some advantages but will require several steps and tax computations and may not be appropriate for you based on the information provided.  Your best answer would be to consult with a local agency to learn more about how this conversion tactics might benefit you in a Roth IRA.]]></description>
		<content:encoded><![CDATA[That is a great question.  Rolling over a traditional tax qualified 401K account to a Roth IRA would generate taxes and penalties so the benefit would certainly not be the tax savings, now would it?  A 401K converion transfer is called a Roth Conversion.  There is a conversion option that might work and we call it a "backdoor Roth IRA" and it might provide some advantages but will require several steps and tax computations and may not be appropriate for you based on the information provided.  Your best answer would be to consult with a local agency to learn more about how this conversion tactics might benefit you in a Roth IRA.]]></content:encoded>
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		<title>Answer on Is it possible to get renters insurance backdated to the 1st of the month for landlord purposes only? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/renters-insurance/possible-get-renters-insurance-backdated-1st-month-landlord-purposes#answer_25969</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 19:33:58 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/renters-insurance/possible-get-renters-insurance-backdated-1st-month-landlord-purposes#answer_25969</guid>
		<description><![CDATA[Backdating an effective date means coverage was effective from that date forward and as a common practice, it is prohibited by carriers.  There are controlled situations where they may permit backdating.  One is where there is a &quot;statement of no loss&quot; but it is risky business for the carrier if you are a new customer.  We accept a &quot;statement of no loss&quot; when reinstating coverage but only with the permission of the carrier and the form is their requirement not ours.  If an agency is willing to backdate without the carrier he/she has probably violated carrier rules and/or state law.]]></description>
		<content:encoded><![CDATA[Backdating an effective date means coverage was effective from that date forward and as a common practice, it is prohibited by carriers.  There are controlled situations where they may permit backdating.  One is where there is a "statement of no loss" but it is risky business for the carrier if you are a new customer.  We accept a "statement of no loss" when reinstating coverage but only with the permission of the carrier and the form is their requirement not ours.  If an agency is willing to backdate without the carrier he/she has probably violated carrier rules and/or state law.]]></content:encoded>
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		<title>Answer on Can I add my Fiance to my auto insurance in pennsylvania if he is not listed on the finance contract? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/can-add-fiance-auto-insurance-pennsylvania-listed-finance-contract#answer_25968</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 19:20:32 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/can-add-fiance-auto-insurance-pennsylvania-listed-finance-contract#answer_25968</guid>
		<description><![CDATA[Your finance agreement and your insurance are two separate issues.  The insurance is merely providing your lender a security interest in any claim payment made for damage to the collateral - your financed car.  As for the insurance, you might be asking whether you can add your fiance to the insurance policy for coverage.  Most companies will add regular operators of your vehicle to the drivers list and provide insurance coverage when they/he operates your car.  You&#039;ll have to check with your insurance company to see whether they will add your fiance as an additional first named insured on your policy but I suggest that until you have married, it is best that you keep the policy in your name, add him as a named driver, and keep your interests simple for now.  There are complex issues about insurable interest that may be best left off this answer.  And as always, check with your local agent or your insurance company for the best answer on how they think you should proceed.]]></description>
		<content:encoded><![CDATA[Your finance agreement and your insurance are two separate issues.  The insurance is merely providing your lender a security interest in any claim payment made for damage to the collateral - your financed car.  As for the insurance, you might be asking whether you can add your fiance to the insurance policy for coverage.  Most companies will add regular operators of your vehicle to the drivers list and provide insurance coverage when they/he operates your car.  You'll have to check with your insurance company to see whether they will add your fiance as an additional first named insured on your policy but I suggest that until you have married, it is best that you keep the policy in your name, add him as a named driver, and keep your interests simple for now.  There are complex issues about insurable interest that may be best left off this answer.  And as always, check with your local agent or your insurance company for the best answer on how they think you should proceed.]]></content:encoded>
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		<title>Answer on Can I Rent A Car With SR22 Insurance? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/can-i-rent-a-car-with-sr22-insurance-2#answer_25966</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 18:02:46 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/can-i-rent-a-car-with-sr22-insurance-2#answer_25966</guid>
		<description><![CDATA[An SR22 is simply an administrative requirement by your licensing agency that your insurance carrier keep them away of the status of your coverage.  This is probably due to failing to have insurance, exceeding points in their rating system, or because you got caught operating a vehicle under certain other circumstances.  Unless your insurance carrier prohibits the extension of liability borrowed, rented, or use of other non-owned cars, you should have coverage but the best answer will be the one your insurance company or agent gives you.]]></description>
		<content:encoded><![CDATA[An SR22 is simply an administrative requirement by your licensing agency that your insurance carrier keep them away of the status of your coverage.  This is probably due to failing to have insurance, exceeding points in their rating system, or because you got caught operating a vehicle under certain other circumstances.  Unless your insurance carrier prohibits the extension of liability borrowed, rented, or use of other non-owned cars, you should have coverage but the best answer will be the one your insurance company or agent gives you.]]></content:encoded>
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		<title>Answer on How Does A Sole Proprietor Retire? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/retirement-plans/sole-proprietor-retire#answer_25963</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 03:13:05 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/retirement-plans/sole-proprietor-retire#answer_25963</guid>
		<description><![CDATA[The answer to the question is that you do it when you&#039;re ready.  Now that my feeble effort at humor is out of the way, there are ways to leverage your company success into a retirement.  You could work a mutual purchase agreement with a similar competitor.  You could groom a key employee as a successor-buyer and help them finance the purchase or down payment.  You can secure the sale with life insurance too.]]></description>
		<content:encoded><![CDATA[The answer to the question is that you do it when you're ready.  Now that my feeble effort at humor is out of the way, there are ways to leverage your company success into a retirement.  You could work a mutual purchase agreement with a similar competitor.  You could groom a key employee as a successor-buyer and help them finance the purchase or down payment.  You can secure the sale with life insurance too.]]></content:encoded>
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		<title>Answer on Can I Get Mail Order Prescriptions From Cigna? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/health-insurance/can-i-get-mail-order-prescriptions-from-cigna#answer_25962</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 03:06:28 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/health-insurance/can-i-get-mail-order-prescriptions-from-cigna#answer_25962</guid>
		<description><![CDATA[I am not an attorney but I think it only makes sense to reserve an answer to a point after an investigation so the facts don&#039;t later exonerate you from responsibility.  Our advice is always to show compassion for injured people but to avoid admitting fault until all the facts are known.]]></description>
		<content:encoded><![CDATA[I am not an attorney but I think it only makes sense to reserve an answer to a point after an investigation so the facts don't later exonerate you from responsibility.  Our advice is always to show compassion for injured people but to avoid admitting fault until all the facts are known.]]></content:encoded>
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		<title>Answer on Is Auto Insurance Cheaper For Cars Or Pickup Trucks? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/is-auto-insurance-cheaper-for-cars-or-pickup-trucks#answer_25961</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 03:02:51 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/is-auto-insurance-cheaper-for-cars-or-pickup-trucks#answer_25961</guid>
		<description><![CDATA[If we were to average the insurance cost on one new car of every make and model, and do the same for every truck and SUV, the difference in cost between the rate will largely be the difference between the group of cars with a higher average value.  Recent research has shown trucks to be slightly less expensive for occupants because they weather an accident better in a vehicle with greater mass (weight).  On the other hand, trucks are causing slightly greater injuries to those hit by trucks and inside the cars they hit.  Dollar for dollar I&#039;d give a very slight edge to trucks as cheaper to insure.]]></description>
		<content:encoded><![CDATA[If we were to average the insurance cost on one new car of every make and model, and do the same for every truck and SUV, the difference in cost between the rate will largely be the difference between the group of cars with a higher average value.  Recent research has shown trucks to be slightly less expensive for occupants because they weather an accident better in a vehicle with greater mass (weight).  On the other hand, trucks are causing slightly greater injuries to those hit by trucks and inside the cars they hit.  Dollar for dollar I'd give a very slight edge to trucks as cheaper to insure.]]></content:encoded>
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		<title>Answer on Is Car Insurance Cheaper If Married? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/is-car-insurance-cheaper-if-married#answer_25960</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 02:53:07 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/is-car-insurance-cheaper-if-married#answer_25960</guid>
		<description><![CDATA[In the three states I operate within the answer is an easy YES.  Some states have enacted &quot;essential insurance&quot; laws to minimize or eliminate differences in rates based upon sex for youthful drivers.  However, marriage is a long understood marker of stability and companies once used similar indicators to give underwriting guidance to an application.]]></description>
		<content:encoded><![CDATA[In the three states I operate within the answer is an easy YES.  Some states have enacted "essential insurance" laws to minimize or eliminate differences in rates based upon sex for youthful drivers.  However, marriage is a long understood marker of stability and companies once used similar indicators to give underwriting guidance to an application.]]></content:encoded>
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		<title>Answer on What Factors Contribute To High Car Insurance Premiums? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/factors-contribute-high-car-insurance-premiums#answer_25959</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 02:48:20 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/factors-contribute-high-car-insurance-premiums#answer_25959</guid>
		<description><![CDATA[The answer is rather simple on the surface.  The state you live in, the rating territory, the type of vehicle including year, make and model, the number of miles driven to and from work one way, the annual miles you drive, the age of the driver, the marital status of the driver, the driving history of the predominate driver (and other drivers in the household), and the overall success of your insurance carrier at underwriting for a profit in you territory or state.  Don&#039;t overlook the influence of the required coverage for your state.  There are so many influencers but this hits the high points in brief.]]></description>
		<content:encoded><![CDATA[The answer is rather simple on the surface.  The state you live in, the rating territory, the type of vehicle including year, make and model, the number of miles driven to and from work one way, the annual miles you drive, the age of the driver, the marital status of the driver, the driving history of the predominate driver (and other drivers in the household), and the overall success of your insurance carrier at underwriting for a profit in you territory or state.  Don't overlook the influence of the required coverage for your state.  There are so many influencers but this hits the high points in brief.]]></content:encoded>
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		<title>Answer on Does Car Insurance Need To Be In Name Of Registered Owner? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/does-car-insurance-need-to-be-in-name-of-registered-owner#answer_25958</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 02:38:17 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/does-car-insurance-need-to-be-in-name-of-registered-owner#answer_25958</guid>
		<description><![CDATA[The name of the insured should appear on the policy as a first named insured to avoid some of the obvious complications with lender or leasehold interests.  That said, the registered owners name doesn&#039;t necessarily have to appear on the dec page.  Here is why:  your wife may be listed as the policyholder but most states recognize the marital relationship as conferring the same legal rights to the unnamed spouse.  This may not yet be recognized for domestic partners such as common law relationships or same sex couples.  Check with a local agent or your state department of insurance for localized information you can bank on.]]></description>
		<content:encoded><![CDATA[The name of the insured should appear on the policy as a first named insured to avoid some of the obvious complications with lender or leasehold interests.  That said, the registered owners name doesn't necessarily have to appear on the dec page.  Here is why:  your wife may be listed as the policyholder but most states recognize the marital relationship as conferring the same legal rights to the unnamed spouse.  This may not yet be recognized for domestic partners such as common law relationships or same sex couples.  Check with a local agent or your state department of insurance for localized information you can bank on.]]></content:encoded>
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		<title>Answer on How Does A Whole Life Insurance Policy Build Cash Value? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/how-does-a-whole-life-insurance-policy-build-cash-value#answer_25957</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 02:29:36 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/how-does-a-whole-life-insurance-policy-build-cash-value#answer_25957</guid>
		<description><![CDATA[A Permanent insurance policy like a whole life can build a cash value because it was designed to do just that.  At the age of purchase your insurance company knows how long you will live by average.  The premium they charge for each unit of coverage (usually per 1000) is calculated to cover the mortality costs, company costs and profits, and the reserve build up you know as cash value.  At interest, the reserve builds even more because the interest growth is not subject to current income taxation.  The actuarial mathematicians at the insurance company have even figured out how to pay the life insurance proceeds if you die without accomplishing any cash value at all.]]></description>
		<content:encoded><![CDATA[A Permanent insurance policy like a whole life can build a cash value because it was designed to do just that.  At the age of purchase your insurance company knows how long you will live by average.  The premium they charge for each unit of coverage (usually per 1000) is calculated to cover the mortality costs, company costs and profits, and the reserve build up you know as cash value.  At interest, the reserve builds even more because the interest growth is not subject to current income taxation.  The actuarial mathematicians at the insurance company have even figured out how to pay the life insurance proceeds if you die without accomplishing any cash value at all.]]></content:encoded>
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		<title>Answer on What Is Needed For A Homeowners Insurance Quote? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/what-is-needed-for-a-homeowners-insurance-quote#answer_25956</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 02:20:17 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/what-is-needed-for-a-homeowners-insurance-quote#answer_25956</guid>
		<description><![CDATA[Insurance underwriters will be underwriting the insured, the property and its characteristics, the available fire protection in your community, and proximity to known hazards.  You should be prepared to give your personal information and be able to describe the home, it&#039;s style of construction, it&#039;s age or when built, and the age of heat, AC, electrical system, plumbing and roof along with other typical improvements or major maintenance.  Indicate whether you have qualifying alarm systems and other protective devices.  It helps to have present coverage info in hand to provide coverage dates for accurate rating.  The more you can help answer rating and qualification questions, the better.]]></description>
		<content:encoded><![CDATA[Insurance underwriters will be underwriting the insured, the property and its characteristics, the available fire protection in your community, and proximity to known hazards.  You should be prepared to give your personal information and be able to describe the home, it's style of construction, it's age or when built, and the age of heat, AC, electrical system, plumbing and roof along with other typical improvements or major maintenance.  Indicate whether you have qualifying alarm systems and other protective devices.  It helps to have present coverage info in hand to provide coverage dates for accurate rating.  The more you can help answer rating and qualification questions, the better.]]></content:encoded>
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		<title>Answer on What Is Needed For A Homeowners Insurance Quote? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/home-insurance/what-is-needed-for-a-homeowners-insurance-quote#answer_25955</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 02:18:55 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/home-insurance/what-is-needed-for-a-homeowners-insurance-quote#answer_25955</guid>
		<description><![CDATA[Insurance underwriters will be underwriting the insure do, the property and its characteristics, the available fire protection in your community, and proximity to known hazards.  You should be prepared to give your personal information and be able to describe the home, it&#039;s style of construction, it&#039;s age or when built, and the age of heat, AC, electrical system, plumbing and roof along with other typical improvements or major maintenance.  Indicate whether you have qualifying alarm systems and other protective devices.  It helps to have present coverage info in hand to provide coverage dates for accurate rating.  The more you can help answer rating and qualification questions, the better.]]></description>
		<content:encoded><![CDATA[Insurance underwriters will be underwriting the insure do, the property and its characteristics, the available fire protection in your community, and proximity to known hazards.  You should be prepared to give your personal information and be able to describe the home, it's style of construction, it's age or when built, and the age of heat, AC, electrical system, plumbing and roof along with other typical improvements or major maintenance.  Indicate whether you have qualifying alarm systems and other protective devices.  It helps to have present coverage info in hand to provide coverage dates for accurate rating.  The more you can help answer rating and qualification questions, the better.]]></content:encoded>
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		<title>Answer on Can I Use The Insurance Policy To Cover Accident While Driving A Friends Car? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/auto-insurance/can-use-insurance-policy-cover-accident-driving-friends-car#answer_25954</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 02:05:21 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/auto-insurance/can-use-insurance-policy-cover-accident-driving-friends-car#answer_25954</guid>
		<description><![CDATA[Insurance follows the vehicle in Ohio.  Your insurance would only apply if the vehicle you were operating was uninsured.  It is my understanding that most states follow this logic.  If you were injured you may be compelled to seek injury coverage from your own insurance.  In Michigan under their no-fault law everyone seeks protection from their own insurance first.]]></description>
		<content:encoded><![CDATA[Insurance follows the vehicle in Ohio.  Your insurance would only apply if the vehicle you were operating was uninsured.  It is my understanding that most states follow this logic.  If you were injured you may be compelled to seek injury coverage from your own insurance.  In Michigan under their no-fault law everyone seeks protection from their own insurance first.]]></content:encoded>
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		<title>Answer on What Types Of Death Does Term Life Insurance Cover? by Terry A. McCarthy, CLU, ChFC</title>
		<link>https://www.insurancelibrary.com/life-insurance/what-types-of-death-does-term-life-insurance-cover#answer_25953</link>
		<dc:creator>Terry A. McCarthy, CLU, ChFC</dc:creator>
		<pubDate>Sun, 01 Feb 2015 01:55:10 +0000</pubDate>
		<guid isPermaLink="false">https://www.insurancelibrary.com/life-insurance/what-types-of-death-does-term-life-insurance-cover#answer_25953</guid>
		<description><![CDATA[After you have passed the &quot;contestable&quot; period of two years&#039; unless otherwise limited, all death is covered.  Some avocation may be excluded so without more info this is the best answer possible. Some policies have war clauses for active military and known hazards may be excluded from policy coverage.  Check your policy closely or consult your agent or carrier.]]></description>
		<content:encoded><![CDATA[After you have passed the "contestable" period of two years' unless otherwise limited, all death is covered.  Some avocation may be excluded so without more info this is the best answer possible. Some policies have war clauses for active military and known hazards may be excluded from policy coverage.  Check your policy closely or consult your agent or carrier.]]></content:encoded>
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