What are the benefits of automobile insurance?
What are the primary coverages that an automobile policy would provide?
Liability Coverage - pays for Bodily Injury and Property Damage to other parties.
Bodily Injury Liability provides coverage if you cause an accident that injures or kills another person. There is no deductible and legal defense is also included in this coverage. This type of insurance is mandatory in New York State.
Property Damage Liability is for damage to someone else's property.
Personal Injury Protection (No fault) - If you are injured in an accident with your vehicle, your insurance company reimburses you and your passengers injured by your car for financial losses like medical expenses and lost wages due to the accident, regardless of who was at fault. This coverage does not apply to vehicle damage.
Uninsured Motorist Coverage - covers injuries to you and anyone in your household if injured by an uninsured motorist or hit-and-run driver.
Underinsured Motorist Coverage - protects you and anyone in your household against eligible bodily injury losses up to the underinsured motorist limits you purchased when you cannot recover the losses from an at-fault motorist because the at-fault motorist's liability limits are too low to cover your expenses.
Physical Damage Coverage - pays for damage to your car through Collision and Comprehensive coverages subject to a deductible.
Collision - pays for damage caused by a collision.
Comprehensive - pays for damage for causes other than collision. Examples would include fire or theft.Refer to your policy for limits and deductibles.
What is a deductible?
A deductible is the initial amount you must pay before the insurance company can start to reimburse. The higher the deductible, the lower the premium. When selecting a deductible, consider your ability to pay the deductible in the event of a loss; insurance cost; and age and value of automobile.
Why do I need homeowners insurance?
Homeowners Insurance protects you and your home from covered losses. Coverage is also extended to your personal belongings and valuables, legal representation if someone gets hurt on your property, and protection against a financial loss that you could not individually overcome.
Is my in-home business covered by my homeowners policy?
Your homeowners policy provides no liability insurance for your home-based business. Coverage is very limited, if not excluded, for items used in your business. This includes but is not limited to computers, fax machines, tools, filing cabinets, etc. Usually, coverage is limited to $2,500 in your home and $250 away from home.
Does my homeowners policy cover my jet ski?
No, it is excluded.
Does my homeowners policy cover flood?
Flood or seepage is not covered by a homeowners policy.
Please explain coinsurance and how it effects my property policy.
Coinsurance is a means whereby insurance companies enforce property limits to total value. Most losses are partial in nature vs. a total loss, and to prevent insureds from underinsuring their property, but still receiving 100% of a loss, coinsurance provisions are provided in most commercial policies. This provision causes the policyholder to receive less than the actual loss since they didn't insure to proper value. A typical coinsurance percentage is 80%.
Please explain the difference between Replacement Cost and Actual Cash Value.
Actual Cash Value is defined as replacement cost minus depreciation. With Replacement Cost coverage, the insurance company will replace the damaged property with new materials or items.
When do I need to carry workers compensation coverage?
In NYS, WC coverage is needed when a company, partnership or individual has people working for wages on their behalf who do not provide certificates of insurance evidencing coverage is provided for them elsewhere.
What is EPLI?
EPLI stands for Employment Practices Liability Insurance. Standard general liability policies exclude coverage for discrimination, sexual harassment, wrongful termination and failure to comply with the Americans with Disabilities Act. EPLI policies cover these types of claims against the insured party.
Please describe the difference between additional insured and additional named insured.
An additional named insured in the policy declarations refers to the individuals or entities to which coverage applies for acts that they are legally liable for or for property which coverage is afforded. Additional insureds are covered for the negligence of the insured for which they had no active part but are brought into the claim through the legal process
Why are commercial insurance rates increasing?
For the past 5-6 years, rates were decreasing due to cash flow underwriting wherein insurance companies were making profits from the tremendous growth of the stock market. With the slowing down of investment profits and the many mergers of the insurance industry equating to fewer competitors, premiums are rising.
What is the definition of Surety?
Surety is an extension of credit.
How does insurance differ from Surety?
Insurance is a two-party contract whereby Surety is a three-party contract.
Does an Insurance Company expect a loss? Does a Surety Company?
Insurance is the transfer of risk & losses are expected. Surety should be loss free.
Who are the three parties to a Surety Bond?
What is a Surety Bond?
A surety bond is a promise to be liable for debt, default or failure of another.
What are the functions of the Surety?
Pre-qualifying the Principal by providing guarantees of contractual performance and payment of bills in the event of a contractor's inability or unreasonable unwillingness to do so.
How should an accountant prepare a contractor statement using the Generally Accepted Accounting Principles (GAAP)?
What are the "Three C's of Surety"?
Is there a Manual for Surety?
The Surety Association of America classifies all bonds into categories and establishes a rate. This rate can be deviated by any surety company by filing with the appropriate insurance department.
If I employ high school students on a part-time basis, do they need to be covered for New York State DBL?
No. Daytime students in elementary or secondary school who work part-time during the school year or during regular vacations are not eligible to receive NYS DBL Benefits.
How much of a benefit is paid under New York State DBL?
An employee will receive 50% of their average weekly earnings up to a maximum of $170 per week. Benefits will be paid after a 7-day waiting period for as long as a person continues to be disabled up to a maximum of 26 weeks in a 52 week period
If an individual has elected COBRA, are they allowed to participate in an "open enrollment"?
Yes. COBRA qualified beneficiaries may change coverages during an "open enrollment". They are given the same choices as similarly situated active employees.
What are the provisions of the Family Medical Leave Act?
The Family Medical Leave Act (FMLA) requires employers with 50 or more employees to provide 12 work weeks of unpaid leave during any 12 month period for the birth or adoption of a child, to care for a family member with a serious medical condition or because of the employee's own serious medical condition. Employers are required to maintain health coverage during the leave period and, upon return from leave, to place the employee in the same or an equivalent job with equivalent benefits.
Are all employees eligible for Family Medical Leave?
Employers with 50 or more employees are required to provide Family Medical Leave to an employee who has worked for the employer for at least 12 months and, during that 12-month period, worked a minimum of 1,250 hours.
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