Car Renters Beware

I caught this little piece in the New York Times Travel section about rental car insurance. After reading it, I have to admit, I'll be reconsidering declining the insurance at the rental counter. Bottom line of the piece -- do your homework.

Here is a link to the article: "Do You Really Need Rental Car Insurance? 8 Things to Know."

Take a Deep Breath - Hurricane Season Is Over

NOAA 2015 Hurricane Seasons Outlooks
 issued in May. Click here to view. 

Amid all the holiday hubbub, climate change talks and debate over what to do about Syrian refugees, one major seasonal worry has ended. November 30, 2015 marked the end of the hurricane season for the Atlantic, central and eastern Pacific.

NOAA released its assessment of the season noting that there were 11 named storms in the Atlantic, on the higher end of their prediction released prior to the start of the season in mid-May. Four of the storms became Hurricanes and two, Danny and Joaquin, became major hurricanes. No hurricanes made landfall, but two tropical storms — Ana and Bill — struck the coasts of South Carolina and Texas, respectively.

By contrast, the central and eastern Pacific were the most active with a total of 32 named storms. Of the 32 named storms, 21 evolved into hurricanes. In the eastern Pacific, where 18 hurricanes spawned, nine became major hurricanes. The central Pacific experienced eight hurricanes of which five became major storms. NOAA noted that of the five hurricanes in the central Pacific, three became major hurricanes (Ignacio, Kilo and Jimena) and “churned at the same time east of the International Dateline, the first time that was ever recorded.”

NOAA said the storm activity in the Pacific broke records that go back to 1971 when reliable record keeping began. The weather service pointed to El Niño as “the leading climate factor influencing both the Atlantic and Pacific seasons this year.”

“El Niño produces a see-saw effect, suppressing the Atlantic season while strengthening the eastern and central Pacific hurricane seasons,” said Gerry Bell, Ph.D., lead seasonal hurricane forecaster at NOAA’s Climate Prediction Center. “El Niño intensified into a strong event during the summer and significantly impacted all three hurricanes seasons during their peak months.”

The complete report from NOAA including maps detailing regional storm activity is available by clicking here.

Passing of a Child Star from the 50s and 60s - Charles Herbert

The Fly - 1958 - 20th Century Fox
promotional photo - Charles Herbert
and Vincent Price.

If you are a lover of those 'B' movie horror films or some classic comedies of the late 50s through 60s you may be interested in the recent passing of Charles Herbert. The New York Times said on Friday that Herbert, 66, died in Las Vegas on Oct. 31.

Herbert was a child star who appeared in the 1958 classic "The Fly." He made many other appearances, says the Times, in both movies and television including a segment of the "Twilight Zone," which I honestly don't remember but will probably look for now.

More about Herbert is available by clicking here - an unfortunate story about a very successful child actor who did not find the same success as an adult. 

The Pizza and Insurance Liability

I've been a little quiet for awhile, but I just came across this story about insurance and how costly it can be for those kids delivering pies in a hurry. Something worth thinking about here.

That pizza you ordered just came with a huge insurance liability

ACA — Fix It, Don’t Break It

By Mark E. Ruquet

Despite the Supreme Court’s decision in June of this year that preserved the nationwide tax subsidies for medical insurance under Obama Care, ensuring the law's viability, critics still want to dismantle the program. They pursue this goal in spite of the fact that the program has demonstrated that there is an overwhelming need for coverage and the general belief that Obama Care, or the Patient Protection and Affordable Care Act (ACA), is now securely part of the fabric of the U.S. healthcare system.

Why continue this push? Part of it is the same irrational demagoguery the law faced during its fight for passage. The other is the misplaced beliefs that any increase in taxes is evil and federal mandates are another attempt at government control.

However, one compelling benefit critics neglect to acknowledge is that six million Americans who could not afford medical insurance now can. Yes, it is not a perfect system. I have experienced changes in my own t thrill me either. insurance coverage purportedly brought on by the program that do not make me happy. I am paying more in premium and feel I am getting less up front – specifically, higher deductibles, which does not thrill me.

Some recent reports on insurance company requests for increases underscores the growing pains health insurance coverage is going through. A New York Times piece from July 3 reviewed how the expanded pool of the insured produced higher costs. Why, they were sick and needed coverage – coverage denied to them previous because insurers would not cover pre-existing conditions or charge more for some maladies. According to the Times, in some cases there is a need for the increases, as some regulators either permitted the increases or ordered higher increases to protect the insurers’ solvency.

Another concern for insurers is that they can no longer cap coverage. Before the act, my experience was that lifetime coverage would not exceed $1 million. God forbid anyone suffer a debilitating illness — such as cancer that $1 million limit evaporates quickly. Remember, what is the number one reason for bankruptcy in this country? Illness.

I have heard criticism that the act does not curb costs. Over the long term, ACA should rein in costs as more people adjust their approach to health service and stop using the emergency room as their primary physician. I would also suggest that as sick seek regular healthcare service, and not just wait until they are sick, expense should stabilize as the insured become healthier.

Nevertheless, to control costs there needs to be a fundamental reassessment of the way hospitals charge for patient care. Families should not have to hold fundraisers to pay for care. The United States is among the world’s advanced industrial societies, but we fail to provide financial solace for the sick while elsewhere governments have managed to eliminate this dilemma for its citizens.

Is it cheap or free? No. In Europe, their taxes are higher to pay for these services, but if you end up in a hospital, you are not worried about the bill breaking the bank. They have also figured out how to allow the hospitals and doctors to make a good living.

Capitalism is good for business, but it is failing our healthcare system and we still need to go further with reform. Just focusing on healthcare insurers, do we want carriers to be more comfortable in their underwriting and eventually stabilize costs? One answer — create a federalized insurance program that caps insurers’ losses. They pay a premium for membership in exchange for certainty in knowing their losses will be limited. To promote reserves, the program would invest the premium into bonds and the proceeds from the investment return to the program, building reserve and stabilizing the premium insurers pay. That would also translate into consumers seeing a savings because insurers would not have to increase premiums repeatedly to cover anticipated losses that are difficult to impossible to predict.

This is not a re-imagined federal flood insurance program. Unlike flood, there would be a mechanism outside of the Treasury to keep the program’s reserves intact and growing. To make this successful, Congress must not access the reserves if it feels the need to use the funds to plug-up holes in the U.S. budget. Legislators are notorious for making short-sighted decisions without considering the long term implications, or not holding their promise to put the full faith of the U.S. government behind the program’s deficit caused by their own neglect.

However, all of this is for naught if hospital charges are not controlled. Steven Brill’s reporting in TIME magazine about the medical establishment and the bizarre logic behind medical billing underscores the fact that the system is broken. The solution, short of government control, still needs to be debated and developed. However, Republicans should be holding hearings about hospital charges and stop wasting time trying to find ways to end the first national program that has brought affordable medical insurance to millions of Americans. If critics want to do something positive — come up with answers to improve the program and stop trying to tear it down.

  

Advice For Used Car Buyers - Check It Out First

A field of thousands of cars awaiting their fate.
Source: NAIC

By Mark E. Ruquet

In the market for a used car or some used auto parts? Well, a recent public service announcement from the National Insurance Crime Bureau will give you pause before making that purchase. The NICB says that the recent flooding in Texas has produced up to 10,000 automobile insured losses and just like other natural disasters in the past, some of those cars may find their way into disreputable hands.

The NICB said working with member companies, law enforcement and companies that handle the damaged autos, the vehicles are readied for sale. All the cars are re-titled with the Department of Motor Vehicle to indicate the auto was flood damaged. Most are sold to companies that strip the cars for usable parts.

Unfortunately, some cars are cleaned up, the VIN number switched and re-sold out of state. To help prevent buyers from purchasing these damaged vehicles, the NAIC has set up a database that allows buyers to check the automobile’s background before they make that purchase. They also warn against sellers who clean-up a damaged car that was never insured and try to sell it, adding to always have a mechanic check the car before you purchase it.  

The NAIC has produced a video along with giving more detail about its efforts, plus some useful buying tips and where to find help. A link to the NAIC’s public service announcement, video and buying is here.

While it’s great that the NAIC and others work hard to make buyers aware of these schemes, I wonder why don’t they simply make sure that a vehicle that’s been flooded is made inoperable. Maybe used parts buyers should wonder too. If its used, well, where did it come from and can you be certain the part will work like its suppose to?  

The industry has had lots of experience with this situation. Superstorm Sandy produced an estimated 250,000 insured vehicle losses and Hurricane Katrina resulted in more than 300,000 vehicles damaged.

Of course, if people were honest, we would not have to worry about finding an honest dealer and could avoid these situations.

Anyway, the reality is that there are lowlifes out there that try to palm off damaged autos on unsuspecting buyers. As the old saying goes — buyer beware or if it seems too good to be true -- it probably is too good to be true.

Memorial Day - Midland Beach - 2015

In memory of my father, a veteran of
World War II.

Just a little something I recorded from the community of Midland Beach, Staten Island, N.Y. honoring those who gave the ultimate sacrifice. The sound isn't great, but the spirit is there.

Please watch here.