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The Perils of Self-Funding Long-Term Care

What You Need to Know Some clients have the self-discipline to lock cash away in ordinary investments. The portfolio could crash at the worst time. The need for care could come earlier than expected. Should my client Bob self-fund the long-term care risk or select a hybrid long-term care policy? He’s 67 and does have some health issues. Since he’s an engineer and an accountant, and he’s pursuing his doctorate in AI, I definitely expected insightful questions from him. Sure enough, Bob sent this thought-provoking email: “Using the $6,500 benefit for four years and assuming the guaranteed rate, my maximum benefit is $563,053. If I invest the one-time premium at 5.59% for 20 years in a high-grade bond, I can get the same amount.” My Initial Thoughts As long-term care advisors, we know that in a perfect world — with an accurate crystal ball to predict the future — it would be great if a client could predict when they will need care. Unfortunately, we cannot depend on that happening. The way I see it, the “self-funding” strategy is susceptible to three big risks: A lower-than-expected rate of return. Higher-than-expected tax rates at claim time. The inability to attain the...

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Suit by Estate of Dancer Who Died From Peanut Allergy Blames Mislabeled Cookie

Article 0 Comments WATERBURY, Conn. (AP) — The estate of a young dancer who died after eating a mislabeled cookie containing peanuts has filed a wrongful death lawsuit, claiming the failure to properly label the package was grossly negligent. Órla Ruth Baxendale, 25, died Jan. 11 after eating a Florentine cookie sold by grocery retailer Stew Leonard’s and suffering an anaphylactic reaction, according to the lawsuit. Baxendale, who had a severe peanut allergy, had moved to New York City from England to pursue a career as a dancer and was in “the prime of her life,” according to the lawsuit filed last Thursday in Superior Court in Waterbury. The batch of holiday cookies sold at Stew Leonard’s stores in Danbury and Newington in Connecticut late last year were later recalled. The cookies were produced by the Long Island-based wholesaler Cookies United and labeled with the Stew Leonard’s brand name, state officials said. Both companies are named in the lawsuit, along with several Stew Leonard’s employees. Failure to properly label the cookie package prior to sale “was grossly negligent, intentional, reckless, callous, indifferent to human life, and a wanton violation as the manufacturer and seller were required under the law to...

GMS chooses CoverGo as its new core health insurance platform to enable digital transformation 0

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GMS chooses CoverGo as its new core health insurance platform to enable digital transformation

Regina, SK (May 27, 2024) – Group Medical Services (GMS), a leading health insurance company in Canada, and CoverGo, a leading global no-code insurance SaaS platform for health, life, and P&C, are joining forces to digitize GMS’s entire health insurance ecosystem. GMS adopts CoverGo as its end-to-end modular core insurance platform for employee benefits providing comprehensive health, dental, and life coverage, as well as for individual health and travel insurance across Canada. Leveraging CoverGo’s patented no-code product builder and advanced policy and claims management capabilities, GMS is able to launch customized products at record speed, increase sales through digital distribution, lower operating costs, and provide a better customer experience. Mark MacLeod, President and CEO of GMS said, “We are excited to partner with CoverGo to accelerate our digital transformation, futureproof our business, and provide an exceptional experience for our customers. CoverGo’s innovative platform coupled with health insurance expertise of the team has made our collaboration with CoverGo efficient and smooth since 2023.” Tomas Holub, Founder & CEO of CoverGo said, “We are delighted to assist GMS on their journey towards digital transformation. GMS has shown a clear commitment to digitize and streamline their health insurance ecosystem in an efficient and...

CSIO Welcomes New Insurance Provider Allianz Global Assistance 0

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CSIO Welcomes New Insurance Provider Allianz Global Assistance

Toronto, ON (May 27, 2024) – CSIO is pleased to welcome leading travel insurance provider Allianz Global Assistance (Allianz) as a new insurer member. Allianz provides its customers and partners with value-added travel insurance and assistance services, including licensed consumer sales, 24/7 emergency assistance, medical case management, claims adjudication, and medical provider network management. Allianz will be using the CSIOnet platform to quickly deliver electronic documents (eDocs) and messages to its broker partners across Canada. This will enable brokers to receive Allianz policy documents and information directly in their Broker Management Systems. CSIOnet is an established, widely adopted platform on which data and documents are exchanged between insurers and brokers in the Canadian property & casualty insurance industry. Allianz will also be employing CSIO’s My Proof of Insurance (MPOI) solution to email customers their travel policy documents and digital travel cards. MPOI is Canada’s leading solution for securely sending digital policy documents including proof of auto insurance (eSlips) to customers. “Allianz Global Assistance is thrilled to announce our new partnership with CSIO,” said Chris Van Kooten, CEO, Allianz Global Assistance, “This collaboration allows us to integrate technology solutions to better serve both our broker partners and their customers – making...

Axis Insurance acquires Magnes Group, expanding its Canadian presence 0

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Axis Insurance acquires Magnes Group, expanding its Canadian presence

Toronto, ON (May 22, 2024) – Axis Insurance Managers Inc. (Axis Insurance) is pleased to announce that it has acquired The Magnes Group Inc. (Magnes). Axis Insurance made its initial investment in Magnes in 2015. Founded in 1933, Magnes is a leading independent insurance brokerage with over 100 staff across three offices in Oakville, ON, North York, ON and Longueuil, QC.   Its team specializes in commercial insurance, personal insurance, and life and employee benefits. Over the coming months, Magnes will be incorporated into the Axis organization with integrated practice groups such as Aviation, Professional & Financial Services, Personal Insurance, Life and Benefits, and Transportation.  The leadership teams of both organizations have begun collaborating to establish a seamless organizational structure. “We are thrilled to see the fulfillment of a vision established nine years ago with Axis” said Andy Sloan, President and CEO of Magnes. “Combining the Magnes and Axis teams will provide our professionals with the enhanced resources and expertise to continue to ensure the best results for our clients.” Established in 2010, Axis Insurance has a team of over 300 experienced professionals with a strong presence across Canada. Axis analyses business and personal risks, providing strategic advice and solutions that...

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Report Claims ‘Utter Chaos’ Including Drunk Deputies During Search for Maine Gunman

Article 0 Comments The search for the gunman behind last October’s mass shooting in Maine was marked by “utter chaos,” including one group of deputies who had been drinking nearly crashing their armored vehicle and others showing up in civilian clothes who could have been mistaken for the suspect, according to an after-action report obtained Tuesday by The Associated Press. The Portland Police Department report describes how officers rushed to secure the scene where the gunman abandoned his car after killing 18 people in the state’s deadliest shooting. Tactical team leader Nicholas Goodman said in the report that the officers who showed up without any orders risked doing more harm than good. A second tactical team that was also responding to the incident, from Cumberland County, nearly crashed their vehicle into his, according to Goodman. “It locked up its brakes and came to an abrupt halt with the tires making a noise a large 18-wheeler makes when it stops abruptly while carrying a copious amount of weight,” he wrote. “I’d estimate the armored car came within 20-30 feet of striking our armored car and most likely killing a number of us.” “You could smell the aroma of intoxicants” wafting from...

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9 Groups File New Suit Challenging DOL Fiduciary Rule Regs

What You Need to Know The coalition that filed the new suit includes the ACLI, IRI, Finseca, NAFA, NAIFA and several NAIFA chapters. Another group filed a separate suit against the fiduciary rule regulations May 2. Appeals from either case would flow to the federal appeals court that rejected an earlier Labor Department fiduciary rule effort. Nine insurance trade groups today joined to file a suit attacking the U.S. Labor Department’s new fiduciary rule regulations in the U.S. District Court for the Northern District of Texas. The groups have accused the department of rushing to adopt the new retirement investment advice fiduciary definition regulations without meeting federal Administrative Procedures Act requirements, and without analyzing impact data in an adequate way while conducting a cost-benefit analysis. The plaintiffs are the American Council of Life Insurers, the Insured Retirement Institute, the National Association for Fixed Annuities, Finseca, the National Association of Insurance and Financial Advisors, and NAIFA-Texas, NAIFA-Dallas, NAIFA-Fort Worth and NAIFA-POET. Labor Department representatives did not immediately respond to an email seeking comment. The background: The Labor Department has been working to impose a fiduciary rule on sellers of non-variable indexed annuities for years. A fiduciary standard requires the people and...

Why AI Governance is Important for P&C Insurers 0

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Why AI Governance is Important for P&C Insurers

By Tom Benton & Vinay Shah, ReSource Pro — The artificial intelligence landscape has changed significantly over the past year, presenting both fresh opportunities and new challenges to the property & casualty insurance industry. As AI continues to evolve, especially through advancements like GenAI, insurance companies must create strong governance frameworks to keep AI use transparent and ethical. What is AI governance? First, let’s establish the core of AI governance. An effective approach to governance includes a set of processes and frameworks that ensure regulatory compliance throughout the AI lifecycle – while still allowing room for innovation. It should also address key concerns like ethical violations, transparency, explainability, and bias. Managing these concerns through guidelines and structure allows us to realize the full potential of AI, with humans still in the loop. How are carriers managing AI today? Many insurance carriers have been using AI for decades and have a clear understanding of responsible AI management. However, with the emergence of tools like GenAI, organizations must take into account new issues, like content accuracy and improper outputs. These considerations further complicate developing governance frameworks. For most carriers (80%), the potential legal consequences of AI are the greatest cause for concern....

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Medicare’s Role In Supporting Senior Mental Health Needs

Mental Health Awareness Month in May highlights the importance of Medicare’s mental health services benefits. This concern came up for me recently, when Michael, a 72-year-old former marketing executive, told me that he was feeling isolated and anxious, especially after his wife’s passing. Michael’s question: Does Medicare provide support for mental health services, and, if so, how can enrollees use the mental health services benefits? The short answer: Yes. Medicare now covers a wide range of mental health services. The Centers for Medicare and Medicaid Services has posted a 24-page guide to Medicare’s mental health benefits. The Standard Benefits Preventive services: Medicare Part B covers annual depression screenings. Medications: Medicare Part D covers the medications used to treat mental health conditions. Outpatient treatment: Years ago, health insurers skimped on coverage for mental health services delivered outside of institutions. Today, Medicare Part B covers psychiatric evaluations, individual therapy, group therapy and other services provided in outpatient settings. Telehealth services: Medicare is now more likely than in the past to cover counseling and other services provided through telehealth systems. That can be especially helpful for clients in remote or underserved areas.

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Why Are You Still Selling Life Insurance With Lifetime Guarantees?

What You Need to Know Some clients may need coverage to stay in force at age 90. Some may have tight budgets and more flexible coverage duration needs. The author suggests helping clients weigh the costs and the benefits carefully. Permanent life insurance comes in many forms. Too often, however, clients are presented as if only two types exist: “guaranteed” and “non-guaranteed.” Whether intentional or not, framing the choice this way creates a false dichotomy and too often leads clients toward solutions that don’t best meet their needs. In my experience, the most successful producers take a different approach. The first thing they acknowledge is that all products have guarantees, and all products have risks. It does not serve anyone to pretend otherwise. For example, a product presented as the “guaranteed” option may come with the risk of limiting a client’s ability to adjust their premium funding in the future, or with the risk that the cost is substantially higher than alternatives. On the other hand, a product presented as “non-guaranteed” might actually guarantee coverage for decades while providing compelling cash value growth potential relative to the “guaranteed” alternative. The second thing successful producers do is keep it simple, but...