This Week’s Round Up – Insurance News Broadcast for April 4th, 2013
See Notes and Highlights of The Stories Featured in Video:
Study claims health insurance rate shock may be coming
Health insurance companies throughout the U.S. have been warning of the impending rate shock that could be spurred by the Affordable Care Act.
According to the study, health insurance companies are expected to pay out an average of 32% more on payouts for medical claims for individual consumers.
Federal officials are questioning the accuracy of the study suggesting that the study does not account for the “big picture,” and that many provisions of the Affordable Care Act exist to mitigate the rise of health insurance premiums.
Flood insurance revisions may be more lax for New Jersey
In early March, the Federal Emergency Management Agency announced revisions to its flood maps that could have severe implications for many properties in New Jersey. These revisions have been staunchly opposed by Governor Chris Christie.
Governor Christie has been a very vocal critic of the National Flood Insurance Program, which accounts for the majority of flood insurance coverage throughout the country, calling the program ineffective.
FEMA appears to be responding to the concerns of Governor Christie, as the Governor announces that the agency is showing signs of abandoning its aggressive revisions to New Jersey’s flood maps.
Homeowners insurance in for some turbulence in Texas
The Texas Windstorm Insurance Association has been facing significant financial troubles in recent years and state officials are looking to remedy these problems as soon as possible.
The impact of recent natural disasters has put heavy strain on the insurance program, which relies heavily on capital provided by private insurance companies.
Lawmakers are meeting with the program’s governing board in order to work on solution to the structural problems that have caused problems for the state-run insurer.
Auto insurance rates are on the rise for Michigan drivers
Reports from the Michigan catastrophic Claims Association claim that the cost of auto insurance will increase by an average of 6% throughout the state.
The organization cites an expected increase in car accidents this year as a contributor to the rate increase.
Michigan’s no-fault auto insurance laws are also suspected as influencing insurance rates throughout the state.
Life insurance companies are the focus of a new law in Montana
Governor Steve Bullock has just signed a new bill that will require that life insurance companies always search for policy beneficiaries when the policyholder has died.
The bill was created to address concerns regarding life insurance companies being accused of not putting in enough effort to find beneficiaries in order to avoid offering benefits.
The bill aims to assist the residents of Montana in being able to receive the benefits that are due.
