California Insurance Lawyer Blog

At Kantor & Kantor we hear from people every day about their troubles in trying to obtain benefits under Long Term Disability, Long Term Care, Health and Life insurance policies. We created our Blog as a way to try and share some of the stories we hear, as well as the news being made in these and other related insurance areas.

Well, it seems people are reading our Blog and getting a benefit out of our efforts, all of which makes it even more worthwhile. Our Blog was just recently named as one of the Top 50 Legal Blogsites by the LexisNexis Insurance Law Center. This is what they had to say: "These blogsites contain some of the best writing out there on insurance on coverage, catastrophic loss, regulatory compliance, life insurance, health care and insurance issues in general,...They contain a wealth of information for the insurance community with timely news items, practical information, expert analysis, frequent postings and helpful links to other sites. These blogsites also show us how insurance issues interact with politics and culture. Moreover, they demonstrate how bloggers can impact the world of insurance law and insurance industry issues.”

Thanks LexisNexis. We will keep on blogging!

Posted by Kantor & Kantor LLP | Permalink | Email This Post

Posted In: ERISA , Health Insurance , Insurance Bad Faith , Life Insurance , LongTerm Care Insurance , LongTerm Disability (LTD) Insurance

Bookmark:

Insurers throughout the country are asking state insurance regulators to allow price increases for long-term care insurance. Essentially, they are admitting they made mistakes early on by pricing the policies too low in order to compete for business. Now, faced with an aging baby boomer population, these companies are concerned they will be paying out more in claims than they anticipated. They want to counter this by charging their customers more money. An article from TheStreet.com reports in the past year, Genworth Financial requested increases ranging from 8% to 12% on some policies already owned by its customers; John Hancock announced a 14% increase in some existing policies in May 2008; and this week, MetLife announced it will raise annual premiums an average of 18% for policy holders who were younger than age 70 when they purchased policies in the years from 1998 through 2005.

Financial consultant and columnist Terry Savage queries, “isn't it the job of the insurance company to assess those trends that impact pricing before they go to market -- whether they be the rising cost of providing benefits or the cost of hedging against low interest rates that impact the investment of their reserves?”

We agree with Savage that insurance companies could be doing much better with customer service in selling, servicing and particularly in paying claims.

Still, Savage is an advocate for the purchase of long term care insurance, especially when compared to the alternative of relying on the government. She cautions against relying on government-funded programs such as Medicare to pay for long-term care because quality care options through government programs are shrinking rapidly.

And remember, the need for long-term care may arise long before you or your spouse even reach retirement or “long term care” age. Illnesses such as multiple sclerosis, fibromyalgia, Alzheimer’s, AIDS, lupus and a host of other debilitating ailments too numerous to name here may require assisted living or in-home care for years. We know because we help people with these issues every day.

With all the roadblocks policyholders often face when dealing with insurers – including having to hire lawyers like us to fight for their benefits – it’s still probably better to have some insurance than none at all.

Posted by Kantor & Kantor LLP | Permalink | Email This Post

Posted In: LongTerm Care Insurance

Bookmark:

Health Net Inc. has now joined the growing list of health insurers to reinstate policies it canceled after policyholders got sick, reports the Los Angeles Times. In the settlement, called the first of its kind because it involved both the state Department of Managed Healthcare and the Department of Insurance, reinstated 926 policies and forces the company to pay $3.6 million in penalties and $14 million in restitution for unpaid medical bills. Heath Net admitted no wrongdoing.

Critics are calling the deal only a partial solution, and we agree. As a result of the settlement, individual policyholders with legitimate suits against Health Net may be persuaded to give up their rights to seek damages for economic losses and emotional distress.

Health Net CEO Jay Gellert calls the deal an opportunity “to move forward” and help the state overhaul the healthcare industry.

What do you think? Are these settlements letting wrongdoers off the hook by allowing them to save millions in court costs, or is it more important that insurers are allowed the flexibility to fix past mistakes and perhaps do a better job in the future?

Posted by Kantor & Kantor LLP | Permalink | Email This Post

Posted In: Health Insurance , Insurance Bad Faith

Bookmark: