-------------------------------
“Ask Jeff" is a weekly post made on the RyanAgency.com Blog.
Submit an insurance-related question to “Ask Jeff”.
-------------------------------
Why is insurance confusing?
August 19, 2016
The main reason for confusion surrounding Insurance Policies may be surprising. Insurance requires the use of what we call policies. Policies are essentially a promise delivered through the use of a legal contract. A legal contract that is intended to pay for a myriad of claim scenarios and circumstances. These contacts must therefore cover a broad range of diverse situations Continue Reading
Insurance requires the use of what we call policies. Policies are essentially a promise delivered through the use of a legal contract. A legal contract that is intended to pay for a myriad of claim scenarios and circumstances.
These contacts must therefore cover a broad range of diverse situations and navigate conditions following a loss. Policies must provide clear distinctions about:
Insurance contracts of all stripes have evolved through time, experience and case law. Though companies have tried to write them in more understandable language, they must be crafted in such a way as to stand up to legal scrutiny, compliance with state statutes and provide the benefits expected.
In addition, insurance policies are considered " contracts of adhesion " , meaning that the insurance company (insurer) controls the creation of the document. The purchaser (insured) only has the power to refuse it. Because of that relationship, grey areas in the contract's language will fall in the favor of the insured .
It is ironic, but due to all the above:
is the main reason that insurance is so “confusing”.
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
The year 1962 was marked by historic events—from the Cuban Missile Crisis to the passing of Marilyn Monroe. But while the world focused on these headlines, Lee A. Ryan was working alongside his brothers on my grandparents' farm when an unexpected opportunity arose—an invitation to join the insurance business. With no prior experience, no clients, and limited resources, my dad took a leap of faith and partnered with Nationwide Insurance to start an agency from scratch. Operating out of his home on Karr Valley Road in Almond, NY, he built his business one relationship at a time (some of whom are still clients!), laying the foundation for what would become a lasting legacy.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
