Insurance and Welfare Benefits Education Report 2007

The following report is a summary of the insurance and welfare benefits education activities in 2007. 2007 was the first full year that DAS-HRE had a full-time health and welfare benefits educator.

Northeast Iowa Schools Insurance Trust, June 30, 2002 & June 30, 2003

Other Audit Reports

Investigation of the State Insurance Division's Oversight of Clinton Memorial Cemetery & Funeral Home, Inc, 1999

Investigative report produced by Iowa Citizens' Aide/Ombudsman

Influence of the Premium Subsidy on Farmers’ Crop Insurance Coverage Decisions, April 2005

The Agricultural Risk Protection Act greatly increased the expected marginal net benefit of farmers buying high-coverage crop insurance policies by coupling premium subsidies to coverage level. This policy change, combined with cross-sectional variations in expected marginal net benefits of high-coverage policies, is used to estimate the role that premium subsidies play in farmers’ crop insurance decisions. We use county data for corn, soybeans, and wheat to estimate regression equations that are then used to obtain insight into two policy scenarios. We first estimate that eventual adoption of actuarially fair incremental premiums, combined with current coupled subsidies, would increase farmers’ purchase of high-coverage policies by almost 400 percent from 1998 levels across the three crops and two plans of insurance included in the analysis. We then estimate that a return to decoupled subsidies would decrease farmers’ high-coverage purchase decisions by an average of 36 percent.

An Investigation of User Costs and Benefits of Winter Road Closures, June 2005

This project explores the user costs and benefits of winter road closures. Severe winter weather makes travel unsafe and dramatically increases crash rates. When conditions become unsafe due to winter weather, road closures should allow users to avoid crash costs and eliminate costs associated with rescuing stranded motorists. Therefore, the benefits of road closures are the avoided safety costs. The costs of road closures are the delays that are imposed on motorists and motor carriers who would have made the trip had the road not been closed. This project investigated the costs and benefits of road closures and found that evaluating the benefits and costs is not as simple as it appears. To better understand the costs and benefits of road closures, the project investigates the literature, conducts interviews with shippers and motor carriers, and conducts case studies of road closures to determine what actually occurred on roadways during closures. The project also estimates a statistical model that relates weather severity to crash rates. Although, the statistical model is intended to illustrate the possibility to quantitatively relate measurable and predictable weather conditions to the safety performance of a roadway. In the future, weather conditions such as snow fall intensity, visibility, etc., can be used to make objective measures of the safety performance of a roadway rather than relying on subjective evaluations of field staff. The review of the literature and the interviews clearly illustrate that not all delays (increased travel time) are valued the same. Expected delays (routine delays) are valued at the generalized costs (value of the driver’s time, fuel, insurance, wear and tear on the vehicle, etc.), but unexpected delays are valued much higher because they result in interruption of synchronous activities at the trip’s destination. To reduce the costs of delays resulting from road closures, public agencies should communicate as early as possible the likelihood of a road closure.

Livestock Revenue Insurance, November 2000

This study outlines several possible structures for livestock revenue insurance. The policies take the form of an exotic option—an Asian basket option. The actuarially fair premiums for these policies are equal to the prices of the options they represent. Due to the complexity of pricing Asian basket options, we have combined two techniques for pricing options to reach the actuarially fair premiums. Projected premiums, producer welfare, and program efficiency are evaluated for the insurance products and existing market tools. Using efficiency ratios and certainty equivalent returns, we compare the insurance policies to strategies involving existing futures and options.

Get a GRIP: Should Area Revenue Coverage Be Offered through the Farm Bill or as a Crop Insurance Program? 2007

The successful expansion of the U.S. crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by members of Congress and others in preparation of the 2007 farm bill is to simply remove the “ad hoc” part of disaster assistance programs by creating a standing program that would automatically funnel aid to hard-hit regions and crops. One form such a program could take can be found in the area yield and area revenue insurance programs currently offered by the U.S. crop insurance program. The Group Risk Plan (GRP) and Group Risk Income Protection (GRIP) programs automatically trigger payments when county yields or revenues, respectively, fall below a producer-elected coverage level. The per-acre taxpayer costs of offering GRIP in Indiana, Illinois, and Iowa for corn and soybeans through the crop insurance program are estimated. These results are used to determine the amount of area revenue coverage that could be offered to farmers as part of a standing farm bill disaster program. Approximately 55% of taxpayer support for GRIP flows to the crop insurance industry. A significant portion of this support comes in the form of net underwriting gains. The expected rate of return on money put at risk by private crop insurance companies under the current Standard Reinsurance Agreement is approximately 100%. Taking this industry support and adding in the taxpayer support for GRIP that flows to producers would fund a county target revenue program at the 93% coverage level.

Understanding Insurance Company Financial Stability Ratings, January 2007

Choosing a financially strong insurance company is important when buying health insurance. You want the company to still be in business when you have claims, which can be 20 to 30 years from now. Insurance companies selling insurance in Iowa have met the minimum legal standards to be licensed by the State of Iowa Insurance Division. This licensure doesn’t mean the company has a high financial stability rating. Several independent rating agencies evaluate the financial stability of insurance companies. The rating for an individual insurance company is an opinion as to its financial strength and ability to pay claims in the future. When evaluating a company, a rating agency may consider a company's balance sheet strength, operating performance and business management and strategies.

Getting Ready to Retire: Health Insurance Issues, December 2006

Before making the decision to retire, understand the health insurance options available to you (and your spouse if you are married). Which questions you need to ask depends on: • how old you are. • how old your spouse is. • whether you or your spouse is eligible for Medicare. • whether you or your spouse will continue to be employed. • how many employees the employer has.

2007 Medicare Deductibles, Coinsurance and Premiums, 2007

Medicare Deductible, co-insurance and premiuns form.

Events That Guarantee Your Right To Buy Medicare Supplement Insurance, March 2007

You have a six-month open enrollment period when you are enrolled in Medicare Part B for the first time at age 65 or older. The six-month period begins the date your Medicare Part B begins. During your open enrollment period: • You cannot be turned down for any plan (A-L) being sold in Iowa. • You cannot be charged a higher premium based on your health. • You will not have a waiting period before benefits are paid for pre-existing health conditions IF you had previous health insurance coverage, AND you apply within 63 days of the end of previous health insurance, AND you were covered for at least 6 months under that health plan.

COBRA: Continuation of Employer Group Health Insurance, March 2007

COBRA stands for Consolidated Omnibus Budget Reconciliation Act *COBRA is not insurance; it is the law, since 1985. COBRA allows employees and their dependents to continue employer group health insurance for several months when that insurance would usually end. *Insurance plans under COBRA are private health plans, not plans sold by the government. *The U.S. Departments of Labor and Treasury enforce COBRA.

Long-Term Care Insurance Companies, September 2007

The companies on this list have been approved to sell long-term-care insurance in the State of Iowa. Customer service numbers are listed for each company. Please open pdf for the numbers.

Consumer Advisory Bulletin, Credit Insurance: Is it a Good Idea for You?, June 2005

The Attorney General’s Consumer Protection Division receives hundreds of calls and consumer complaints every year. Follow these tips to avoid unexpected expense and disappointments. This record is about: Credit Insurance: Is it a Good Idea for You?

COBRA: Continuation of Employer Group Health Insurance, 2007

Medicare Deductible, co-insurance and premiuns form, and rescription drugs plans.