DONOVAN INSURANCE SOLUTIONS

se U n a C u o Y ws e N e c n a r Insu
Volume 3 Issue 10 October 1, 2013

D i d n t yo u j u s t s ay t h at

by Paul Donovan

Inside this issue:

Dj vu is a French phrase that means, already seen. It describes the uncanny sense of familiarity we sometimes have when going through an experience for the first time. Dj Vu Many of us remember the 1990s when President Bill Clinton was our Commander in Top News Stories Chief. We also remember his wife, later Senator and eventually Secretary of State, Hillary Clinton. In 1993, as the First Lady, she headed a task force on healthcare that each US citizen and permanent resident alien to become enrolled in a qualified health plan and forbade their disenrollment until covered by another plan. It listed minimum
Benefits Update Chronicles 1 2 2 3 3 4 4

proposed sweeping changes to our healthcare system. The Clinton health plan required Encouragement
Money Trivia Donovan Ins. New

coverages and maximum annual out-of-pocket expenses for each plan. It proposed the Offices service schedule. People below a certain set income level were to pay nothing. The act also listed

establishment of corporate "regional alliances" of healthcare providers to be subject to a fee -for- Accidents and Rate
increases

funding to be sent to the states for the administration of this plan, beginning at $13.5 billion in 1993 and reaching $38.3 billion in 2003. Flash forward twenty years and Im having dj vu. Today marks the implementation of the Affordable Health Act (Obamacare). Unfortunately, there is still confusion over how the plans work, who is eligible and how much it costs (well discuss further on pg. 2). The misunderstandings are natural when a law adds more than 10,000 pages of new regulations, Congress is gridlocked over funding of the program and media bias is all over the map. Lets look at just one of these issues: Why do U.S. citizens have to comply with a law, yet Congress is exempt? Section 1312 of the law says Congress has to enroll in the healthcare exchanges on the philosophy that whats good for the public is good enough for Congress. Furthermore, no subsidies will be issued to people making more than $92,000 per year. However, in August President Obama authorized a special subsidy to pay for members of Congress (congressman/women make $174,000 per year) that no one else gets. The House attached to their bill to fund the government, a provision stripping away the special congressional subsidy. However, the Senate wants the perk and its a major reason for their unwillingness to compromise (dont they want to live under the same law as everyone else?) The blame game continuous and you get the idea. The old adage is true, if you dont stand for something youll fall for anything. And, like empires throughout history, if we dont learn from the past, (dj vu) we will be doomed to repeat it. Theres nothing new under the sun its all been tried before. (Ecclesiastes 1:9)

Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master. George Washington

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INSURANCE NEWS YOU CAN USE

Top News for October 2013

Effective October 1 2013, the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) goes into effect. Many states have filed suit over the discontinued subsidies from the government, citing large and excessive premium increases. This trend will continue to dampen housing sales in an already slow economy. We will keep you posted with the updates.

Property losses from flooding in Colorado will exceed $2 billion dollars. The mixture between commercial and residential losses are about equal. Earlier wildfires ravaged the north western states which enhanced the risk of flooding. Stockton, CA, Detroit, MI and San Bernadino, CA are some of the major cities that have declared bankruptcy throughout the U.S. For a map of additional cities cut and paste to www.governing.com/gov data/municipal-cities-counties-bankruptcies-and-defaults.html. The lack of fiscal accountability has left many municipal bond holders and vendors with no recourse for restitution.

Florida's New Texting While Driving Ban Takes Effect Oct. 1. It is a secondary offense, however, drivers must be stopped for a separate alleged traffic violation before being ticketed for texting while driving.

Time is the only commodity we all get an equal share of, how we spend it determines its worth. Paul Donovan Benefits Update
Effective today (besides the government shutdown) we thought we would answer some common questions:

Where does one go online in FL to sign up within the exchange and receive a quote?

http://www.healthinsurance.org/florida-state-health-insurance-exchange 2. What happens if I dont have a job and am older than 26? Depends on what state you live in, Do you have children and if youre a newcomer to the US or a citizen. Law says at age 26 you have to have insurance (or pay the fine of $95 or 1% of your gross incomewhichever is greater, on your taxes next year when you file). If you dont have a job you can apply for Medicaid as a single adult. Half of the states you wont qualify (unless you have kids or are pregnant) the other half you will (check your local Medicaid office). If youre a newcomer to the US (within past 5 years) and are legally here, you can go into the exchanges and get a private health plan subsidized by the government. 3. What about pre-existing conditions, are they covered and will that cost me? There is no more underwriting of health as of 1/1/2014. There are no surcharges for health conditions unless you already have a health plan and have been grandfathered in. 4. What Catastrophic plans are offered? Under age 30 you can purchase a catastrophic less expensive plan if you have financial hardship. However, you will pay more out of pocket expenses when you start utilizing the plan. 5. Are children automatically covered? Children are covered under parents plans up to age 26 then they must convert to an adult individual plan. They can also obtain coverage through their employer, spouse or in the exchanges unless they turn age 26 after 3/31/2014 (the deadline for enrollment). If age 26 after 3/31/2014 then you will not be penalized when you enroll. 6. Is Dental covered? Is included under the essential health benefits for children only (not adults) but adults can purchase coverage. For more information on how The Affordable CareAct works you can also go to: www.healthcare.gov

Before going to warpray once, before going to seapray twice, before getting marriedpray three times. Old Russian Proverb

VOLUME 3 ISSUE 10

PAGE 3
By Paul Donovan

En courag em en t Chroni cl es

Going to bed the other night, a woman noticed people in her shed stealing things. She phoned the police but was told there was no one in the area to help. The policeman said they would send someone over as soon as possible. She hung up. A minute later she called the police again. Hello', she said, I called you a minute ago because there were people in my shed. You don't have to hurry now, because I've shot two of them dead. Within five minutes there were half a dozen police cars in the area, plus helicopters and an armed response unit. They caught the burglars red-handed. One of the officers said: I thought you said you'd shot two of them.' To which she replied: 'I thought you said there was no one available. Good leaders realize that urgency and motivation needs to be communicated appropriately. Actions flow from intentions and communicating why you are doing something, will help motivate others to accomplish the mission in a timely fashion.

If you owe $1,000 youre a piker, if you owe $100,000 youre a businessman, if you owe $1, 000,000 youre a tycoon, if you owe $1 Billion youre a magnate, if you owe $1 Trillion youre the government. Money Trivia you may or may not know
by Paul Donovan

1. The United Kingdom, Denmark & Sweden (each a part of the Eurozone) all share at least one thing in common (other than no tan lines)what is it? 2. Which term describes the rate at which each dollar changes hands, as it circulates hither and yon, and then yon and hither? A. Turkey Trot B. Gallup C. Altitude D. Velocity 3. The top 25 billionaires in the U.S.A. could feasibly: A. Pay off approximately 10% of our national debt. B. Pay off a whopping 50% of our national debt. C. Reach halfway to the moon, if placed atop their money, stacked in single dollar bills. D. Kiss your big (fill in colorful adjectives of your choice) __________. 4. The Massachusetts Bay Colony issues the first paper money in the Americas -- and the year is: A. 1660 B. 1690 C. 1776 D. 1793 5. Without looking, what is on the back of a dime? A. A sconce B. A torch C. A candle D. A deer

6. She was the only woman whose portrait ever appeared on U.S. paper money -- a silver certificate, specifically. She was: A. Martha Washington B. Mary Lincoln C. Mammie Eisenhower D. Dolly Madison 7. The term that refers to the relative ease of converting various assets into cash is called: A. Mobility B. Morbidity C. Liquidity D. Divorce 8. The first credit card came out in what year and was produced by what company? 9. What country was the first civilization to create paper money. 10. How many times does The United States of America appear on a $100 bill? 11. The number of paper bills currently in circulation in the U.S. is how many? 12. How much salary does the United States President make in a year? 13. The U.S. dollar is what sovereign independent South American countrys, official currency? 14. If you stacked $100 bills on top of each other, how high would a pile containing $1,000,000 be?

If your outgo exceeds your income, then your upkeep will be your downfall. John C. Maxwell

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Breaking News for Donovan Insurance Solutions

Effective October 1, 2013 Donovan Insurance Services has moved exactly one door south of our prior location. Our new offices are located at 1 East Tarpon Ave in the center of downtown Tarpon Springs. This move has allowed us to double the space of our office and accommodate growth. Our open house will be 11/20/13.

We can now be reached at our new offices 1 East Tarpon Ave Tarpon Springs, FL 34689 727-935-4858 (Office) 877-226-9304 (Fax) 727-656-5371 (cell) www.DonovanInsuranceSolutions.com E-mail: Donovan.solutions@gmail.

What is the difference between a man that doesnt read and one that cant read Nothing! Mark Twain How Much will my rates go up after an accident?
BY Paul Donovan

When shopping for car insurance, drivers choose mainly based on price, service and reputation. When figuring out premiums, your location, age, vehicle, and driving record, as well as the "loss experience" (meaning claims made) of drivers similar to you, affect the rates. However, one element that's often overlooked is a company's "surcharge schedule" a predetermined premium increase that's charged if you cause a car accident. Car insurance companies are required to file rates with each state insurance department where they operate, and include how they're going to determine rates after a claim is made. Unfortunately, these schedules are extremely difficult to read. The surcharge schedule lists points and percentages (although, you often have to do your own math to figure how much of an increase you would pay percentage-wise). Naturally, if another vehicle, property damage or person was involved, you must report the claim. Yet, its a fear most people experience when determining if they should submit a claim or not. How much will my insurance rates go up? Heres a simple rule of thumb generalization. Many car insurance companies follow the Insurance Services Office's (ISO) standard of increasing a premium by 20 to 40 percent of the insurer's base rate (which is the average rate charged in the state before discounts and other adjustments, plus the insurance company's claims -processing fee). According to the ISO, for multicar policies the surcharge is 20 percent of the base rate for the first two vehicles on the policy, and 40 percent for a single-car policy. Example: You insure two cars at a premium of $300 each and the insurer's base rate is $400. After an accident, you may get a surcharge of $80 (20 percent of $400) on both, so your total surcharge would be $160 (an increase of about 27% on the policy). While a car insurance policy may look like a bargain initially, a high surcharge level could send your rate through the roof after an accident. Surcharges vary by state and insurance company, and some penalize you for moving violations while others focus only on "chargeable accidents" (meaning at-fault accidents for which your insurance company must pay out more than $500 or $750 per accident after your deductible has been applied). Its can be difficult, so pay attention, read your policy and ask your agent for help.

May you be in heaven a half-hour before the devil knows you are dead. Irish Toast
Trivia Answers from Page 3: 1. They have decided NOT to switch to the Euro currency, 2. D -Velocity, 3.A, pay off 10% off our debt, 4.B. 1690, 5.B. A torch , 6. A. Martha Washington, 7. C. Liquidity (although a case can be made for divorce ), 8. American Express 1951, 9. China, 10. Twelve times, 11. Seven, $1, $2, $5, $10, $20, $50 & $100, 12. $400,000 salary, 13. Ecuador, 14. US bill is reportedly .0043 inches thick. A stack of 100 dollar bills totaling one million dollars would be 43 inches tall. It takes 10,000 such bills to equal a million dollars. 10,000 X .0043 = 43 inches. = 3 feet 8 inches.