IMT Insurance, a Midwest-based provider of personal and commercial insurance products, recently announced its list of 2022 IMT Gem Too Agencies, distinguishing Thams Agency LLC as one of the qualifying recipients.
IMT Insurance is proud to recognize Thams Agency LLC as a high-performing insurance agency within IMT’s six-state territory (Iowa, Illinois, Minnesota, Nebraska, South Dakota, and Wisconsin).
Each year, IMT Insurance awards the Gem Too distinction to only those agencies that demonstrate outstanding performance in the areas of rank, growth, loss ratio, and profitability. In 2021, Thams Agency LLC was one of the top IMT agencies to produce a positive premium growth. In addition, Thams Agency LLC also sustained a favorable loss ratio.
IMT Insurance is proud to partner with Thams Agency LLC to represent the IMT brand. It is the superior performance and unwavering commitment of Independent Insurance Agencies like Thams Agency LLC that enable IMT to continue to live up to their slogan, “Be Worry Free!”
Here at Thams Agency, we plan to keep up the momentum for 2022 and will continue to support our communities by helping to protect what matters most.
Who doesn’t want a new vehicle? Especially some of the newer 2022 cars coming up for release. If you are looking for a new vehicle, there are some things to keep in mind when it comes to insurance – but first, let’s check out some of the 2022 cars.
There is a good chance that the more you pay for your vehicle, the more you will pay in premium. Why? It would take more money to fix or replace your car in the case of an accident or theft. If you were driving a 2010 Toyota tundra & decide to upgrade to a 2022 Toyota tundra – chances are your premium will increase as newer cars simply cost more to insure.
Costs
Something to think about when it comes to repairs is car parts. There are variations between the base model and the high-end model that can cause differences in rates based upon repair costs. Also, depending on the manufacturer of the car, they may use specialized materials that drive up costs.
Another thing that is very cool and up and coming is electric vehicles, like the 2022 Ford Lightning. However, because they are so new and parts cost more, your premium will be higher.
Type of Vehicle
The type of vehicle you drive can also affect the premium. Larger vehicles like SUVs, such as the Jeep Grand Wagoneer, will do more damage to a third party in an accident than a small compact car.
Safety
The great thing about the newest 2022 cars, is the built-in safety features. The safer the vehicle, the less chance for injury for you and your passengers and less chance of paying costly medical bills. For example, the 2022 Acura MDX has a driver-assist feature called AcuraWatch. The car will give you a forward collision warning, automatic emergency braking, lane departure warning, lane-keeping assist, road departure mitigation, a blind-spot information system, and rear cross-traffic alert. Safety features are great on vehicles, but also very costly to repair after an accident.
Theft
As parts become scarcer for vehicles, theft is becoming more commonplace. Make sure that when you purchase insurance you buy physical damage coverage on your new vehicle, also known as comp and collision coverage. In the event your car is stolen, the insurance company will pay to have it replaced. When it comes to premiums, the insurance companies will look at how likely that specific vehicle is to be stolen. The ones that are more likely will go up in premium. According to Bankrate, “Full-size Ford pickup trucks are the most likely cars to be stolen across the U.S., taking the top spot as “most stolen” in 19 states and “second-most stolen” in 13 states.” So if you are looking into the 2022 ford maverick or 2022 ford lightning – that may be something the insurance company will consider.
2022 Cars Recap
There are plenty of variables that go into determining the auto insurance premium, and if you want to learn more, check out that post here. So if you are looking into 2022 cars, good for you! However, now you know what insurance companies take into account when determining premiums. If you are contemplating how much premium will be before you purchase a vehicle, reach out at team@thamsagency.com.
For the past two decades, health costs have increased each year. This happens for a variety of reasons, such as inflation or, say, a global pandemic. With that in mind, employers can bank on health benefit costs going up in 2022.
According to a PricewaterhouseCoopers (PwC) report, medical costs are projected to increase 6.5% in 2022. This is about average for the past decade. However, due to the pandemic, it is slightly lower than the 7% increase projected this year.
Yet, 6.5% is still a considerable increase, especially when so many budgets have been reallocated or slashed due to the pandemic. That’s why employers must think both strategically and creatively about how they can lower their health benefits expenses in 2022.
This article includes five ways to help reduce spending without compromising benefits quality.
1. Control Drug Spending
Drug prices are rising faster than any other medical service or commodity. Prices are now 33% higher than they were in 2014, according to GoodRx. This is a significant problem during inpatient procedures, where individuals aren’t usually given an option to select a generic medication—patients rarely know what drugs they’re given until after the fact. Even in routine prescription scenarios, employees may be prescribed name-brand medications simply due to physician preference.
Employers can educate employees on the price differences between name-brand and generic medications. Doing so can help employees understand that they can save money while still receiving the same quality treatment.
Additionally, employers that have self-funded health plans may consider introducing varying levels of prescription drug coverage. For instance, fully covering generic prescriptions or drugs used for chronic conditions. For higher levels (e.g., specialty drugs), employers may cover less of the costs. Employers that are fully funded aren’t able to set their prescription drugs coverage tiers, typically the prescription drug coverage is “set” plans. In those cases, the education of employees is a must to keep costs down. Ultimately, employers will need to determine what is the best route for their unique workplaces.
2. Encourage Active Health Benefits Participation
Beyond drug spending, employers can help limit overall health benefit costs by making employees active participants in their health care. This means encouraging employees to improve their health literacy, research treatments, and price shop.
Price shopping, in particular, should be easier in 2022, given the new hospital price transparency rule that takes effect on Jan. 1, 2022. Employees will now be able to see specific prices for procedures and other services. This incentivizes employees to educate themselves before making costly health decisions.
3. Offer Savings Accounts with Carryovers to help with Health Benefit Costs
Health plans with savings components are becoming more popular each year. That’s because these tax-advantaged savings accounts empower employees to control their own spending and improve their health literacy. The accounts include health savings accounts (HSAs), flexible spending accounts (FSAs), and others.
Many accounts allow for fund carryover year to year or allow employers to add that option onto their plan designs. Allowing carryover encourages employees to contribute more funds since they’re no longer “use it or lose it.” Since many employers match contributions up to a limit, more money added to these accounts means greater tax savings for everyone.
4. Embrace Virtual Health Options
One major takeaway from the COVID-19 pandemic has been that virtual solutions can offer high-quality outcomes. This is so true that many companies are allowing employees to work remotely permanently. Virtual health options are no exception to this trend.
There are countless telehealth services available these days. Individuals can connect with health professionals in just a few clicks—no waiting times or driving to a clinic. Additionally, individuals will not need to take large chunks of time off work, allowing for greater productivity. As such, telehealth solutions are often much less expensive than a typical in-person doctor visit. Even the Centers for Medicare and Medicaid Services (CMS) acknowledges the usefulness of telehealth services, seeking to expand access.
Employers can consider adding telehealth services into their plan designs. In some cases, it may be cost-efficient for employees to schedule a virtual health visit before an in-person appointment, under certain circumstances. In any case, having a telehealth option expands access to care and lowers expenses for everyone.
5. Consider Plan Funding Alternatives
A more drastic option for reducing health benefit costs is restructuring how plans are funded. For instance, a self-funded plan may be more cost-effective than paying a monthly premium for a fully insured plan. Other options include level-funding or reference-based pricing models, each of which carries its own set of administrative rules and legal constraints.
Funding decisions should not be taken lightly and should be based on several factors, such as the size of an organization, risk tolerance, and financial stability. Employee financial stability should also be considered, especially while the effects of the COVID-19 pandemic can still be felt. Employees may not be able to burden large premium increases, constraining some plan funding flexibility options.
Historically, employers have shifted costs onto their employees (usually through higher premiums) as a way to reduce spending. However, that trend is not expected to be widespread in 2022. Considering the tight labor market and how many individuals are struggling financially due to the pandemic, employers will likely be hesitant to shift too much of the burden. Doing so may cause employees to seek other jobs or simply forego preventive care, which can lead to chronic conditions and higher future health care costs.
Conclusion About Health Benefit Costs
Employers have a variety of ways in which they can help contain health care expenses. Choosing the right method will depend on unique employee populations and budgets.
Reach out to our benefits advisor, Jamie at jbramman@gmail.com to discuss your best options to help reduce health benefit costs.
Most people are at least a little bit familiar with what COBRA Continuation Coverage is and how it works. But did you know that COBRA requirements only apply to those employers that have 20 or more employees? So what about smaller employers (20 or fewer employees)?
What is Iowa Continuation Coverage
The State of Iowa has a law that requires employers with less than 20 employees that provides coverage under a group health policy to offer continuation coverage. Iowa Continuation provides continuation coverage to those employees whose coverage would otherwise end because of termination of employment. The law also provides coverage for covered spouses and/or covered dependent children of employees.
Iowa Continuation Coverage Eligibility
To be eligible for IA Continuation, an employee must have been covered under the group policy continuously for the 3 month period immediately preceding the termination. There is also eligibility for spouses and or dependents due to divorce/legal separation or employee death.
Employees are NOT eligible for Iowa Continuation if there was a break in coverage during the last 3 months OR they have been covered for less than 3 months. The employee would also be ineligible if they are or could be covered by Medicare or another group health policy.
How Iowa Continuation Coverage Works
If you are an employer, you must write a notice within 10 days after termination to let the employee know they have the right to continue coverage. Employees that wish to elect IA Continuation must request enrollment IN WRITING within 10 days of the date of termination or the date they were provided the notice, whichever is later.
The cost of Iowa Continuation is 100% of the full employee premium. An employer cannot charge an administration fee as COBRA allows. Like COBRA, the employee is responsible for paying the employer directly for IA Continuation coverage. Carriers will not accept payments directly from the employee. When it comes to premium, the employer is ultimately the one that picks the payment due date.
Iowa Continuation has a maximum length of 9 months, there are no options for extension. This form of coverage can be terminated for the following reasons: premium is not paid on time, an enrollee becomes Medicare eligible, an enrollee becomes eligible for another group health plan, if an enrollee is a former spouse and remarries, or the group discontinues the health plan.
Recap
Jamie Braman, our health insurance agent, wrote this blog because she constantly gets the question “How does Iowa Continuation Coverage work again?” If you read this post and you still have questions, please reach out. Insurance can be confusing, but we can take care of everything for you. Jamie would love to answer any of your questions. Please email her at jbramman@thamsagency.com.
Homeowners’ insurance may not be the solution to insuring properties you own. If you think you can add a property to your current policy, that is not the case. Why? There is a different policy called specialty dwelling insurance. This is because traditional homeowners insuranceexcludes coverage for properties that are not owner-occupied. To put it simply, if you don’t live at your property then it will be covered by specialty dwelling insurance.
Specialty Dwelling Scenarios
There are multiple scenarios where specialty dwelling insurance is necessary:
Rental Properties
Specialty Dwelling insurance is the only type of policy that will work for a rental property. There are certain coverages that you need as the owner of a non-owner occupied property that is only provided by a specialty dwelling insurance policy like for example Landlord Furnishings, and Tenant Liability.
Vacant Homes
Vacant homes can present all kinds of problems which is why they can be extremely difficult to insure. Most insurance companies want nothing to do with a property that is vacant. We can help you and go to work to make sure you get the insurance you need.
Seasonal & Vacation Homes
In many cases, in order to insure a secondary, seasonal, or vacation property, most companies require that you insure your primary residence with them as well. However, that isn’t always possible. An experienced agent can handle all of that for you.
Older Homes
If your home is extremely old and/or the market value is considerably lower than the cost to rebuild it, many insurance companies may hesitate to cover it. Why is that? Well, older or lower-valued properties present a number of problems, but we have access to specialty policies specifically for these types of homes.
Credit Problems
Some homeowners might not have strong enough credit to qualify for a “standard” homeowners policy. When this is the case, specialty dwelling insurance is the alternative.
Homes Under Construction
In some situations, your renovation, addition, or reconstruction project may require a specialty dwelling policy.
Specialty Dwelling Insurance Recap
Everyone’s situation is different when it comes to properties. Knowing if you need a dwelling policy can be easy for you… Let an agent do all of the work for you instead of shopping around yourself! All you need to do is set up a meeting or phone call to tell them the specifics of your property and lifestyle.
If you have any questions about what falls under a dwelling policy, reach out to our team! We would love to answer any questions you have. Please reach out at team@thamsagency.com.
There are so many moving parts to a homeowner policy! As a homeowner, you want to make sure you have the best coverage to protect the home you work so hard for. Homeowner insurance policies differ by which losses are covered, which coverages you choose, and what type of residence you own. Your insurance agent should take care of everything for you, but just in case, we put together the most common homeowner insurance coverages you can find on a policy.
7 Common Homeowner Insurance Coverages
Dwelling
This is the portion of your policy that covers the actual structure (main house). The cost to replace your home can fluctuate from time to time based on the cost of raw material and labor, and of course, supply and demand. Something our agency does is run a replacement cost analysis on your home to see how much it would actually cost if the worst happened and you had to rebuild.
Other Structures
This covers any structure on your property that is not permanently attached to your house. For example, fencing, driveways, sidewalks, and detached buildings like sheds, and garages. Usually, this coverage is 10% of whatever your Dwelling limit is, but can be increased if you need more coverage.
Personal Property
When it comes to your personal belongings like clothing, furniture, electronics, and appliances, personal property coverage kicks in. Basically, anything that would fall out of your house if you turned it upside down and shook out the contents.
Loss of Use
This covers your living expenses if you need to live somewhere else temporarily because your primary home is uninhabitable due to a loss. For example, let’s say you lost your house due to a fire. Loss of Use coverage would be used for hotel expenses up to your coverage limits.
Medical Expense
This covers medical expenses for guests if they are injured on your property, and in certain cases covers people who are injured off of your property. It does not cover health care costs for you or other members of your household.
Family/Personal Liability
Personal Liability Coverage applies if someone is injured or their property is damaged and you are to blame. The coverage generally applies anywhere in the world. When choosing your liability coverage limits, consider things like how much money you make and the assets you own. Your personal liability coverage should be high enough to protect your assets if you are sued. In some situations, an Umbrella policy may be necessary to provide extra coverage.
Scheduled Personal Property
There are some situations where you might want special coverage for valuables, or collectibles like jewelry, guns, collectibles, rugs, etc. For example, let’s say you have an engagement/wedding ring. You should tell your insurance agent about it or the agent should ask about it. You can get the ring appraised and it can be covered under your homeowner’s policy.
Recap on homeowner insurance coverages
When it comes to the different homeowner insurance coverages, there is a lot to think about! Make sure you work with an experienced agent that cares about you to make sure you have the proper coverage for your home & lifestyle. If you ever have questions about homeowner insurance coverages or anything about your policy, emails us at team@thamsagency.com.
When it comes to auto insurance & determining rates, there are a few things that go into it. The way insurance companies determine an individual’s premium is through auto insurance rating variables. These rating variables are characteristics that are unique to the person wanting the policy – these characteristics help determine risk. The higher the risk, the higher the premium. Lower risk means a lower premium.
Let’s go through some of the common auto rating variables:
Common Auto Insurance Rating Variables
Age
Insurance companies use your age in their overall rating algorithms. Drivers who are under 25, and over 65 typically don’t get preferred rates. Why? Well, because statistics show that those two age demographics are more at risk for financial loss due to an auto accident.
Credit
Credit is a metric that has been used in insurance scoring for many years. The better your credit, the more favorable your rates will usually be. If you are not sure what your credit is, no worries! Insurance agents do a soft pull of your credit score when giving out quotes.
Car
The type of car, engine size, safety features, etc. are all part of determining your rate. For example, let’s say you had a 2010 Ford F-150. You trade in the truck and purchase a 2022 F-150. You look at your auto insurance and it went up. Why is that if it is the same model with similar features? Well, newer cars are typically more to insure due to the cars’ overall worth. It would cost more money for replacement costs essentially.
Driving History
Your driving record and loss history plays a substantial role in the price. If you have a spotty driving history or multiple moving violations or accidents, chances are you won’t get a preferred rate until those things are at least 3 years old.
Household
Insurance companies underwrite at the household level. This means they try to judge based on the entire household what the probability of loss will be. If there are multiple drivers in the house who are under the age of 25, that will impact everyone’s pricing in the household.
Auto Insurance Rating Variables Recap
A lot of the above variables are things you can’t change or shouldn’t change when it comes to auto rates. However, there are things you can do to lower your auto insurance rates, here is another article we wrote called “8 ways to save on auto insurance“. If you have any other questions about auto insurance or rating variables, let one of our team members know. Reach out to us at team@thamsagency.com.
When you browse through your auto policy, you may see certain auto insurance coverages and wonder exactly what they are and why they’re there. Your agent should explain all of these to you, but we can clarify some of the important ones for you so you are prepared for the policy review.
Types of Auto Insurance Coverages:
Collision Coverage
This is the part of your policy that covers your car in the event you damage the car itself somehow. This would be the result of an accident with a fixed or moving object like another car, a curb, a house, a guard rail, etc.
Comprehensive Coverage
This coverage also protects your car, but in the event that something else damages your car, that is not a fixed, or moving object. For example, theft, a rock that cracks your windshield while you’re driving on the highway, an animal you might hit, and so on.
Property Damage
Suppose you damage someone’s car in an accident, or a guard rail, house, or some other property that belongs to someone else. This is the part of your policy that compensates the other person for that damage.
Bodily Injury Liability
This coverage protects your financial interest in the event you injure another party in an accident. This is the part of your policy that pays that other party for their medical bills and related expenses. Due to the high cost of medical care, it’s dangerous to carry liability limits that are too low. This is something an experienced agent should help you with.
Un-insured & Under-insured Liability
This coverage pays you in the event that you are injured by another party and that other party was either unidentified or they weren’t carrying a high enough limit of Bodily Injury Liability to cover your expenses. This is also a very important part of your auto policy because you have zero control over how much insurance other people are driving around with.
Auto Insurance Coverages Recap
Truthfully, auto policies protect more than just your car. A car is replaceable, people are not. An auto policy helps with medical bills as well. We think it is a super important policy to have to not only protect your car but help with medical expenses.
There is more that goes into an auto policy, but we will save that for another day. If you have any questions at all, our experienced team is always here to help in any way they can. Feel free to email us at team@thamsagency.com with any and all of your questions.
Throughout your working lifetime, you are three times more likely to become disabled than you are to die before age 65. Makes a convincing case for having disability insurance, right? Why then is it that people have historically been more likely to buy life insurance, not disability insurance?
Why?: People are confused about what disability insurance is. There are so many terms to understand that people typically give up, and end up not purchasing coverage at all. So what is disability insurance anyways?
What is Disability Insurance
Disability Insurance ensures that your income is protected if something happens and you can no longer work due to an injury or illness. If you search the internet you’ll see a ton of different results from companies and brokers claiming to offer the best policy, but it’s important that you understand this type of coverage before you make a decision.
There are two different types of disability coverage:
Long Term Disability
Long Term Disability (LTD policies have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
Short Term Disability
Short Term Disability (STD) policies have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
Important Disability Insurance Conditions
When you speak with an agent about your policy, there are a few conditions to be aware of.
Non-cancelable
This means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
Guaranteed renewable
This gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.
More Things to Consider
In addition to the traditional disability policies, there are several options you should consider when purchasing a policy. Other things like coordination of benefits, cost of living adjustments, return of premium, etc. All of the additional things are important, but you don’t have to worry about it. An experienced agent should walk you through other things to consider & your options.
The team at Thams Agency is here to walk you through all of it and take care of everything. If you have any questions at all, call our office or email us at team@thamsagency.com.
Have you ever heard the term Debit Mod or Debit Modifier on your workers’ compensation policy and wondered what that means? Well, anything above a 1.00 is known as a debt modification, debit modifier, or debit mod. Ultimately, it means your business is going to pay more in workers’ compensation premium.
Max Debit Mod Breakdown
Sometimes I have been asked, how high can a mod go or what is the highest mod you have ever seen. Personally, the highest mod factor that I have seen was just over 2.20 and the account had numerous losses. Just recently I looked at an experience mod worksheet where the mod was 1.75, but it should have been 2.8? So why wasn’t it?
Well, in most states the company that establishes experience modification factors for businesses is NCCI and they have specific rules and formulas that are used to calculate an experience mod. They also know that there needs to be some limiting factors for businesses when it comes to how much their experience mod factor can move.
Let’s break down the example.
Debit Mod Example
The rule that I’m talking about here is produced by NCCI in the 2003 Experience Rating Plan Manual 2003 Section 2. D. 2 – Maximum Debit Modification. In order to limit experience rating or the effects of large claims, many times businesses will not see the full extent that claims have on their experience mod.
To determine the Experience Mod Factor the formula is to take Actual Losses/ Expected Losses = Experience Mod.
Actual Losses (J) – $113,795
Expected Losses (after weighting) (K) – $40,429
$113,795 / $40,429 = 2.81, but the worksheet said only 1.75? How can this be?
The rule states that experience mods are subject to a cap if the debit modification exceeds a certain amount.
The formula is as follows.
Maximum debit modification factor = 1.10 + (0.0004 x (Expected Losses/The Individual States Average cost per claim/1,000)). Sounds real easy right?
75 = 1.10 + (0.0004 x ((15,929/9.8)
How do you know if a debit mod is applied?
To determine expected losses you’ll want to look at Box D on the Workers Compensation Experience Rating Worksheet. To determine what the Individual States Average cost per claim is you’ll need a subscription to NCCI to access the experience rating values or many times this can be found on the State Insurance Division website.
The reality is unless you are really digging into the numbers on an experience mod worksheet, you probably won’t even know if a debit mod is being applied. More often than not, most people just look at the value that has been calculated to get the experience mod.
I hope this was helpful, but I understand that debit mods can be confusing. Insurance in general can be confusing! Let our workers comp experts help you dissect your experience mod worksheet and understanding your premium. Please feel free to reach out at team@thamsagency.com.