III - INSURANCE INFORMATION INSTITUTE HELPLINE

INSURANCE INFORMATION INSTITUTE HELPLINE

The mission of the Insurance Information Institute (I.I.I.) is to improve public understanding of insurance what it does and how it works. In our Ask the Expert section we address the insurance-related questions

we receive most frequently through our III Helpline.

To ask a question, please fill in and submit the form. Although we cannot feature all of the questions we receive on our site, you will receive a response from one of our consumer experts. Please be patient-every year we handle nearly 50,000 consumer questions, so it may take a little time.

Please ensure that you enter the correct email address so that you will receive a response back from us.

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RECENT QUESTIONS

HOME

Q: I left my wedding ring on the bathroom sink this weekend and, from what we've been able to determine, my 7 year-old daughter was wearing it while going to the bathroom, it fell into the toilet and she flushed it. Will my homeowners policy cover any portion of it so that I can try to replace it?

A: The good news is that your ring is at least partially covered under a standard homeowners policy. The bad news is that if you did not have an endorsement specifically covering the ring--or other valauable jewelry--your coverage limit is probably $1,000-$2,000 (depending on the company), minus your deductible. In other words, the loss is covered, but the net result may or may not be worth the effort. Note that you will need to prove the value of the ring, and your insurance company may ask you to report the incident to the police, despite the fact it was not a theft.

AUTO

Q: If I don't have auto insurance, and am involved in an accident that is completely not my fault, will the party at fault's insurance pay for the repairs to my car?

A: Yes, assuming that unlike you, the “party at fault” is carrying at least basic liability coverage, his or her insurance will pay for the damage incurred by their client. However, if the fault for the accident is shared, for example 50-50, then the other driver’s insurance will cover his or her portion of the damage, but will only cover your portion if the other driver is also carrying uninsured motorist insurance. However, uninsured motorist insurance is not obligatory in every state, and you should not count on it.

Whatever the insurance situation of the other party, not carrying auto insurance is against the law, so you would be wise to buy it. Penalties for non-compliance with insurance laws vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states.

LIFE

Q: If I buy a life insurance policy and pay an annual premium then decide to cancel the policy before the year is up, will I get a refund for the remainder of the year?

A: Yes, you will get a refund. Basically, what the life insurance company does is change the premium payment frequency retroactively from annual to monthly and refund the premium for unused months.

Q: My dad is in a nursing home and I need to change the ownership on his life insurance policies. My mom has a POA for him. How do I go about doing this?

A: Your mother should contact the life insurance company and request the ownership change. She will need to provide a copy of the Power of Attorney. It would be advisable to contact the company through an agent, broker or financial professional, so that you are aware of all consequences of the ownership change.