What's the True Cost of Your Insurance Coverage? by ProQuest


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What’s the True Cost of Your Insurance Coverage?
     CA International’s wholly owned             classified her as a financial planner          CIA client service representative
A    insurance agency, Collectors                rather than a collection agency and            reviewed the member’s loss history and
Insurance Agency Inc. (CIA), sometimes           explained the ramifications, which             shared with the member that in the
hears from ACA members who have found            could include the coverage being null          past three years he had three loses, all
a lower premium elsewhere. Upon                  and void in the event of a claim. Upon         with payouts well over the deductible.
examination, CIA representatives typically       calling this to the agent’s attention, she     If the same claims occurred with the
find the coverage is substandard and             was told it didn’t matter and she              other carrier’s policy, his premium
switching policies would expose the              “should be fine.” Uncomfortable with           savings would not make up for his out-
member to undue risk. Following are a few        that response, she wisely elected to           of-pocket deductibles. The member
examples.                                        remain with CIA.                               remained with CIA.

• An ACA member in South Carolina              • CIA spoke with an insured ACA                • In April 2008, an ACA member asset
   contacted CIA and another insurance           member who received an E&O quote               buyer left CIA’s E&O program because
   agency for Errors & Omissions (E&O)           from another agency for approximately          another agency offered a policy with a
   quotes. The other agency provided a           $500 less than CIA’s price. He said he         premium savings of $5,000. Four
   quote several hundred dollars lower           was concerned with protection for              months later, the member asked to
   than CIA’s. Before purchasing the policy,     Telephone Consumer Protection Act              return to CIA. The other agency hadn’t
   which he was told was “apples to              (TCPA) claims and that the other               included all o
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