Merritt Personal Lines Manual

7/27/2019 Merritt Personal Lines Manual

1/27

Merritt Personal Lines Manual: Limited

and Special Risks

Limited risk policies generally include accident-only contracts or contracts that providecoverage for specific situations. For example, a travel accident policy purchased at a localairport usually covers an individual for travel on the airplane on that particular day.

In contrast, a special risk policy is one which covers an unusual type of risk. Forexample, a professional football player insures his legs so that if he receives a career-ending injury, the policy would indemnify him for the loss (usually loss of income andearning potential).

This type of risk cannot be covered under a regular accident policy.

Specified or dread disease policies provide benefits only if you contract the specificdisease or group of diseases named in the policy.

Because benefits are limited in amount, these policies are not a substitute for broadmedical coverage. And specified disease policies are not available in every state.

Merritt Personal Lines Manual: Hospital

Indemnity Plans

In theory, when a person is hospitalized, there are -- in addition to medical expenses --additional living expenses incurred.

If the hospitalized person turns out to be a homemaker and mother, her family may incurday care and housekeeping expenses while she is in the hospital. And her hospitalizationinsurance may not cover all of the medical expenses. In short, the woman may well needadditional money at the time of a hospitalization.

A hospital indemnity plan provides a daily benefit for each day you are hospitalized as aninpatient -- and this is paid without regard to the hospital expenses incurred. This dailyamount is paid to you and the benefit is triggered simply by confinement as an inpatient.

An indemnity benefit may be $50, $100, $150, etc., per day. The total benefit due will bea simple total of the number of days you are in the hospital. If you are hospitalized for 10days and the daily benefit is $100, then you are eligible for a total of $1,000.

Example: Tom has a major medical policy with a $500 deductible and 80 percent to 20percent coinsurance on the first $5,000 of expenses. He also carries a $100 per dayhospital indemnity plan. Tom is hospitalized for major surgery for a total of 20 days. In


2/27

accordance with his major medical policy, he will have a minimum of $1,500 out-of-pocket expense. If Tom's total expense is $1,500, his hospital indemnity policy willprovide him with a check in the amount of $2,000. This check is payable to Tom, not tothe provider. Tom can use this amount in any way he pleases.

Generally, hospital indemnity plans are considered to be a supplemental coverage. Youcan't possibly cover all your hospital expenses with a $100 or even a $200 per dayindemnity plan. If you need supplemental benefits -- reimbursement for deductibles andcoinsurance payments -- then a hospital indemnity policy may make sense.

Hospital indemnity policies frequently are available directly from insurance companiesby mail as well as through insurance agents. You will find that these policies offer manyoptions on benefits and terms, so be sure to ask questions and find the right plan to meetyour needs.

Some policies contain limitations on pre-existing medical conditions that you may have

before your insurance takes effect. Others contain an elimination period (EP), whichmeans that benefits will not be paid until after you have been hospitalized for a specifiednumber of days. When you apply for the policy, you may be allowed to choose amongtwo or three elimination periods, with different premiums for each. Although you canreduce your premiums by choosing a longer elimination period, you should bear in mindthat most patients are hospitalized for relatively brief periods of time.

If you purchase a hospital indemnity policy, review it frequently to check whether youneed to increase your daily benefits to keep pace with rising health care costs -- orwhether your financial circumstances have changed enough that you can drop thecoverage completely.

Merritt Personal Lines Manual: Blanket

Health Insurance

Blanket health insurance is primarily an accident-only policy issued to an organization toprotect certain groups of people during a particular activity or situation. Blanket policiesare commonly provided for schools to cover activities such as athletics, volunteer firedepartments or summer camps for small children.

For example, a high school student who is a member of the school's basketball team isprobably covered by a blanket health insurance plan. So, if he is injured while engaged ina school activity, expenses will be covered by the blanket health insurance plan. Thiswould also apply to other students involved in various school activities such ascheerleaders, members of other athletic teams, etc. The coverage is designed only toprovide protection against injuries incurred while participating in the particular activity.


3/27

The policy is issued to the organization and the covered members may receive acertificate of insurance. There may be a premium charged to the individuals. Often, theorganization pays the premium -- which is modest since benefits are only provided forcertain individuals under certain circumstances.

Merritt Personal Lines Manual: CafeteriaPlans

Congress first authorized so-called cafeteria plans in 1978, as part of the InternalRevenue Code (Section 125).

The term "cafeteria" refers to the way in which you can spend proceeds from the account-- on any specific needs which may arise, like choosing dishes in a cafeteria line. Sincewe're talking about health coverage, this is an unfortunate image. Cafeteria plans are also

known as "flexible-spending accounts" and "Section 125 plans."

Any company can set up a cafeteria plan for its employees. This allows the employees topay for a full menu of medically oriented expenses with pre-tax dollars.

This not only reduces taxable income for employees -- making the benefits virtually free-- it also reduces taxable payroll for the employer.

You can use the money from a cafeteria plan to pay for various deductible expenses.These can include:

health insurance premiums, unreimbursed medical expenses (including co-payments for doctor visits or

prescription drugs), dependent care expenses,

alternative medical treatments (including acupuncture and chiropractic),

treatment of alcoholism,

programs to lose weight or quit smoking,

vision care (eye doctor visits, glasses, contacts, etc.),

birth control pills (which some health plans do not ordinarily cover),

special schooling and care for people with disabilities (from wheelchairs and

crutches to artificial limbs and Braille books),

dental fees, dentures and orthodontia, psychiatric care and

hearing aids.

If your employer offers a cafeteria plan, you choose the amount you would like to havewithheld from each paycheck. If you typically spend $200 a month on child care andanother $50 on prescription co-payments, for example, you might elect to have $250 amonth withheld from your paycheck. If you also have annual expenses for glasses, co-


4/27

payments for checkups, dental visits and so on, you can have an additional amountdeducted each month to cover these costs, as well.

This money is placed into an escrow account. Whenever you have a medical cost that isnot covered by your insurance, you submit a claim to the company that manages your

employer's cafeteria plan and that firm debits your account and sends you a check.

A cafeteria plan can be a very good way to save money on health care costs. However,the key is to avoid having too much money deducted from your paychecks. Whatevermoney you put into a cafeteria plan each year must be used for health care costs. If thereis money left over, it cannot be rolled over into the account for the next year or returnedto you. As far as you're concerned, it's gone

Merritt Personal Lines Manual Medical

Savings AccountsA new option, when it comes to specialty health insurance, is the tax-free medical savingsaccount (MSA). It combines a long-term savings account and a high-deductible healthinsurance policy.

As of January 1, 1997, these accounts could be offered to a limited number of individualswho are self-employed or employed at firms with 50 or fewer employees. The accountsare part of a four-year pilot program of a health insurance coverage that was put inmotion by the Kassebaum-Kennedy Health Insurance Portability and Accountability Act,passed in 1996. Policies are being sold on a first-come, first-serve basis to those who

qualify. The pilot program allows no more than 750,000 policies to be distributed.

How do MSAs work? They're like a combination of a cafeteria contribution plan and anindividual retirement account (IRA). You contribute a certain amount of money to theaccount each month. That money can be used to pay a variety of medical expenses - andit is not subject to income tax.

When you start an MSA, you also switch to a high-deductible catastrophic healthinsurance policy. (Both are offered in tandem by the same insurance company.) Theannual deductible for a single person must be between $1,500 and $2,250; for families, itmust be between $3,000 and $4,500.

Individuals then can contribute up to 65 percent of the deductible into the MSA eachyear; families can contribute up to 75 percent. The contributions are not subject to federalincome taxes and are used to meet the deductible, until the insurance coverage begins tokick in.

MSAs also allow you to use your money for a broader range of services than most healthplans.


5/27

MSAs can cover small, everyday claims, as well as medical expenses that normallywould not be covered by other insurance plans - such as dental care, eyeglasses,psychotherapy and home health care. MSAs also can be used toward payment ofpremiums for long-term care insurance or coverage upon leaving a job.

Money that you put into an MSA grows tax-free, like an IRA or a 401(k) retirement plan.When you turn 59 and 1/2, the money in the account becomes your property and is nolonger restricted to use for health care. Prior to that time, the money can be withdrawn fornon-health-related expenses, but you will have to pay ordinary income tax on whatevermoney you withdraw, plus a 10 to 15 percent penalty.

Premiums for MSAs will differ, depending on such factors as your age, the type of planand your place of residence. But if the annual premium is not exhausted at the end of theyear, this amount will roll over into the next year.

This is the big difference between an MSA and a flexible-spending health account, which

some companies already offer. Flexible-spending health accounts also use pretax dollarsfor medical expenses not covered by insurance. However, the unused balance in aflexible spending account is forfeited at year end. MSA funds can accumulate over time.

This is why MSA policies are being marketed as investment tools - since the leftovermoney can be rolled over year after year and collect interest. Leftover money can be usedfor future health care expenses or be invested in stocks, bonds and money marketaccounts.

There are even managed-care MSAs. Kentucky-based Humana Inc. offers an MSAprogram through its wholly-owned subsidiary, Employers Health Insurance Co. Other

insurers that are offering MSAs include Blue Cross/Blue Shield, Golden Rule, AmericanMedical Security Group and Fortis.

Merritt Personal Lines Manual: COBRA

If the insured has health insurance through the insured's employer and the insured leavesthe job -- whether he or she was fired or quit -- the odds are that the insured will want tokeep health coverage for a time.

Under the Consolidated Omnibus Budget Reconciliation Act or COBRA, which is part of

a federal law enacted in 1986, the insured has the right to keep the insured's coverage atgroup rates if the insured loses the insured's group health insurance because of areduction in the insured's hours of employment or because the insured leaves or losses hisor her job -- unless, of course, the insured is fired for gross misconduct. The insured alsohas the right to continue coverage for his or her spouse and any dependents.

COBRA only applies, however, to employers with 20 or more employees, at least half ofthe time during the preceding year.


6/27

How long the insured can keep the coverage depends on the insured's particularqualifying event -- that is, dying, being fired, quitting. Different coverage periods followeach of these events. If the insured were fired (for anything other than gross misconduct,in which case the insured don't qualify at all), the insured, the insured's spouse anddependent children are entitled to 18 months of continuous coverage. Any other

qualifying event entitles you to up to 36 months of coverage, if you decide to pay for it.

If the insured's COBRA coverage is about to expire -- assuming the insured haven't takenanother job in the interim that provides group health insurance -- the insured can apply tothe insurance company for conversion from COBRA to an individual policy. The insuredmust do so within 31 days of termination of COBRA.

The company is not obligated to provide the insured with an individual policy, however,if they only sell group insurance.

The insured's former employer will not keep paying for health insurance, either. The

insured will have to start picking up the tab. The company can charge the insured 102percent of what the coverage under the group plan actually costs (the extra 2 percent is anallowance to cover administrative costs).

Rest assured that, even with the two points, this amount is almost always less than whatthe insured would pay if the insured purchased individual coverage -- and it is oftensubstantially less.

By law, the insured's employer is required to let the insured know about COBRA andwhat steps the insured must take to retain health insurance coverage. The employer mustalso break down the costs for various coverages the insured may have, so the insured can

choose to continue all or only some of them -- for instance, the insured may decide tokeep HMO coverage but give up the vision and dental plan.

Merritt Personal Lines Manual: COBRA

Dispute

The February 1998 federal district court decision Kevin and Janet Kerr v. ChicagoTransit Authority dealt with a dispute over a COBRA claim.

Kevin Kerr began working for the Chicago Transit Authority (CTA) on March 19, 1985.Sometime between April 7, 1986 and January 1, 1987, the CTA included a notice inemployee payroll envelopes describing COBRA health insurance continuation rights.Kevin Kerr enrolled in the CTA's group health insurance plan on March 19, 1987.

In September 1990, Kevin Kerr married Janet Kerr. Although Janet Kerr's employeroffered health insurance, Janet Kerr enrolled in the CTA's plan.


7/27

In early 1991, the CTA shipped a booklet describing "Travelers PPO" benefits to CTAworkplace locations. These booklets were either "personally distributed ... or left in alocation where they [could] be taken by anyone who want[ed] one," according to the

CTA. The booklet described COBRA benefits but did not describe the Kerrs' particularHMO plan.

Janet Kerr was diagnosed with cervical cancer in August 1994.

On August 5, 1994, Kevin Kerr stopped working for the CTA and the Kerrs immediatelyenrolled in the Principal Mutual Insurance Company heath insurance plan offered byJanet Kerr's employer.

Later that month, the Kerr's received a letter from the CTA describing the "Continuationof Group Heath Coverage under ... COBRA." The letter stated that:

You are eligible to continue your Health and Dental coverage under COBRA for a periodof 18 months. As a result of your benefits being terminated, you have the right tocontinue the same coverage for yourself and your dependants if any.... Please contact [thehuman resources department] before September 09, 1994 for your application. If you failto contact [us], the CTA will assume you are not interested in continuing your health anddental coverage under the COBRA Act.

The Kerrs submitted a claim to Principal Mutual. However, Principal Mutual declined topay the medical expenses incurred for Janet's cancer treatment from August 1, 1994 toAugust 1, 1995 based on an exclusion for preexisting conditions.

Janet Kerr then called CTA's COBRA Compliance Department and requested to continueher health insurance coverage. However, CTA said that it would have to look into thematter because her election period had expired.

Janet followed up with a letter requesting COBRA continuation coverage. The letterstated, in part, "[w]e hope that we will be able to buy back this coverage although wehave gone only a few days over the time limit." In response, CTA informed Janet Kerrthat her COBRA election period expired before October 28, 1994 and that CTA,therefore, would not continue her health insurance coverage.

On March 28, 1995, the Kerrs filed suit against the CTA and the Healthcare ServiceCorporation seeking a declaratory judgment and $150,261.58 to pay the medicalexpenses incurred for the treatment of Janet Kerr's cancer. Both parties brought motionsfor summary judgment.

According to the Kerrs, they elected to continue Janet Kerr's health insurance coverage ina timely manner and CTA violated COBRA's notice requirements. CTA claimed that


8/27

Janet Kerr's election came too late and that its August 24, 1994 letter provided propernotice of her COBRA rights.

COBRA requires employers to offer continued health insurance coverage for coveredemployees and their qualified beneficiaries after a "qualifying event," such as termination

for reasons other than gross misconduct.

Kevin Kerr was a "covered employee" because he "was provided coverage under a grouphealth plan by virtue of the performance of services" for the CTA. Janet Kerr, as KevinKerr's spouse, was also a "qualified beneficiary."

CTA was the "plan administrator" and was, therefore, required to notify coveredemployees and qualified beneficiaries about their right to continued coverage after aqualifying event.

A qualified beneficiary is entitled to elect to continue insurance coverage within the

election period.

Typically, an election period: (A) begins not later than the date on which coverageterminates under the plan by reason of a qualifying event, (B) is of at least 60 days'duration and (C) ends not earlier than 60 days after the later of (i) the date described insubparagraph (A) or (ii) in the case of a qualified beneficiary who receives notices underthis title, the date of such notice.

Once a qualified beneficiary elects continuation coverage, the plan administrator mustprovide coverage for a specified time period. The person electing coverage must pay upto 102 percent of the premium.

Both parties disputed the date that triggered the 60-day election period.

According to the CTA, the election period begins on the date a requisite notice is mailedto the beneficiary. Thus, the CTA contended that the election period in the Kerr's casebegan on August 24, 1994, the date it sent the letter discussing COBRA continuationrights. However, the Kerrs maintained that the election period begins on the day that thenotice is received.

The court agreed with the Kerrs reading of the election period.

"Other courts have held that the election period begins on the day the qualifiedbeneficiary receives the notice," said the court. In fact, said the court, legislative historyalso supports this result. Congress enacted COBRA "to provide continued access toaffordable private health insurance."

According to the court:


9/27

Contrary to the CTA's assertion, Congress did not specify that the election period beginson the date the notice is mailed or on the date shown on the notice letter itself. Indeed,Congress did not contemplate that any of the 60 days would be lost to the mailing ordelivery processes. [A]dding requirements not contained in the plain language of thestatute is inappropriate. Thus, we find that the election period begins on the day that the

qualified beneficiary receive notice of her continuation rights.

The Kerrs received notice of their COBRA continuation rights on August 30, 1994.Accordingly, Janet Kerr had until October 29, 1994 to elect continuation coverage. JanetKerr talked to CTA's compliance department on October 28, 1994, one day before theelection period expired. At that time, Janet Kerr elected to continue her health insuranceunder COBRA. Because the CTA accepts oral election, Janet Kerr elected coveragebefore her 60-day election period expired.

Therefore, the CTA had to provide continuation coverage under the terms and conditionsof COBRA.

Merritt Personal Lines Manual: HIPAA

and COBRA

The Health Insurance Portability and Accountability Act also made a few changes to theprovisions of COBRA, which became effective January 1, 1997. Now, newborn andnewly adopted children of people who have COBRA coverage automatically qualify forthe coverage, as long as the insured can enroll them within 30 days of the adoption orbirth. In addition, a disabled COBRA beneficiary is eligible for 11 additional months of

coverage if he or she was determined to have been disabled under Social Security at thetime of a qualifying event or at a time during the first 60 days of continuation. (Thedisabled individual must notify the plan administrator of his or her disability status within60 days of the determination and within the first 18 months of continuation.)

If the insured's COBRA coverage is about to expire and the insured anticipates gettinganother job that provides health insurance soon, the insured may want to consider atemporary insurance policy. A temporary medical policy is fairly limited, but it willprotect the insured from catastrophic medical expenses. It usually will have a deductible;after that, it will reimburse the insured for a percentage of the insured's costs. Some planswill reimburse the insured on a percentage basis up to a set amount (sometimes $5,000),then pay 100 percentof the insured's costs above that threshold.

A temporary medical policy will pay typical hospitalization costs -- but only forprocedures that are medically necessary, at rates that are usual and customary -- as wellas recovery costs, including time in a nursing home or in-home visits from a registerednurse. It often will not pay for any condition the insured had during the 24 months priorto the start of the policy or for any self-inflicted injuries or anything that might becovered by workers' comp insurance.


10/27

Also excluded are coverage for injuries incurred in a war (the insured should be coveredby the military, if the he or she serving), dental treatment, routine physicals andimmunizations, routine pediatric care of a newborn child, normal pregnancy or childbirth,sterilization (or the reversal of sterilization), mental illness, alcoholism or drug abuse,prescription drugs and medications that the insured get when not in a hospital, treatment

outside the United States -- and the list goes on.

In addition, if the insured purchase 120 days' worth of temporary medical coverage andget a job in 30 days, the temporary insurance cannot be canceled. (Ordinarily, if theinsured had some other sort of medical insurance, the insured could get the unusedportion that the insured have paid for refunded.)

However, there is probably a probation period with the insured's new employer, duringwhich the insured is not eligible for the company's medical plan. So, a temporary policyto tide the insured over for that period may be worth the money.

Merritt Personal Lines Manual:Specialized Policy Forms

In the heated debate between managed care and traditional indemnity insurance, somesmaller but equally important health coverage issues are lost. These smaller issues areoften related to specialty health insurance policies -- matters which are not broad enoughto become political debates...but which can be devastating when they impact anindividual person or family.

If insurance companies consider the insured uninsurable due to the insured's health ormedical history or if the insured is in the market for more than just the insured's typicalmedical and hospitalization coverage, the insured might want to explore the options ofother, less commonly used forms of health-related benefits or policies.

Some people opt to purchase alternative coverages -- on a stand-alone basis or combinedwith each other -- such as dental coverage, vision coverage, a separate prescription planor even long-term care coverage. Of course, some of these people look for the coverageprecisely because they suspect they will have a particular kind of need.

On the other hand, some people choose these coverages for financial reasons: Because

their employers offer the insurance for free...or for a discounted fee via a tax-advantaged"cafeteria plan."

Whatever the reason people choose specialty coverages, the plans will likely grow inimportance as technology and financial sophistication advance. Some risk experts in theinsurance industry predict that soon "health insurance" will be a collection of specialtycoverages for specific diseases and conditions. This would allow maximum flexibility forthe policyholder -- and maximum precision for the insurance company


11/27

Merritt Personal Lines Manual: Health

Insurance: COBRA, Cancer and Other

Specialized Policies: ConclusionIf you are buying any kind of specialty health insurance, read and compare the policiesyou are considering before you buy one and make sure you understand all of theprovisions. Marketing or sales literature is no substitute for the actual policy. Read thepolicy itself before you buy.

Ask for a summary of each policy's benefits or an outline of coverage. Good agents andgood insurance companies want you to know what you are buying.

And bear in mind: In some cases, even after you buy a policy, if you find that it doesn't

meet your needs, you may have 30 days to return the policy and get your money back.

This is called the free look option. In order to use it effectively, you need to know theright questions to ask.

Merritt Personal Lines Manual: Health

Insurance: Needs Analysis Introduction

Choosing the right health coverage comes down to asking a lot of questions. These

questions will generally fall into two categories: first, how the plan responds to variousmedical conditions and needs; second, what limitations and exclusions the plan uses tocontrol costs.

In this chapter, we offered some of the specific questions to ask.

It can be tough to find someone who will answer these questions at a specific insurancecompany or HMO. In some cases, you may need to talk to a broker or agent. In others,you may have to spend some time on the telephone finding the right person.

You may not want to do all this research for six or eight different plans -- but most

insurance decisions boil down to two or three options.

Merritt Personal Lines Manual: Picking

Your Plan


12/27

When it comes to health insurance these days, you have a choice: Do you want to join ahealth maintenance organization (HMO), a preferred provider organization (PPO)? Or doyou want to pay more and get a reimbursement-style policy (Medical Expense plan) sothat the insurance pays you back for a percentage of your costs, after you meet thedeductible?

Because price is an important factor, about one in three Americans are enrolled in anHMO today, with 15 million enrollees in California alone. The other Americans arecovered by a more traditional reimbursement plan, Medicare -- or they have no healthinsurance at all.

Going without health insurance is risky. What if you get injured and require surgery? Thecost of a hospital stay can be as much as $400 a day. Or what if you or your significantother becomes pregnant? Even through a clinic, the price of prenatal care and deliverycan exceed $5,000 today.

Insurance is designed to help you in these situations -- to assume the risk of paying yourmedical bills -- for a fee, of course.

If you have to pay for your own health insurance, you know it isn't cheap. But one majormedical expense can make one or two or even 10 years' worth of premiums pay forthemselves.

If you're searching for your own coverage, there is a tremendous variety of policiesavailable in today's health insurance market. Some contain a single coverage (forexample, hospitalization coverage only) or a combination of the major types of healthinsurance. Even if you're just choosing among the two or three plans offered by your

insurance company or your employer, this chapter will cover what you need to know tochoose the plan that's right for you.

Merritt Personal Lines Manual Choosing

the Right Plan

What kind of plan is right for you or your family? Only you know for sure. You will needto choose which style plan to purchase. And, if you opt for a Medical Expense plan,you'll also have to choose a deductible. As with other types of insurance, the higher your

deductible, the lower your premium.

For most people, a deductible in the $100 to $250 range is the most manageable. Butcompare other deductibles, too. If your family has been healthy for a number of years,you may want to switch to a deductible of $500 or $1,000. You'll notice a sizablereduction in premiums. (Just remember that you'll have to pay the bills out-of-pocketuntil you satisfy the deductible.)


13/27

Some people even choose a deductible in the thousands of dollars -- making theirs, inessence, a catastrophic insurance policy. In this case, you'd absorb all the everyday costsof medical care, from doctors visits to prescriptions. But if you got seriously ill, you'd becovered after you satisfied the deductible. (Medical Savings Accounts or MSA's, aredesigned for this very reason and discussed later in the chapter.) If you are healthy, this

could wind up saving you money.

When comparing coverage, it is vital to look into a plan's limitations and exclusions todetermine which expenses are not covered and which are restricted. For instance, manypolicies will pay only for treatment that is deemed "medically necessary" to restore youto good health. These policies often will not cover routine physical examinations orcosmetic procedures.

You'll also want to investigate what the insurance company considers usual, reasonableand customary charges, if at all possible. That's because the charges a company considersnormal for a particular medical procedure in a specific geographic area are the maximum

it will pay. If the charges are higher (and they often are), you'll be stuck paying thedifference.

Also, find out if the plans you are looking into exclude coverage for pre-existingconditions (more on them in a moment). Unless you want to pay for your own medicalexpenses, it's best to avoid these policies if you can. If not, try to find one that excludescoverage for a limited period of time only.

Another way you can save money on your premiums, if you can afford to do it, is bypaying them annually. It's worth looking into how much the service fee is for monthlypayments -- and inquiring about a discount for prepayment.

Even if you already have health insurance, you'll want to review your policy once a yearto be sure it still matches your needs. As the health care system continues to change, yourhealth insurance should change with it.

Merritt Personal Lines Manual: Chapter

9 Buying Your Own Coverage

If your employer does not provide healthcare insurance -- or if you're self-employed --

you can purchase insurance on your own. Unfortunately, you'll wind up paying more foryour own insurance than an employer or other group would -- since insurance, like mostother things, is cheaper by the dozen.

Another option is to obtain health insurance through a group. By becoming a member ofa trade association, labor union, college alumni association, church group or other similarentity, you'll be eligible for any member benefits provided that often include healthinsurance at reduced costs.


14/27

If you do have to seek coverage on your own, you'll want to shop around for the bestcoverage at the best price. You can contact an insurance company directly or you can gothrough an agent. This will help you find the best overall deal. You also will want tocheck with your state insurance department to see if there have been a lot of complaintsabout the insurance companies you're considering.

You can even check out the insurance companies' financial stability ratings. A.M. BestCo. rates each company on a letter scale from A to F, in order to provide an overallindication of the company's ability to meet its policyholder obligations. Their ratings arebased on financial strength, the company's market profile and operating performance. Forinstance, A++ and A+ indicate Superior while F indicates the company is in liquidation.These ratings can be found at your local library or on-line.

These days, you should be offered a choice of the various medical plans we've discussed.These are, in order of decreasing cost:

a Medical Expense plan (full freedom of choice plan); a Preferred Provider Organization (PPO); or

a Health Maintenance Organization (HMO).

If your doctor is already a contracting provider with a PPO or HMO, you may be able tosave a good bit of money by going with one of the more restrictive plans -- and you'd stillget to see the doctor of your choice. In other words, read the preferred provider list or theHMO's provider list, before you decide.

Merritt Personal Lines Manual:

Applying for InsuranceTo get an accurate quote for health insurance, you will have to fill out an application. It'svery important that you do this completely and correctly. If you lie on the application, thecompany can not only deny you coverage for a problem down the road, it can rescind thepolicy entirely. And, most companies can get your medical information anyway through anon-profit association called the Medical Information Bureau (MIB).

The MIB was formed in 1902 by a group doctors who were also medical directors atseveral, large insurance companies. Because their companies had lost significant dollars

to dishonest applicants, they sought a means to centralize health related information onindividual applicants and reduce the potential for fraud, hence the birth of the MIB.

Today, the MIB maintains medical information only on approximately two out of every10 applicants for health, life or disability insurance. That's because only those applicantswith significant medical or longevity conditions are required to be reported to them bythe 750 or so member companies. And, medical conditions are reported by the use of aseries of codes - a total of about 210 - which means there is a good chance for errors.


15/27

Before you apply for insurance, it might be a good idea to check if there's a report on filefor you, it's at no charge. And, if there is one and it's wrong, you can correct it. Justtelephone them at (617) 426-3660 and ask for your free report.

The application for health insurance also will ask for your age and health history. Most

insurance companies will ask your doctor for your medical records and they may requireyou to undergo a physical with one of their doctors or even get additional blood tests.(However, they cannot conduct an HIV test, except if you are also applying for life ordisability income insurance - and then it has to be with informed consent.)

Completing the application, you will have to let the insurance company know about pre-existing conditions. The company will want to know what illnesses and health problemsyou have had during the last couple of years (possibly longer). Most insurance companieswould prefer not to pay you for treatment for a pre-existing condition, such as an ulcer ora gallstone. However, they are usually required by law, to cover pre-existing conditionseventually - usually after six months to a year.

An insurance company also may restrict certain benefits for a set period of time. Forinstance, it may not cover expenses related to a pregnancy until the coverage has been ineffect for one year. If you're already pregnant, this would be treated as a pre-existingcondition. So, if you're planning on becoming pregnant, you'll want to get your healthcoverage sorted out as far in advance as possible.

If you've had a serious pre-existing condition, such as cancer or a heart attack, aninsurance company may not want to issue you coverage at all. Or it may require you tosign a waiver. This is a rider or amendment to a policy that restricts benefits by excludingcertain medical conditions from coverage. (However, some states have begun to prohibit

this practice.)

Your age also is an important factor in pricing and obtaining insurance. Many insurancecompanies have age "bands," when it comes to costs for coverage. For instance, everyoneage 21 to 25 may fall into one price range; and everyone 26 to 30 would cost a bit moreto insure each month.

Insurance companies prefer to write policies for young, healthy people - and they preferto stay away from older, less healthy people. So, it pays to pick a good plan when you'rerelatively young and stay with it, if you can.

Some companies allow you to change your mind and get your money back after youpurchase health insurance - but only if the policy has a "free look" or review period,which typically ranges from 10 to 30 days. So, you'll want to read your policy as soon asyou get it.

You may even want to ask your pharmacist and your doctor how different plans arehandled before you sign up. They should be more than happy to tell you which


16/27

companies and which plans are easy to work with and which ones make life difficult forthem and for their patients.

Merritt Personal Lines Manual: OtherCommon Forms of Health Insurance

In addition to medical and hospitalization coverage, some people opt to purchase dentalcoverage, vision coverage and a separate prescription plan.

You can obtain dental insurance through an insurance company's individual or group plan(a group plan might be offered by your employer or by an association to which youbelong) or through a prepayment plan or a dental service corporation. All of these plans

will reimburse you for at least part of the money you spend on dental service andsupplies.

This sort of coverage usually includes payment for preventive care, such as regularcheckups, X-rays and cleanings. It also pays for the things we all hate: fillings, toothextractions, inlays, bridgework oral surgery and root canals. This insurance also will helpyou out with expenses for dentures and orthodonture. You'll have to shell out a prettyhefty co-payment, although that co-payment may be smaller for preventive services.(Typically, insurance will not help pay for cosmetic work on your teeth.)

Vision plans typically are discount services. For a small fee -- about $15 to $20 a year --

you get a membership card that entitles you to discounts on eye exams, glasses andcontacts. These discounts (usually in the 50 percent range for eyewear) often are good ata wide variety of stores, including most of the major chains. Some of the plans also offercontact lenses at a discount by mail. Some even provide a discount on non-prescriptionsunglasses.

If you purchase glasses or contact lenses on a regular basis (for example, if you weardisposable lenses), these plans can be quite cost-effective.

Prescription plans are much like vision plans. They also get you a discount onprescriptions if you visit a participating pharmacy. Again, they typically include most

major chains. Discounts range from 5 percent to 50 percent on most drugs. Discountsmay be higher if you purchase your prescription drugs through a mail-order program.

Most people who have health insurance do not need a prescription plan -- unless theyhave an extremely high deductible on a major medical plan and purchase prescriptiondrugs on a regular basis.


17/27

In addition to all the types of coverage discussed so far, some insurance agents orinsurance companies may try to sell you supplemental insurance policies. These aredesigned to pay in addition to your regular medical coverage.

They pay limited benefits, such as a daily dollar amount if you are hospitalized (these are

known as hospital income policies) or expenses incurred to treat a specified "dreaddisease," such as cancer or a stroke.

Beware of these policies. The coverage often will duplicate what you are paying for inyour comprehensive medical plan. Be sure you understand the limitations and exclusions-- and whether or not you have any real need for this coverage -- before you buy.

Merritt Personal Lines Manual: Other

Common Forms of Health Insurance

In addition to medical and hospitalization coverage, some people opt to purchase dentalcoverage, vision coverage and a separate prescription plan.

You can obtain dental insurance through an insurance company's individual or group plan(a group plan might be offered by your employer or by an association to which youbelong) or through a prepayment plan or a dental service corporation. All of these planswill reimburse you for at least part of the money you spend on dental service andsupplies.

This sort of coverage usually includes payment for preventive care, such as regular

checkups, X-rays and cleanings. It also pays for the things we all hate: fillings, toothextractions, inlays, bridgework oral surgery and root canals. This insurance also will helpyou out with expenses for dentures and orthodonture. You'll have to shell out a prettyhefty co-payment, although that co-payment may be smaller for preventive services.(Typically, insurance will not help pay for cosmetic work on your teeth.)

Vision plans typically are discount services. For a small fee -- about $15 to $20 a year --you get a membership card that entitles you to discounts on eye exams, glasses andcontacts. These discounts (usually in the 50 percent range for eyewear) often are good ata wide variety of stores, including most of the major chains. Some of the plans also offercontact lenses at a discount by mail. Some even provide a discount on non-prescription

sunglasses.

If you purchase glasses or contact lenses on a regular basis (for example, if you weardisposable lenses), these plans can be quite cost-effective.

Prescription plans are much like vision plans. They also get you a discount onprescriptions if you visit a participating pharmacy. Again, they typically include most


18/27

major chains. Discounts range from 5 percent to 50 percent on most drugs. Discountsmay be higher if you purchase your prescription drugs through a mail-order program.

Most people who have health insurance do not need a prescription plan -- unless theyhave an extremely high deductible on a major medical plan and purchase prescription

drugs on a regular basis.

In addition to all the types of coverage discussed so far, some insurance agents orinsurance companies may try to sell you supplemental insurance policies. These aredesigned to pay in addition to your regular medical coverage.

They pay limited benefits, such as a daily dollar amount if you are hospitalized (these areknown as hospital income policies) or expenses incurred to treat a specified "dreaddisease," such as cancer or a stroke.

Beware of these policies. The coverage often will duplicate what you are paying for in

your comprehensive medical plan. Be sure you understand the limitations and exclusions-- and whether or not you have any real need for this coverage -- before you buy.

Merritt Personal Lines Manual: Making

Smart Choices

Choosing a health plan is not the easiest task in the world. Or the most enjoyable. Butgoing without health coverage is a bigger risk than most people can afford. What if youget injured and require surgery? The cost of a hospital stay can be as much as $400 a day.

What if you or your significant other becomes pregnant? Even through a clinic, the priceof prenatal care and delivery can exceed $5,000.

Health coverage is designed to help you in these situations - to assume the risk of payingyour medical bills. A good plan provides you with necessary funds to cover hospital andphysician expenses associated with a serious illness, thus preserving your savings andother assets. So, it's important that you put some time and effort into deciding which planis best for you and your family.

Although there is no one "cream of the crop" plan, there are some plans that are betterthan others for your specific needs. Health plans tend to vary, both in cost and the ability

to get the services you need. Although no plan will pay for every health care cost that youmay incur, some will cover more than others.

Health insurance plans are usually indemnity (fee-for-service) or managed care. But, aswe've discussed earlier, there are other ways to obtain health insurance, including:

workers' compensation benefits for occupational disabilities;

Social Security disability benefits;


19/27

Medicare, if you are eligible;

work-related benefits through employer-sponsored plans; and

health coverage under any statutory plans.

Any of these programs may offer you enough health coverage that you would not need to

buy standard policies. However, that will usually not be the case.

When considering a health plan, you should try to figure out the total cost to you andyour family, especially if someone in your family has a chronic or serious healthcondition.

Indemnity and managed care plans differ in their choice of providers, out-of-pocket costsfor covered services and how bills are paid. Indemnity offers you more choice of doctors(including specialists, such as cardiologists and surgeons), hospitals and other healthcareproviders than managed care. In addition, indemnity plans pay their share of the cost onlyafter they have received a bill.

Managed care plans usually have agreements with certain doctors and hospitals toprovide services at reduced costs. With this type of plan, you will have less paperworkand lower out-of-pocket costs.

Over the past decade, the distinctions between indemnity and managed care have blurred.Indemnity plans offer managed care-type cost controls and managed care plans allowtheir members to use providers that are not within the plan's network.

With an indemnity plan, you can use any doctor or hospital you wish. You or they sendthe bill to your insurance company, which pays part of it. Under most plans, you have to

pay a deductible before your insurance company will pay.

Once you meet the deductible, most fee-for-service plans pay a percentage of the usual,customary and reasonable charge (UCR) for a service.

Your insurance company usually pays 80 percent of the cost and you pay the copayment(co-insurance) or the other 20 percent. If a doctor charges more than the company's UCRrate, you will have to pay the difference.

An indemnity plan typically pays for things like medical tests and prescriptions as well ascharges from doctors and hospitals. But, it usually won't pay for preventive care, like

annual checkups.

If you decide that an indemnity plan isn't for you, you may want to look into one of threebasic types of managed care programs: PPOs, HMOs and POS plans.

A PPO or Preferred Provider Organization is the closest thing to an indemnity

plan. A PPO contracts with doctors, hospitals and other providers who haveagreed to accept lower fees for their services. If you choose a doctor within the


20/27

network, you will pay a lower copayment (around $10 for a doctor visit or $5 fora prescription). You can also go outside the network if you choose. However, ifyou do go outside the network, you will have to meet the deductible and yourcopayment will be higher due to higher charges for services outside the network.

Health Maintenance Organizations - the oldest form of managed care - offer a

wide range of benefits, including preventive care, for a set monthly fee. HMOsprovide you with a list of doctors from which to choose a primary care doctor,who will coordinate all your medical care. Your primary care doctor will beresponsible for referrals to specialists. Some HMOs require you to pay acopayment, usually around $5 to $10, for a visit. But many HMOs don't requireyou to pay anything. If you belong to an HMO, it will cover only the costs fordoctors in that HMO. If you go to a doctor outside the plan, you could end upfooting the bill.

Point-of-Service (POS) Plans are similar to indemnity plans in that you can still

get some coverage if you go outside of the plan. Although a POS requires you tochoose a primary care doctor from the plan's network, he or she can make

referrals outside of the network - and your plan usually foots all or most of thebill. In addition, a POS allows you to refer yourself to a provider outside thenetwork and still find some coverage - that is, if you are willing to paycoinsurance.

Merritt Personal Lines Manual: Plan

Benefits

In addition to basic benefits, you might want to find out if the health plan you are

considering covers:

physical exams and health screenings;

care by specialists;

hospitalization and emergency care;

prescription drugs;

vision care; and

dental services.

The Department of Health and Human Services Agency for Health Care Policy andResearch (AHCPR) also recommends looking into how a plan handles the following:

care and counseling for mental health;

services for drug and alcohol abuse;

obstetrical-gynecological care and family planning services;

care for chronic (long-term) diseases, conditions or disabilities;

physical therapy and other rehabilitative care;

home health, nursing home and hospice care;

chiropractic or alternative health care, such as acupuncture; and


21/27

experimental treatments.

If health education and preventive care benefits are important to you, you might want toask about services such as, shots for children, breast exams, Pap smears or programs tohelp quit smoking.

When comparing coverage, it is vital to look into a plan's limitations, exclusions andreductions to determine which expenses are not covered.

For instance, many policies will pay only for treatment that is deemed "medicallynecessary" to restore you to good health. These policies often will not cover routinephysical examinations or plastic surgery for cosmetic purposes. Additionally, some planslimit or won't pay for programs for chronic disease or various medicines or equipment.

Indemnity and managed care plans typically won't cover treatments that are experimental.In this case, you would want to find out how the plan decides what is or is not

experimental as well as your options if you disagree with a plan's decision on coverage.

Merritt Personal Lines Manual: Choosing

the Right Doctor

Whatever type of plan you choose, you will need to select a doctor, whether it's from anetwork list, a preferred list or on your own. If you are in a managed care plan, ask yourplan for a list or directory of its providers - they may also offer help in choosing a doctorthat's right for you.

Once you have the names of doctors who interest you, you should check them out. TheAHCPR provides the following list of suggestions:

Ask plans and medical offices for information on their doctors' training and

experience. Look up basic information about doctors in the Directory of Medical Specialists,

available at your local library. This reference has up-to-date professional andbiographic information on about 400,000 practicing physicians.

Use "AMA Physician Select," which is the American Medical Association's free

service on the Internet for information about physicians (http://www.ama-

assn.org). Find out whether the doctor is board certified. Although all doctors must be

licensed to practice medicine, some also are board certified. This means thedoctor has completed several years of training in a specialty and passed an exam.Telephone the American Board of Medical Specialties at 1.800.776.2378 for moreinformation.

Find out if any complaints have been registered or disciplinary actions taken

against the doctor. To find out, call your State Medical Licensing Board.


22/27

Find out if any complaints have been registered with your State department of

insurance. (Not all departments accept complaints.) Set up a "get acquainted" appointment with the doctor. Ask what charge there

might be for these visits, if any. Such appointments give you a chance tointerview the doctors - for example, to find out if they have much experience with

any health conditions you may have.

Merritt Personal Lines Manual: What

You Will Pay

As we discussed earlier, your health insurance won't cover you for everything. If you optfor a reimbursement-style program, you'll also have to choose a deductible and at othertimes you'll have to pay a copayment.

In order to get a true idea of what your costs will be under each plan, you need to look athow much you will pay for your premium and other costs. You can't possible know whatyour health care needs for the coming year will be, but you can guess what services youand your family might need.

To figure out what the total costs to you and your family would be for services undereach plan, it makes sense to ask the following questions:

Are there deductibles you pay before the insurance begins to cover your costs?

After you have met your deductible, what portion of your costs are paid by the

plan?

Does this amount vary by the type of service, doctor or health facility used? Are there copayments you must pay for certain services, such as doctor visits?

If you use doctors outside a plan's network, how much more will you pay?

If a plan does not cover certain services or care that you think you will need, how

much will you have to pay? Are there any limits to how much you must pay in case of major illness?

Is there a limit on how much the plan will pay for your care in a year or over a

lifetime? (A single hospital stay for a serious condition could cost hundreds ofthousands of dollars.)

Some people choose a deductible in the thousands of dollars - making theirs, in essence, a

catastrophic insurance policy. In this case, you'd absorb all the everyday costs of medicalcare, from doctors visits to prescriptions. But, if you got seriously ill, you'd be covered. Ifyou are single and healthy, this could wind up saving you money.

For most people, a deductible in the $100 to $250 range is easiest to live with. But lookinto other deductibles, too. If your family has been healthy for a number of years, youmay want to switch to a deductible of $500 or $1,000. You'll notice a sizable reduction in


23/27

premiums. (Just remember that you'll have to pay your own way until you satisfy thedeductible.)

You'll also want to investigate what the insurance company considers usual, reasonableand customary charges, if at all possible. That's because the charges a company considers

normal for a particular medical procedure in a specific geographic area are the maximumit will pay. If the charges are higher, you'll be stuck paying the difference.

Another way you can save money on your premiums is by paying them annually. It'sworth looking into how much the service fee is for monthly payments and inquiring abouta discount for prepayment.

Even if you don't get to choose the health plan yourself (for example, your employer mayselect the plan for your company), you still need to understand what kind of protectionyour health plan provides.

The more you learn, the more easily you'll be able to decide what fits your personal needsand budget

Merritt Personal Lines Manual: Getting

the Most Out of Your Health Plan

In order to get the most out of your health plan, you should stay informed. How? Readyour health insurance policy and/or plan member handbook thoroughly, making sure thatyou understand the sections that pertain to the benefits, coverage and limits provided

under the policy.

Some companies allow you to change your mind and get your money back after youpurchase health insurance -- but only if the policy has a "free look" period, whichtypically ranges from 10 to 30 days. So, read your policy as soon as you get it.

Insurance consumers -- like consumers of anything -- should compare the variousproducts they are considering buying. The problem with insurance is that people don'talways know where to look.

You should have enough insurance to cover you and your family against the most serious

and financially disastrous losses that can result from an illness or accident. If you areoffered health benefits at work, carefully review what each plan offers to make sure theone you select fits your needs. If you purchase individual coverage, buy a policy that willcover your major medical expenses and pay them to the highest maximum level.

Call the health plan. Most offer brochures on the various coverages, as well as theinformation that you should and need to know. Additionally, they may offer telephone


24/27

numbers for hotlines, services, etc. which might also be useful in your search for the"best" plan for you.

You might also want to speak with the Human Resources director or health benefitsofficer at your workplace to learn more about your policy. They can usually provide you

with some information, brochures and personal insight as well as provide you with keycontact numbers for your plan.

Merritt Personal Lines Manual:

Comparing Plans

Most people tend to choose between a traditional indemnity plan and a managed careplan. As with any plan, whether you end up choosing a fee-for-service plan or a form ofmanaged care, you must examine a benefits summary or an outline of coverage. The

benefits summary gives you a description of policy benefits, exclusions and provisionswhich makes it easier to compare policies.

Read the summaries carefully. Think about you and your family's specific health careneeds. You may not want coverage for pregnancy; but you may want coverage forchiropractic services.

Here's a list of important questions to get you started:

What exactly does the plan cover? Some services such as mental health, drug

rehabilitation or dental care, may not be included at all. While you can't possibly

predict all of your health care needs, find out if the treatments that you need arecovered. Also, find out if treatments that are considered experimental or non-traditional are permissible and, if you're interested, if alternative or holistictreatments are covered.

What will it really cost? Don't just look at the monthly premiums. Consider theoverall costs, including co-payments and deductibles. Some plans offer areasonable limit on the total you will pay each year. Others place a lifetime limiton what the company will pay, which you can reach if you have one major healthproblem.

Do you have a choice of doctors? Be sure to have some flexibility. Also be sure at

least a few local hospitals and pharmacies are covered under the plan.

Is there a utilization review? In some plans, you cannot switch doctors or see aspecialist without authorization. What happens if you don't like the doctor youchoose?

Who decides what is considered medically necessary? Is it the insurance company

or the doctor that decides? What about pre-existing conditions? If you have a pre-existing condition, such as

high blood pressure, you may be liable for all costs relating to the illness. Knowwhen and if your insurance pays for any illnesses you may have.


25/27

What is the relationship between your doctor and your health insurance company?

If your doctor receives a set fee per patient (capitation) or receives a bonus forminimizing costs (incentives), your healthcare could get shortchanged. A doctormay be reluctant to order tests or referrals under these situations. Gag clauses canprevent doctors from revealing their compensation or discussing treatment options

not covered by the plan. Does the plan you're considering have a grievance procedure? What if something

goes wrong? Can you appeal? Be sure to talk with someone who is authorized toanswer your questions, like the plan administrator -- and keep good records. Whoregulates HMOs in your state and what's the procedure to lodge a complaint ifyou think you're being treated unfairly?

When comparing coverage, it is critical to look into a plan's limitations and exclusions todetermine which expenses are not covered and which are restricted. For instance, manypolicies will pay only for treatment that is deemed "medically necessary" to restore youto good health. These policies often will not cover routine physical examinations,

cosmetic procedures or even the costs of eyeglasses or hearing aids.

The following is a list of services you might want to ask about when looking into a plan:

covered medical services,

inpatient hospital services,

outpatient surgery,

physician visits (in the hospital),

office visits,

skilled nursing care,

medical tests and x-rays,

prescription drugs, mental health care,

drug and alcohol abuse treatment,

home health care visits,

rehabilitation facility care,

physical therapy,

speech therapy,

hospice care,

maternity care,

chiropractic care,

preventive care and checkups,

well-baby care, dental care and

other covered services.

It's worth looking into how much the service fee is for monthly payments -- and inquiringabout a discount for prepayment.


26/27

Even if you already have health insurance, you'll want to review your policy once a yearto be sure it still matches your needs.

As the health care system continues to change, your health insurance should change withit.

insurance companies, etc.

Most life and health insurance companies market both group and individualhospitalization coverage.

There are also service organizations, such as Blue Cross/Blue Shield, that provide prepaidmedical and health benefits in accordance with state laws that recognize them as not-for-profit organizations and exempt from state premium taxation.

The only difference between the two is that commercial insurers have a contractual

relationship with you and service organizations have a contractual relationship withproviders. With a service organization, you use the services of the contracted doctors orhospitals -- participating providers -- and claims are settled directly with the providers.

Merritt Personal Lines Manual: Check

the Deductibles and Other Useful Tips

As with other types of insurance, the higher your health coverage deductible, the loweryour premium.

For most people, a deductible in the $100 to $250 range is the most manageable. Butcompare other deductibles, too. If your family has been healthy for a number of years,you may want to switch to a deductible of $500 or $1,000. You'll notice a sizablereduction in premiums.

Save money on premiums, if necessary, by taking larger deductibles and covering smallercosts yourself.

Most policies have an out-of-pocket maximum -- when your covered expenses reach aspecified limit in a given policy year, a reasonable fee for the benefits that are covered

under your plan will be paid in full by your insurer and you no longer have to pay the co-insurance. But, if your doctor bills you more than the reasonable and customary charge,you may still be required to pay some of the costs.

Most policies have lifetime limits, too. It's smart to look for a plan with a lifetime limit ofat least $1 million. If it's lower than this, you could run through coverage if you ended uphaving major health problems for several years.


27/27

Finally, remember some general shopping tips.

Be careful of a plan whose description of benefits sounds too good to be true. It may be.Often, agents -- in an attempt to convince you to purchase a policy from them -- will giveinaccurate, exaggerated and misleading descriptions of the benefits provided by policies.

Similarly, agents sometimes try to get you to surrender insurance you already own andreplace your coverage with a policy they are selling by misrepresenting the policy, bymaking an incomplete comparison of the policies or even by telling you that your currentcompany is in financial trouble.

As with all insurance policies, it pays to compare the costs of similar policies availablefrom different insurers.

Shop aggressively when you first buy a policy; after that, change insurers or policies onlywhen you desire to make substantial changes to your coverage. If you cancel one policy

to purchase another, there is generally no refund of premium and you may be subject tonew policy limitations and restrictions.

In short, there is a plan to meet your needs. Remember to review the cost, check thebenefits and the service issues that are important to you, before you make a choice. And,don't be afraid to ask questions.

Documents

Merritt Personal Lines Manual