The insurance industry is backing an ethics exemption that would allow agents and others to directly advise governmental clients on services and products, a form of business communication that is currently prohibited under Louisiana law.
Robert Page, an insurance agent from Houma who this fall becomes president of the Professional Insurance Agents Association, a national advocacy and trade group, admits the proposal jumps off the page, especially since it’s accomplished through an ethics exemption. Insurance agents have sought official opinions from the attorney general’s office in the past to interpret the vague area of the law. Page has such an opinion, which allowed him to advise a public entity as long as he wasn’t a part of the decision-making process.

“We’re not employees, we’re not taking part in the final decision,” he says. “We should be able to treat all of our clients the same.”

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Question: When I refinanced my mortgage six years ago, my lender appraised my home at $274,000 but I borrowed only $220,000. I have made several improvements since then and have paid that loan down to $203,000.

Now I want to refinance to lower my interest rate (not take any cash out of the property) and the lender says the appraiser now values my home at $186,000, so my application is being denied. I think they are just trying to keep me at the higher interest rate. Is there an agency to report these companies to? A.H.

Answer: The short answer is no, at least not that I know of. But you can appeal to the lender for another valuation. After all, even though values are not rising in some markets and declining in others, a slide of almost $90,000 in six years seems way out of line.

The art of appraising is just that, an art, not an exact science. And even though those who practice it hold the fate of sellers, buyers and refinancers in their hands, they are not gods. Indeed, they are fallible, just like everyone else. And if you honestly believe yours has made a mistake, you can ask for a second opinion.

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More drop collision and theft coverage as economy takes toll.

Hundreds of thousands of motorists in financially beleaguered Michigan have downgraded their auto insurance — a money-saving gamble that could leave them without a ride if their vehicle is stolen or smacked by another car.

The latest available data shows that nearly 300,000 comprehensive policies were dropped from 2000 to 2004 — a trend that has continued, some large insurers say. Comprehensive covers vehicle theft — Detroit has nearly 100 reports a day — and deer-vehicle accidents, a growing suburban problem.

Another 28,500 got rid of their collision policy, which covers damage from another vehicle, while many more are reducing coverage or raising deductibles to save money, agents say. Collision and comprehensive policies are not mandated by law, although most bank loans require both in addition to liability — which every vehicle owner must have. When drivers scale back on insurance to save money, other drivers are not affected. But those who reduce coverage could face sometimes costly repairs.

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PHOENIX, AZ — They offer struggling homeowners kind words and, most of all, help.

The calls come quickly, sometimes less than an hour after foreclosure proceedings are filed. Fliers and handwritten letters promising assistance fill homeowners’ mailboxes.

For those on the verge of losing their home, foreclosure-rescue groups seem like their only hope. But many so-called rescuers aren’t helping at all.

Instead, their offers are thinly veiled schemes to take control of a struggling homeowner’s house and strip any equity left in it.

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Reverse mortgages are becoming more readily available and popular as a financing option. These mortgages are generally used by older people who have accumulated a substantial amount of equity in their home. Most lenders require the borrower to be at least 62 years of age. Reverse mortgages are a good way for them to subsidize their retirement income.

The way a reverse mortgage works is by the lender making payments to you based on the value of the equity in your home as opposed to you making payments to a lender with a traditional mortgage. Taxes and interest are added to the amount that needs repaid, decreasing the equity in the home. The lender gets their money after the house is sold or when the owner dies.

Most reverse mortgages do not have to be repaid for a long time and some not at all, as long as you continue to live in the property. The amount you are loaned is based on your age, the value of your home and the current interest rates.

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Four private insurance carriers enticed by changes in law to offer coverage in Florida

Florida’s scary property insurance market is becoming more welcoming to new insurers thanks to recent changes in laws that are helping them financially.

Four new homeowners insurance carriers have entered the Florida market since the state passed legislation in January to lower premiums and entice new carriers to write policies.

Another three companies have applications pending with regulators to begin doing business in the state, according to the Florida Office of Insurance Regulation.

New carriers entering the market is a sign companies are finding it more attractive to do business in the Sunshine State after the Legislature expanded the Florida Hurricane Catastrophe Fund in January to give insurers cheaper reinsurance, which is insurance for insurance companies.

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As thousands of baby boomers decide to retire every day, many suddenly realize they don’t have enough income to provide for a comfortable lifestyle. Meager Social Security income certainly isn’t the answer.

But there is an easy solution. It’s a reverse mortgage, which can provide lump sums of cash for any purpose (such as a new roof, new car, trip around the world, bill payoffs, or something frivolous), a credit line for emergencies or investments (except in Texas), or lifetime monthly income even if you live to 110.

Or, you can select any combination of the above. The best part is tax-free reverse-mortgage money never needs to be paid back as long as you live in your principal residence. Also, there is no personal liability.

Even if your home plummets in market value, the reverse-mortgage lender must honor its agreement and can never force you out of your home (as long as you live in the home and pay the property taxes and the homeowner’s insurance).

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Everybody’s doing it — or at least, it sure seemed that way a few years ago. I’m talking about refinancing your mortgage. It made a lot of sense in the past, especially when interest rates dipped into record-low territory. But now that interest rates have been inching up, does it still make sense? Here are a few thoughts.

If you just never got around to refinancing in the past few years, you shouldn’t think you’re out of luck just because interest rates rose a bit. They’re still very low, relatively speaking.

Remember that when you refinance, you can get more than a new interest rate; you can get a whole new mortgage. In other words, you can exchange one for another that offers better features. Don’t like your 15-year mortgage? Refinance into a 30-year one. Don’t like your adjustable-rate mortgage (ARM)? Refinance into a fixed-rate one.

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The market for real estate in India will grow five-fold to $60 billion by 2010 and $90 billion by 2015, the Dubai-based organizers of a major realty fair in the capital has announced.

“‘The Indian real estate market has emerged as one of the most attractive options to invest in international markets,”‘ said Satish Khanna of Al Fajer Information and Services, the organizers of Asian Real Estate Show 2007.

“‘In mature markets of advanced countries, developers can at best hope for 5-7 percent return. But in India, real estate investment yields are in the range of 20 percent,”‘ he said on the margins of the three-day show that started April 13.

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Fred Shields, of Tinley Park, wants to know why the state may pass a law that would make it legal for illegal immigrants to drive in Illinois.

“They’ve violated the law already,” he said. “Why should we reward them by making it legal for them to drive a car?”

The Illinois House, by a four-vote margin, has passed a measure (HB 1100) that would allow undocumented workers to get something called a driver’s certificate, which would have a different color code than a regular driver’s license.

The main arguments for such a law, as far as I can tell, are that requiring illegal immigrants to pass an exam of some sort would improve traffic safety and that once they had a certificate, they could obtain automobile insurance.

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