Help Me With Sign Michigan Banking Presentation

Help me with industry sign banking michigan presentation online

all right uh hello everyone my name is zach dillinger and i work in the communications area at the department of insurance and financial services or diffs as we call ourselves now with me today as moderator i have ian oberg also with us are auto insurance analysts parker fisher and joe stoddard now joe and parker will be helping to answer your questions a little bit later on and speaking of questions if you click on the speech bubble with a question mark somewhere on your screen it's a little different for each type of platform you'll be able to type in your questions so we are here to dive a little deeper into these changes to auto insurance and help you understand what's happening and how to move forward now we do know that the changes can seem big but we are here to help and make sure that you understand the changes that are coming this summer and into the fall as you renew your policy and we will also provide you with resources including our website our videos and our publications now you'll also be able to watch this presentation again later on our website as we have previously recorded it and i'll tell you how to find all that a little bit later so with that let's get started okay there we go sorry about that uh first a little background about diffs so we are fee funded and we do not require your tax dollars to operate we regulate michigan's insurance and financial industries now this includes insurance agents insurance companies mortgage companies deferred presentment companies sometimes called payday lenders as well as state chartered banks and credit unions now in all that we do our guiding principle is that we are regulators and that means we work for you as a consumer protection agency now in our day-to-day work we work to foster economic opportunity for michigan consumers seek to provide fair access to institutions that are safe sound and entitled to public confidence and as we are here doing today provide financial and insurance education to help people understand their options so now that you know a little more about who we are let's move on to the changes to no fault so to understand the changes to the law you first need to know that the basic michigan auto insurance policy which you must buy to drive legally has three mandatory parts or coverages as we call them in the insurance world those three parts are property protection insurance or ppi personal injury protection medical coverage we call those pip and residual liability bodily injury and property damage now that is quite a mouthful so we do call that bipd for short now i'll only be speaking about how the new law affects the last two those are the changes that you're going to have to do something with so be a pip and bipd that's the order for the day now on the screen you should see the big picture changes these are the key changes that this new no fault law makes to the way our auto insurance works here in michigan so number one the new law provides drivers with a choice for the first time on the level of medical coverage that they want to buy it lowers costs while maintaining the highest benefits in the nation and it increases consumer protections now most of these changes that i'm going to talk about take effect for policies issued or renewed after july first so just about three weeks ago here is when these first policies started to take effect so with that let's start with pip now remember that pip medical coverage is one of those mandatory three it pays for medical care recovery and rehabilitation if policyholders are hurt in an auto accident now under the old law everyone had to have unlimited medical coverage you did not have a choice but now you're going to get to choose a level of pip which is right for you your family and your budget now the new available limits equal or exceed the highest benefits in the country and michigan is the only state where unlimited pip medical continues to be an option that you have so there are six choices that you're going to get to choose from and those options are unlimited coverage per person per accident so again that's what we have now and you can choose to continue that coverage if you want there's a up to five hundred thousand dollar in coverage per person per accident limit now options three and four you'll see both say two hundred and fifty thousand option three is a two hundred fifty thousand dollar in coverage per person per accident limit now option four is that same limit but it allows you to exclude certain people from your household we can talk a little more about that later now option five is up to fifty thousand in coverage per person per accident and that's available if the named insured is enrolled in medicaid and everyone else in their household are either also enrolled in medicaid have another form of qualifying health coverage or another michigan auto insurance policy which provides pip medical coverage now finally option six is a medical pip opt out now this is available if you have medicare parts a and b and all the other members of your household either have qualifying health coverage or again another michigan auto insurance policy which provides pip medical now it is important to know that if you do not make a specific choice you will default to receiving unlimited pip medical and you'll pay the premium associated with that option now earlier i made those three bullet points first one was this new law would lower costs while maintaining benefits what you see here on the screen is one of the most important ways of doing just that each insurance company will be required for the next eight years to reduce statewide average pip medical premiums now the amount of the reduction depends on the level chosen so for the unlimited option it's a required average ten percent reduction for that five hundred thousand dollars choice it's a twenty percent reduction with the two hundred and fifty thousand dollar options it's a thirty five percent reduction and finally for that fifty thousand dollar option it's a forty five percent average reduction now here are some additional ways that this new law reduces costs for the first time in auto insurance we will have a fee schedule now unlike with health insurance or medicare previously auto insurance did not have limitations on what a health care provider could charge for their services after an accident now this fee schedule is a required cost control measure between the auto insurance companies and those health care providers so doctors nurses ambulance services things like that to make that pit medical care more affordable for consumers now the law sets a schedule of fees that can be charged by providers for pip medical services and this provision will take effect after july 1st of 2021 so that's next year and it's very important that you know that you're not going to lose care it just means that healthcare costs will be better controlled now also on the screen you see the michigan catastrophic claims association or the mcca and their assessment now i am sure you have seen the mcca in the newspaper or on tv but i'll tell you what it is so the mcca is an association of auto insurers it's required by the state legislature now that group reimburses member companies for pit medical costs which exceed an identified amount in the event of a catastrophic injury the mcca has already announced that as a direct result of this new law it's able to lower its per vehicle assessment starting july 2nd 2020 so again just about three weeks ago now and this will save michigan drivers at least a hundred and twenty dollars per car the fee on july first would have been 220. now it's a hundred and drivers choosing less than a limited pit medical will not pay any assessment to the mcca going forward now one of the most important parts of this new law is that it increases consumer protections in the insurance market and helps us here at diffs make sure that the market is fair that to do that the new law does a number of things but i'm going to tell you about these four number one it eliminates certain non-driving factors from the rating process so when i say rating process i mean how your insurance company decides how much your coverage should cost and this new law prohibits those auto insurance companies from using your sex your marital status your homeownership status your credit score your educational level your occupation and your zip code in setting your auto insurance rates now number two it created the fraud investigation unit which is a new unit within diffs which investigates criminal and fraudulent activities related to the insurance and financial markets now those folks worked with the attorney general and law enforcement agencies to prosecute these crimes and this is an important double benefit for us because not only is it a very important consumer protection but it's also a cost savings method because auto insurance fraud drives up all of our premiums everybody who drives drives up that premium now number three the law requires prior approval so now auto insurance rates policies manuals forms all of those things must now be filed with and approved by us here at diffs prior to being offered for sale to consumers now number four does increase fines and penalties so the new law allows for increased fines on insurance companies insurance agencies and licensed agents for certain violations of the law now as i said before you will need to choose a coverage level for pip that's appropriate for you based on your needs and your budget now to do that your auto insurance company or agent will give you a form and that def that form will describe the benefits and risks of the coverage options that you have now you may want to talk with the auto insurance agent or company to discuss your personal auto insurance needs before making your choice and when you do go to make that choice depending on the level of coverage you choose you might need to bring some information with you now that information could include something from your health insurer or your employer which identifies individuals covered on your health insurance you may need a statement as to whether your health policy complies with the law which means it does not exclude or limit auto accident injuries and has a deductible of less than six thousand dollars now earlier i talked a little bit about qualifying health coverage so what i've just said there that is the meat of the definition of qualifying health coverage so it does not limit or exclude auto accident injuries and has a deductible of less than six thousand dollars now finally if you're a medicare or medicaid participant and you're gonna seek either that option five fifty thousand or option six opt out you will need to bring proof of enrollment uh in that program with you now here is a sample what that pip form uh that your company or agent's gonna give you what it might look like now i say it might look a little different because each company can make the choices to the how the form looks but it will still contain all the terms and information that you will need to make your choice now it is a four-page form but you only have a couple of small parts to fill out and all the information you need to do that is on the form itself now on screen you see the first page of the form which has some definitions of words that will be used and some other important information that you should read now here i want to point your attention to our website which is michigan dot gov forward slash auto insurance on that website this form is posted so you can actually download it and read it and know what it says prior to getting the form that you're going to have to fill out so now let's take a closer look at this form and what you'll actually need to do to make your new pip selection so that was page one now excuse me on pages two and three section a of the form explains the risks and benefits of those coverage options that you have now this means it lists out the options we talked about earlier and tells you in plain language what each choice would mean for you and the potential trade-offs you make when you choose that option page four has section b now section b is where you'll actually make your choice by initialing the form next to one and please make sure it's only one of those options which are available to you also if you choose that 250 000 with exclusions option that we talked about a minute ago this is where you would list the names and birth dates of the household members that you are excluding from your pit medical coverage remember that you only need the names and birthdays of those which you intend to exclude from pip medical not everybody in the household just those you want to exclude uh on all page four you'll also find section c now section c you'll need to initial the form next to four statements which confirm that you understand what you're choosing and how it applies to you now finally you'd sign and date now once you've given that form back to your agent or your company you will have finished making your pip choice so as you can see it is a fairly simple process but it is a very very important one and you really need to understand before you make your choice so be sure you have carefully considered all of your options before you do make your selection now with that we finish with what we need to talk about with pip so let's move on to bipd now earlier i mentioned that there are those three mandatory coverages to a michigan auto insurance policy this is the second and final one we're going to talk about today under this new law another choice you're going to get to make is on your level of bi coverage so bi is the portion of a no-fault policy that will pay up to certain amounts if the policy holder is found legally responsible for certain damages it pays for those claims which are made by others against you now currently the minimum bi coverage level is twenty thousand dollars for a person who was hurt or killed in an accident forty thousand dollars for two or more persons in any one accident and ten thousand dollars for property damage in another state now i say currently so that means those policies which were issued or renewed prior to july 1st so under this new law the new law will allow drivers the ability to choose bi limits that best suit their family needs now those old twenty thousand per person and forty thousand per accident limits had not been adjusted for inflation in over thirty years as we all know things have gotten more expensive in the last thirty years so drivers will now have the choice of purchasing coverage of fifty thousand per person and one hundred thousand per accident or even higher to protect themselves against the increased potential for lawsuits now if you do not make a choice the default minimum is two hundred and fifty thousand dollars per person per accident and five hundred thousand for two or more persons in any one accident you should consider consulting legal and financial advisors to determine how to best protect your assets and income from this new scope of financial liability before you do work with your licensed auto insurance agent to make that selection now like with your pip choice your company or agent will give you a form to fill out when you make your bipd choice this on the screen is the approved form and your company should use a form which is identical probably won't say sample on it but other than that it should be the same now we've also posted this form on our website as well michigan dot gov forward slash auto insurance so you can zoom in and read it when you get a minute now as with the pip form it's very important that you read and understand this form before you then just have to fill out a couple of small areas and then sign the form to make your bipd selection now i also want you to know that we have produced videos on how to fill out the bi and the pip forms and you can find those on our website as well so let's look at this bi form a little closer on page one you'll find part a now that explains bi coverage in detail part b explains the potential risks you face as a driver in michigan and explains how bi coverage can help protect you part c you'll initial the form in three places next to three statements that confirm that you un erstand the risks and benefits of the coverage option you are choosing finally part c you'd simply sign and date the form now once you've done that and given the form back to your agent or company you will have completed the bipd selection process so let's quickly recap what we've just seen your agent or insurance company will give you two forms to complete the pip form is where you'll pick the amount of medical coverage you want to have for your family the bi form is how you you pick how much your insurance company will pay on your behalf if you are at fault in an accident both forms contain all the information you need to make your selection now with that that does cover the big changes from the law that i need to tell you about right now before we do get to your questions though i do want to take some time to tell you a little more about how dips can help you other than our web address which i hope you've written down michigan dot gov forward slash auto insurance uh perhaps the most important thing i can tell you today is that we do want to hear from you now we are not going to be able to answer your individual questions about your specific auto insurance policy or situations things like that but we do have people in our office monday through friday from 8 am until 5 pm to help answer those questions whether they're auto insurance related or general insurance questions or even financial questions those folks are there to help now our call center is housed within our office of consumer services which also handles all complaints that come into our office so if you're concerned that your auto insurance company is i don't know unfairly delaying or denying your claim uh charging you the wrong premium or you know they're just not performing as a required under the law we are here to help now we do encourage you to first attempt to resolve that complaint directly with the agent or company in question but if you cannot reach a resolution you may file a complaint in writing with this via email or through our website speaking of websites we have created a new one to help educate consumers about this new law our new website i've said it a few times i'll say it a couple more is michigan.gov forward slash auto insurance now that page includes a number of great things including information on the changes made by this new law some tips for shopping for insurance how to file a complaint and what that complaint process looks like what to do if you're having issues with your insurance company agency or agent and very importantly a place to report insurance fraud now this website has already been updated several times and it will continue to be updated on ongoing basis to make sure it has the latest information for you as we get further into implementation of this new law so to reiterate we do want to hear from you all of us here at diffs work for you and we are here to help you with these new changes so to quickly go over what we've talked about in advance of your next auto insurance renewal agents and insurance companies will supply the pip and bi forms which describe the benefits and risks of the coverage options you have you may want to consult with your agent to discuss your personal auto insurance needs please do call or email our office if you have any questions about the forms or anything else related to the new auto insurance law our phone number is eight three three ask diffs and our auto insurance specific email is extremely conveniently it's auto michigan.gov now i do want to draw your attention to the website one more time you can find those forms a number of great publications and handouts that you can share with family and friends and those videos as well so it's a very good resource i hope you take advantage of it and check it out so with that i think we've hit the highlights and we can now take some of the questions that you've typed into the chat system please do feel free to ask more questions as they come up throughout the rest of the process and as a reminder click on that speech bubble with a question mark to type in your questions now please remember also that our questions about specific auto insurance policies should be saved for our office analysts now with that i'd like to introduce as moderator today ian oberg ian thank you very much uh our first question will go to parker and the question is do i have to buy unlimited personal injury protection if i don't have health insurance parker all right so um under the new law no one has to purchase the unlimited pip medical option on their auto policy although michigan is the only state where you can have that unlimited pip option people who buy lower pip medical coverage levels or who opt out entirely would have to rely on their health insurance afterwards any after any auto accident injuries after that auto insurance is used first so it's important to know that if you choose a lower level of pip and you don't have health insurance you may be personally responsible for those medical costs that exceed your pit medical coverage if you are in a crash so it's important to factor that in your decision but it doesn't require you we require you to buy the unlimited option thank you very much parker our next question is going to go to joe and this comes from julian kalamazoo julie says i'm on medicaid slash michigan healthy families i don't qualify for option five limited coverage of fifty thousand my health insurance company rep told me quote you would want to choose the unlimited pip because medicaid pays last after all other payment sources are exhausted does this mean i'm required to choose unlimited pip joe so uh thank you for the question julie um this and this kind of goes back to what parker was saying previously but nobody is required to choose unlimited pip if you're not if you don't qualify for option five the the fifty thousand dollar option um everybody is eligible to choose unlimited 500 000 per person per accident or 250 000 per person per accident so so you have three choices and and you're not at all required to choose unlimited pip thank you very much jill parker our next question goes to you uh the question is will the discounts mandated in the new law actually happen how is the state ensuring that insurers are complying with the law parker right so the new law requires that the michigan department of insurance and financial services review and approve every rate filing before it is available for consumers to purchase now our rate filing is basically you know before a product can go to market the insurance company has to file their product with us and we and we review it so for the first time dips has you know engaged with outside actuaries to really review these filings and make sure that the insurers are meeting or exceeding the new rate reduction requirements and not using any of the prohibitive rating vectors and that were included in the new law so all rate filings for the effective date of july 2nd have been reviewed by the department and we have announced that the rate reductions do exceed the requirements in the law for every coverage option um so but it's still important to note that you know your own individual specific rate may depend on your personal circumstances so the reductions are an average reduction uh per company it may vary for your individual rate because you know there are other factors like driving record and the level of coverage you buy so if you buy more it's going to cost a little bit more so it's important to shop around and really look at your coverage that you're selecting and really get something that works for you and your budget thank you very much parker the next question is for joe kind of fits in with what uh julie had asked what is qualified health coverage and how will i know if i have it joe so qualified health coverage is um it's a term that's that's used in the law and it generally refers to uh health insurance that that ensures that auto accident injuries are covered um so qualified health coverage literally means either having uh medicare parts a and b or having a health insurance policy that doesn't limit or exclude auto accident injuries and has a deductible of less than six thousand dollars now to determine whether if you have qualified health coverage um if you if you have medicare parts a and b um your medicare card works as proof uh for qualified health coverage um but if you if you have other health insurance um your health insurer should provide you with a document that that lets you know if it is qualified health coverage or not and you may have to contact your employer's benefit office or insurance company to get the documentation and because you'll need it if you are going to say opt out or or exclude someone from coverage or or choose the the option five fifty thousand per person per accident um all of those require um some sort of proof that you have the uh the health insurance that you're saying that you have so you'll want proof of that before you go and make your your pip choice thank you very much jill next question goes to parker i renewed my policy recently before the july 1st effective date do i need to contact my insurance company or will the changes happen automatically parker right so the law goes into effect for policies that are issued or renewed after july 1. so if you renewed your policy before then um let's say like in may that policy will continue to term until the next renewal unless you want to do something to make a change in between then so you know if you don't want to wait until your next renewal for the changes to go into effect you're free to contact your insurance agent or company and you can get a quote under the new law so you can make an informed decision on any changes you want to make to your policy and hop on to the new system and you know during that time we also still encourage you to shop around and really think about the decision if you do choose to hop onto the new system thank you parker joe our next question is for you is there still a fee for those who are previously uninsured so the law has changed there so previously auto insurance companies could charge a penalty to people who had gone without insurance for a period of time under the new law insurers aren't able to either limit coverage charge a reinstatement fee or increase the premium for a driver solely due to having a lapse in an insurance comp or in insurance coverage this is is in effect for a limited uh period of time it started uh after july 1st 2020 and it continues until uh january first 2022 so uh there is you're not able to be denied insurance or or charged a reinstatement fee uh for that purpose um until uh the beginning of 2022 thank you joe next question goes to parker i have ongoing health issues from a crash that occurred before the law went into effect will i still get care under the new law parker right so the new law it's it's more of a more of an ongoing basis from here forward out when we're talking about new claims so if you if you had an accident and you're still claiming benefits from any complication you're still going to receive those benefits um you know before everyone had the unlimited pick coverage and so you'll still be entitled to those unlimited benefits from a previous crash um you know you know before the new law so you'll still be able to you know receive that care and you will be covered thank you very much parker joe next question i'm a motorcyclist and i'm worried i won't get personal injury protection coverage under the new law if a car hits me is this true joe so as was the case prior to the the changes to the law if a motorcyclist is injured in an accident involving a motor vehicle the motorcycle list is entitled to receive pit medical benefits from the insurer of the owner of the the motor vehicle if the owner of the motor vehicle doesn't have coverage then the motorcyclist would seek pit benefits from the driver of the vehicle and then if if neither of those two people had coverage or if they're the same person and they didn't have coverage um the the um the next order of priority is the motor vehicle insurer of the operator of the motorcycle meaning um the the motorcyclist auto policy um and then the last on on the list is the motor vehicle insurer of the owner of the motorcycle so if you're driving uh a motorcycle that was that was owned by somebody else uh theirs is fourth in that order of priority um if nobody in in the entire of those four people um had pip coverage the motorcyclist would be covered under the michigan assigned claims plan which exists to provide pip coverage to people who are eligible for pit benefits but but aren't required to carry pip coverage so like pedestrians and if the motorcyclist has excess medical bills over whichever pip limit they're subject to the motorcyclist could look or may have to look to their own health insurance to pay expenses or uh they could sue the at-fault driver for their expenses uh depending on the situation um but just to note um just to i guess sum up um you would be uh subject to the the motor vehicle that was involved in the accidents pip coverage if they have it so even if you're a motorcyclist and you have unlimited coverage if you get into an accident with another motor vehicle and they carry 250 000 of pit medical coverage then you would be subject to that 250 limit all right thank you very much joe parker our next question goes to you what are the potential medical implications if you choose a lower level of pip parker right so choosing a lower level of pip medical coverage on its own should not affect what products or services or any sort of accommodations that are covered in that pip plan if you are injured in a crash however there would be a dollar limit on the medical bills your insurance company will pay if you choose a limited option so if you choose the 250 000 in coverage that's the maximum amount that the auto insurance company will pay and after that you know you might be personal for any bills or anything that occurs afterwards that will exceed that 250 000 in coverage so it's important to you know review your options and make sure you choose a coverage level that's right for you and your own risk tolerance and any other plan that you have and really consider your options so thank you parker joe next question is for you will i have to fill out the personal injury protection form every time i renew my policy so um you may or you may not and it kind of depends it could depend on certain um certain insurer choices or or the coverage that you make um so everyone will be offered the pip form when they renew or start a new auto insurance policy beginning or sorry after july 1st 2020 after that you should only have to fill a new form if you're making a change in coverage or if you previously opted out or excluded somebody uh and uh from pip medical coverage and this is done to to make sure that you haven't had a change in health insurance to make sure that that your qualified health coverages is still in effect for the new policy term um and then some insurers just depending on uh their internal procedures um might might choose to to have their insurance fill it out at every renewal um there's a minimum amount of times they have to give you the form but there's no there's no nothing that prevents them from from having an internal policy that that requires people to fill out the form every time thank you very much jill our last question comes from tammy and we'll give this one to parker parker tammy asks is there anything about borrowing or lending vehicles for example if someone borrows my car and their car is insured as well how can i ensure that all parties are covered parker um thank you for your question tammy so i just want to know you know before i get into it a little bit is that um you know every single specific situation you know there might be different coverages involved and depending on the circumstances of the accident you know it will really depend which coverage applies to which person so i can't say for sure because i don't know everything about you know each and every any each and every individual situation but i can you know speak generally so um you know in general um you know a policy may cover the name insured and resident relatives domiciled in the household so you know in your case if someone borrows the car um and they're not in your household they may not have coverage or be able to get coverage from your own auto policy and vice versa however that's just a general rule it's it's not specific to every policy i would recommend reaching out to your insurance company that's involved or your agent because there are some insurers who may provide coverage in the space and some who don't so um so we we recommend working it out with your agents or company and just you know being uh doing a full disclosure and saying hey this is my situation um is there coverage available here and you know if not just look around and shop for an insurer or an insurer who may provide this coverage so um that is what we would recommend is just just to be upfront with the company and ask if there's coverage in this space so thank you for your question thank you very much parker we've gotten to all the questions that have been submitted uh and at this point i'd like to pass the microphone back to zach dillinger to sign us off for the day so with uh with that zach there it is sorry i couldn't find the uh unmute button there for a second um so everyone uh thank you all for attending today uh thank you to um to um everybody on the call we have received a number of questions and we did answer as many as we could uh if we did not answer your question directly or you think of something else afterwards uh you can email your written question to the address which is going to pop to the screen here in a second it's autoinsurance michigan.gov you can also give us a call at 833 ask diffs and please do check our website michigan.gov forward slash auto insurance now there we do have a number of faqs which might have the answer to the question that you have and you can also connect with us on social media as well so linkedin facebook twitter and youtube we have uh presences on all of those platforms and we do post content regularly so thanks to our moderator ian and especially to joe and parker for answering all the questions today so thanks again and all of you i hope that you have a safe afternoon