Aureus Education Fair 2014 @ The Fullerton Hotel Singapore

Are you considering a career change / advancement?

Thinking of a career change? Want to further your studies for a better career advancement? Look no further, as the Aureus Education Fair will bring together the world’s most prestigious universities and Southeast Asia’s most ambitious students for an exclusive one-day event.

Education is an important element and a ticket to an open door to a position in a good company. With so many universities to choose from around the world, sometimes we get confused on which is a better choice. In this education fair, some of the world's most prominent universities from the United States, Great Britain and Singapore will be participating. Aureus Education will be bringing together a highly select group of admissions officers and/or alumni members. Take advantage of this unique opportunity to gain valuable insight into their esteemed programs. Explore what these schools have to offer through a mix of panel discussions and networking sessions: their entry requirements, culture, academic offerings, career/research opportunities, activities and clubs etc.

The schools line up:

Yale University

University of Oxford

New York University 

London School of Economics

Singapore Management University

Nanyang Business School

How can soft skills (e.g. personal branding and interview) and an MBA help you?

Communicating your uniqueness on paper and in person is of paramount importance in a cut-throat admissions climate. Nothing shouts “Look At Me!” more than authentic, riveting and well-constructed admissions essays and interview answers. Keep abreast of your competition by mastering the art of personal branding, effective writing and interviewing via a series of insightful seminars featuring guest admissions directors. There will be different sessions catered to both undergraduate college applicants and graduate MBA applicants.

Participants are also offered the opportunity to complete the Aureus Psychometric Instrument (API). Based on the work of renowned psychologist Carl Jung, this profiling assessment identifies 4 personality types (Nurturer, Philosopher, Protector, and Adventurer) that can be fundamentally defined as dominant innate preferences demonstrated in human relations. Results from the API are particularly helpful for applicants, as they can help you determine what type of environment you would be best suited to study and work in, how you orient your energies, make decisions, and deal with the external world.

More details on the seminars: http://www.aureusconsulting.com/Education_Fair/seminars


How can the Aureus Education fair event add value to your career?

Besides the seminar sessions, you can also take advantage of this event to network with these universities as well as other like-minded candidates who are thinking of further education just like you. There will also be panel discussions for both future undergraduate and graduate students to ask questions and receive insightful answers.

More details of the event schedule: http://www.aureusconsulting.com/Education_Fair/event

Details of the event:

Date: 25th October 2014 (Saturday)
Time: 9am - 5pm
Place: The Fullerton Hotel

To register and for more information on the event itself, visit Aureus Education website here: http://www.aureusconsulting.com/Education_Fair

Aureus Education Fair Facebook Page: https://www.facebook.com/events/534294040035491/?ref=22

*Image credits: Aureus Conculting/Aureus Education website & Facebook Page

*This is a sponsored post by Aureus Consulting*

Seattle insurance producer loses license

The OIC revoked the license of Christopher S. Gloria, 39, of Seattle effect Sept. 26. Gloria was licensed as a Washington state insurance producer and was initially licensed in July 2012. We revoked his license for misrepresentation and fraudulent activity in his dealings with a Washington couple. 

In March 2013, the couple met with Gloria to find out if they could find equal or better whole life insurance for a lower premium than they had on their existing policy. They told Gloria they didn’t want to give up their existing policy, they simply wanted some comparison quotes. Gloria gave the couple documents to sign, which he said were necessary to obtain a quote, but in fact allowed him to replace their existing policies with new ones, underwritten by a different insurance company. Gloria also requested a voided check, which the couple gave him.  

Once the couple realized that their old policies had been replaced with new ones, they instructed Gloria that they wanted their old policies restored. From March through September 2013, the couple repeatedly contacted Gloria and he repeatedly told them it was in the works, even when the old company told the couple their policies were still not reinstated. 

Gloria is not allowed to sell insurance in Washington state or to Washington consumers. He has 90 days to appeal the revocation of his license. You can read the OIC order revoking his license here. 

If you feel you have been treated unfairly or have questions about insurance in Washington state, contact our consumer advocates online or by phone at 1-800-562-6900.

• Related info: Read the OIC’s consumer’s guide to life insurance. 

 

 

How an Average Family Can Retire Within 10 years of Working?

Retirement! It's a word that many people use in their old age. To stop working and not having to worry about money is a dream come true for many. But retirement don't have to happen only when you're old. It can happen when you're young too. When we talk about early retirement, its known as financial independence. This means you don't have to rely on your job for an income to survive any more. Imagine the freedom to do the things you love, the unlimited amount of time you can spend with your kids and see them growing up. Imagine not having to put up with your unreasonable boss and don't have to go through the frustrating mid year and year end appraisals. Then imagine you can pursue what you really like or always wanted to do.

In my previous article, I wrote on how if we saved 75% of our income, we can actually retire in 7 years. Here's the article: Save 75% of your income to retire in 7 years I also wrote that with Singapore's high cost of living, it seems impossible to retire at all with our average household expenses at more than $3600 per month. But, there's still hope for us if we plan it out diligently. With the help of an excel spreadsheet to visualise the numbers and stir up our imaginations, early retirement is certainly within reach. Yes, its early retirement and not late retirement.

So how can an average family in Singapore retire within 10 years of working?

The ideal scenario to retire within 10 years is as follow:

• Household expenses maintain at $2500 per month
• Household income at around $7000 per month
• Invest savings at 5% return after inflation
• During retirement, passive income at 4%

Here's the numbers that shows how your life will unfold each year:

Click image to enlarge

With a household income of about $7000 and expenses at $2500, this household saves about 65% of their income which enables them to retire in 10 years. The age above is only for illustration purposes only so tweak it according to your age currently.


Is $2500 per month expenses enough for a family?

Now, some of you will probably be thinking will $2500 per month for household expenses be enough at all? Am I crazy or something to suggest $2500?

In that case, let's look at higher household expenses of $3000, $3500 and even $4000 with the same level of income at $7000 per month. How long will it take to retire then?

For $3000 expenses, it'll take the household 14 years to retire.

For $3500 expenses, it'll take the household 17 years to retire.

For $4000 expenses, it'll take the household 20 years to retire.

The more expenses you have, the longer time it'll take for you to retire.


Another point we need to take note is that most Singaporeans use their CPF to pay for housing loan instalments. In this case, we can exclude some of the housing cost that we pay monthly using CPF. Since I did not factor in CPF as savings, we should also exclude housing loans paid by CPF as expenses.

$2500 may be enough for household expenses if we take the effort to live a frugal and simple lifestyle.

Is 5% investment return realistic?

For the scenario to work, the investment return must be at a minimum of 5% after inflation on an annualised basis. With inflation at an average of 3%, our investment return needs to be at around 8%. Is this achievable?

If you've invested in the STI ETF in 2002, you would have achieved an annualised return of 9.2% (with dividends) for the year ending December 2013. Here's an article by Shares Investment which reported on it: Instrumental Returns Of The STI Over The Past 10 Years

Just by investing in the STI index fund, one will be able to achieve that kind of return and retire in 10 years. See for yourself whether its achievable?


Is 4% passive income realistic?

For the scenario to work, the passive income must also be reinvested in the first few years before retirement. Thereafter, we assume a 4% withdrawal rate from passive income to sustain our lifestyle. You may be thinking is 4% passive income achievable? Unfortunately, there's no way I can prove that a 4% passive income is achievable. This rate is debatable but I guess if you ask most people who do invest their money in stocks, a 4% dividend yield for passive income is not hard to achieve. The question is will these dividends be sustainable. There needs to be some active managing and rebalancing of investment portfolio involved. When you're retired, I'm sure you'll have lots of time to do that.

Another way is to have an investment property which you can rent out. If you're able to achieve the desired monthly rental to offset your expenses, you also can stop working indefinitely.


Is $7000/month household income possible?

Income is also important for the scenario to work. $7000 household income means $3500 per person for husband and wife. If you don't have this kind of income, not to worry. You can either reduce your household expenses or try to increase your income.

Just remember, to retire in 10 years, you need to save about 65% of your income. If you save 50% of your income, it'll take 17 years to retire. By now, you should be familiar with the formula of how it all works out.


What if I'm single? Can I retire in 10 years?

Now, here's the truth. If you're single like me currently, then it's actually easier to retire as most probably your expenses will be lower. The amazing thing about the formula is that it works for a family and it works for a single person too. It's all in percentages. If you're single and can save more than 75% of your income, then it'll take less than 7 years for you to retire.



Retirement is not about doing nothing all day everyday

Contrary to the believe that retirement is filled with images of old people idling around aimlessly, true retirement is actually the ability to find your own passion and pursue it. It is the ability to do what you love without worrying about money. This is called financial freedom. When you don't have to work, you can actually have more time to think about life and create products which will be beneficial to people and our society as a whole. You can do volunteer work, do part time teaching to help others or maybe write a book. Some of these will still generate income for you but the gist is even if it doesn't, you're still happy doing all of it.

Early retirement aka financial independence is possible. Numbers show us how it can be done and it will become a reality as long as we can see it. 10 years to retirement for your family? Watch and see how things can unfold for your life.


Image credit: s.jfch.net

Enjoyed my articles? 
You can Subscribe to SG Young Investment by Email 
or follow me on my Facebook page and get notified about new posts.

Related Posts:
1. Save 75% of your income to retire in 7 years
2. The 3 Big Decisions in Life - Marriage, Buying a House and Retirement
3. Will we have enough CPF savings to retire on after using it for housing?

Your Perspective of Luxury and an Experience

Before I go on to my next post on how an average family can retire within 10 years of working, I thought it would be good to have a small discussion on luxury. I hope my previous post on saving 75% of your income to retire in 7 years inspired some of you to save up more. But of course if we consume too much luxury, then it is very hard for us to retire. How should we approach luxury in this case?

Almost all of us like luxury. It seems like a human weakness to be attracted to the luxuries of life. That's probably why they are still around even though they are priced at an exorbitant price. A normal meal cost $4 to most people but another meal can cost more than $100 for another person. Similarly for a hotel, a normal room can be priced at below $100 for a night while a suite may cost as high as $1000 a night.

Luxuries are mostly associated with rich people. Rich people are known to live in luxurious double story pent houses, drive luxurious cars such as Porsche and Ferrari and also take business class flights and stay in luxurious hotels when they travel. Average middle class people yearn for that lifestyle and dream that one day they will be in that position. Sometimes, imagining themselves to be in that position makes them feel good. But little did they know that luxuries can be an addiction that destroys their life.

Luxuries can be enjoyed. They are meant to be enjoyed by us. They were created specially to cater to the best of human enjoyment. It is no doubt that indulging in luxurious stuff makes one feel happy. You feel like a king, a VIP as what we call it. However, it is our perspective on luxuries that make a difference between luxuries being good or bad for you.

I did have a taste of being a VIP and an experience of indulging in luxury just last Friday during the Singapore F1 race event. Maybe some of you were there too? A normal walkabout ticket with no seat would cost maybe $30-$50 while a ticket with a seat would cost more than $100 depending on which zone of the track you pay for. I had the privilege to get a hospitality suite ticket which probably cost more than a thousand dollars. I had this similar privilege 3 years ago. This package includes access to the air conditioned suite area which had a good view of the race track, an international five star dinner, an extensive wine selection and of course very good service from the service staffs. The food was good, the service was exceptional and the design of the suite plus watching the F1 race in the comfort of an air conditioned suite is certainly a taste of luxury. There is also a sky terrace where they furnish with sky bars, sofas and even more selection of exquisite food choices.

This was the view of the race track from the suite:

Apart from the five star dinner in the suite, they also had some other exquisite dishes at the sky terrace. Some of these looks foreign to me but I ate it anyway. 

This is how the sky terrace looks like. Totally relaxing sitting on one of the sofas with people serving you drinks as you watch the race from the top.  

I even had a ticket to go to the Singapore flyer where I was given VIP access straight to the flyer cabin without having to queue up on the normal queue. One of the stunning views I took of the Singapore skyline at night. 

So that was my luxury experience. It does feel good to be treated like a VIP. But to me, all these are good to have but not a must. If I've designed my life to make all these a must have, then my life would have been screwed. I know fully well that if I based my happiness only on consuming luxurious goods, then there will be lots of problems.

You see, luxuries can be a drug. It is addictive but there will be problems when over consumed. Remember the first time when you took a sip of good coffee? What was the feeling like? You do feel a boost and feel more awake as what coffee will make out of us. But those who drink too much coffee will always say that coffee doesn't have an effect on them any more. They are numbed to the effect of it. Similarly, if luxuries are consumed on a daily basis, it loses its effect which is suppose to make us feel good.

When luxuries loses its effect, you'll never be satisfied or happy no matter how much you have. It then becomes an addiction to seek even more luxuries where people are willing to borrow money to indulge in it. Over borrowing for a car or a condominium more than what you can afford are signs of over dependence on luxuries to make you feel happy. Some even borrow to travel luxuriously, borrow to buy branded goods. The list goes on.

Even though this was the second time I've been to a hospitality suite, it still feels good as its only once in awhile. Approach luxury with the right perspective to enjoy it fully. It is tough to abstain from it totally so go ahead and indulge in it once in awhile but take caution that over indulging will cause it to lose its effects totally as what some fellow rich people do.

Luxuries are best experienced as a boost and contrast instead of it being part of your daily life.

Enjoyed my articles? 
You can Subscribe to SG Young Investment by Email 
or follow me on my Facebook page and get notified about new posts.

Related Posts:
1. Getting Rich And Spending Money Without Looking At Price Tags
2. 35 and totally broke or $100K savings by age 30?

Visit OIC at the Small Business Fair in Renton this Saturday

The Office of the Insurance Commissioner will be available to answer your insurance questions at the Washington Small Business Fair this Saturday in Renton. 

We can answer your questions about: 

• How to get health insurance, either as an individual or as a small business.
• Benefits that health plans must cover under the Affordable Care Act. 
• Options for small businesses that want to provide health plans for employees.
• Other types of insurance that small businesses may want to consider.

The fair is free, with plenty of free parking and no advance registration necessary.

There will free seminars that cover important, up-to-date topics for all stages of business ownership. Savvy business experts share their knowledge and real-life experiences with you. 

Attendees will be able to connect with 30 federal, state and local government agencies, and business and trade associations.  

Here are the details:

• Saturday, Sept. 27 from 8 a.m. to 3:30 p.m.
• Renton Technical College, 3000 NE 4th Street, Renton.
• www.bizfair.org

Insurance Information Institute: Only 37 percent of renters have insurance

The number of people who rent a place to live instead of buying continues to rise, especially in high-cost urban areas. According to the Insurance Information Institute (III), only 37 percent of renters have insurance on their belongings, compared to 95 percent of homeowners who have a homeowners policy. Read the full report.

“Renters insurance provides a very important financial safety net when there is a disaster,” said Jeanne M. Salvatore, senior vice president and chief communications officer for the I.I.I. in a news release. “And, renters insurance is relatively inexpensive — the average cost of a renter’s policy is only $187 per year, or less than four dollars per week.”

Homeownership has fallen for over the past decade, according to Pew Research. The Northwest Insurance Council reports that up to 45 percent of people in the Puget Sound region rent rather than own their residence. That trend is mirrored in other major cities such as New York, Los Angeles, Chicago and Houston, where renters outnumber homeowners, the U.S. Census Bureau reports.

Landlords typically have insurance to cover the value of the property and structure, but that coverage does not cover the renter’s belongings (contents). A standard renter’s policy covers contents, personal liability, premises medical coverage if someone is injured on the property you rent, and additional living expenses if you have to temporarily relocate from your rental property.

Read more about renter insurance. Need help? Contact our consumer advocates online or at 1-800-562-6900.

Save 75% of your income to retire in 7 years

"Retirement is hard in Singapore." That's what we've heard before from a friend, a colleague or even your own family members. But, it can be easy if we know how to. How about being able to retire when you're young? That's what we call financial freedom.

I've been reading a couple of financial blogs based in the US and one which particularly stands out was the blog called Mr Money Moustache. Oh yes, I like reading other people's blog too even though I own and write one. The owner of the blog retired in his early 30s and he was also featured in an interview with Yahoo! where he explained how he did what he did. This really captured my attention.

In his blog, there's an article titled: "The Shockingly Simple Math Behind Early Retirement". The maths was if you saved 75% of your income, you'll be able to retire in 7 years. How was this number derived? Being curious, i decided to create my own spreadsheet to visualise how it will all work out. True enough, indeed if we save 75% of our income, we can retire in 7 years.


The scenario to retire in 7 years

Here's the scenario:

Let's say if you earn $30,000 a year which is about $2500 a month. I think this amount should be quite achievable for most of us in Singapore. If we save 75% which is $22,500 or $1875 per month, we'll be left with $625 to spend per month.

Next, we must invest the $22,500 savings and assume a 5% investment return, after inflation, for the next 7 years compounded. By the end of the 7th year, this amount would have grew to $204,301.70

The last part of the equation is this:

If the $204,301.70 invested generates a 4% dividend yield, the dividend income will be $8172. This gives us about $681 to spend per month. That's it, you can now retire and stop working. The dividends will continue to provide income for you for the rest of your life. According to my spreadsheet below, if you start working at the age of 24, you'll be able to retire by age 31. Sounds good?

Click to enlarge

Is it achievable in Singapore with our high cost of living?

Now comes the problem. The problem is in order to retire in 7 years, your expenses have to remain the same after 7 years. That means you can only spend $681 per month. Is this enough in Singapore? It may be enough if you're single but if you got a family, then it would certainly not be enough.


How much do you need to retire in Singapore?

An average household would already be paying about $1200 for their housing loan instalment. The above scenario of only spending $681 is certainly not enough. Adding up other miscellaneous bills and daily expenses, the average household expenditure would most likely be about $2500-$3000 per month.

But wait, some of you may say $3000 is still not enough for a household expenditure. Straits times just reported recently that "the average household spends $1,188 a month on food, $811 on transport, $154 on package tours and holidays, $138 on other recreational and cultural pursuits, and $156 on clothes and footwear." This amount is not even inclusive of the housing loan. So if we add up the $1200 housing loan, this amount would be $3647.

With an expenditure of $3647, how much do you need to earn in order to save 75% of your income and retire in 7 years? The answer is $14,588. Yes, you need to earn $14,588 to save 75% of your income in order to retire in 7 years!


I don't want to save 75%. I can only save 10%

Some of you may think that saving 75% of income is too much. How about just saving 10%? If you save just 10% of your income, you'll need to wait 51 years before you can retire base on the earlier assumptions. Do you want to wait 51 years before you can actually retire?

If you save 50% of your income, it'll take you 17 years to retire. It's all about the numbers and numbers can tell you the story.

Saving 50% of your income to retire in 32 years

Click to enlarge

How to solve the problem and retire earlier?

As readers of SG Young Investment, most of you would already know that we can increase income or decrease expenses to have more savings. However, in this case, its the savings percentage that is important. If you increase your income and at the same time increase your expenses at the same proportion, then your savings rate would still remain the same. If your savings rate don't increase, you'll never see a difference in your wealth.

If you're able to increase your income but still maintain the same level of expenses as before, then you're in for a great future. If we earn $2000 now and can only save $400, its just 20% savings rate. But if we manage to double our income to $4000 and still maintain the same level of expenses as before, then savings rate get bumped up to 60%. Young people have the potential to make more money in time to come especially in Singapore where opportunities are plenty while older people may already be making quite a substantial amount of income right now. We can start planning for retirement no matter the age we're at. You just need to know the numbers and see your future. The percentage of your savings plays a big role in retirement planning.

In my next post, I'll show you how an average family in Singapore can retire within 10 years of working. Stay tune.

P.S: Here's the video by Yahoo of how a man retired in his early 30s as what I wrote in the beginning of this post. Watch it here: http://finance.yahoo.com/video/retired-30-144216321.html

Enjoyed my articles? 
You can Subscribe to SG Young Investment by Email 
or follow me on my Facebook page and get notified about new posts.

Be in the know with electronic updates from OIC

The Washington State Office of the Insurance Commissioner recently launched a new digital communication service to help consumers, media, partners and insurance professionals stay informed about Washington insurance news. 

 

Features include:

• Electronic notification: Receive alerts by email or text message—no password is required.
• Subscription management: Manage your profile online, including subscription topics and frequency of updates.
• Automated web alerts: Receive notification when new website content of interest to you is posted.

You can select your subscription preferences, update your subscriptions or cancel this service here.

Why it is hard for most Singaporeans to retire early?

I was about to publish some of the post on early retirement which I wrote over the weekends until I saw an article by business times today which shows how much Singaporeans are saving? These statistics was from the recent household expenditure survey which was published last week. Most of us would already have read that average monthly household income increased to $10,500. This number was met with many sarcastic remarks on social media. We would think how can this be true when most of us do not have that kind of household income? Is their average really average?

The purpose of my post today is not to debate on whether the income figures were correct or not. Rather, it is all about the report by business times which showed another angle of that report. How much are Singaporeans saving?

Here are the saving figures:

• The 41st-60th percentile, who are essentially the middle class, are saving about 44%. 

This 44% seems to be a good savings rate but if we look closer, this savings include employer and employee CPF contributions. This is essentially not cash savings which we have in our bank. If we deduct away those CPF savings, we're left with about 9% to 15% cash savings since most of our CPF contributions is around 30%-36%. 9% savings is quite a low amount. If you calculate, saving just 10% of your income will probably take you 51 years to retire.

Credit: http://www.aag.com/

Furthermore, the figures do not include non consumption expenditure such as income taxes and house purchases. We know that house purchases make up a big chunk of our expenditure. This makes the figures rather distorted.

It is no wonder Singaporeans find it hard to retire in Singapore. Most still rely on their CPF savings but the problem is most of us also use the CPF for housing purposes. If we continue to do that, we'll always realise that we can't meet the minimum sum and can't retire comfortably.

If we want to retire early at age 55 or even earlier, then we need to have more cash savings. It is no use depending on the CPF for savings and then realise you can't take most of your money out at retirement age. CPF was structured as a social security or safety net. It is not for us to take the money out in lump sum for enjoyment in old age. If we want some enjoyment and not having to worry about not enough money, then we need to plan and save up in cash.

In the next few posts that I'll be publishing, I'll show you how most of us can retire early. Early retirement means in 10 years and possibly within 7 years. I've done up some calculations which will show you how exactly it is done. Watch out for the next posts soon.

Once you reach that stage, you can continue working but you don't have to work for money any more. You can start to work on the stuffs you love, spend more time with your family and kids and even contribute more to society. People who have enough money to retire don't usually sit there idling around. In fact, they become more motivated to produce things which are beneficial to the society as compared to when they are just working for money.

Enjoyed my articles? 
You can Subscribe to SG Young Investment by Email 
or follow me on my Facebook page and get notified about new posts.

SGX's very own stock screener - StockFacts

Are you confused on what are the stocks you should invest in? How to find the right ones among the hundreds of companies listed on the stocks exchange? I was playing around with SGX's very own stocks screener called StockFacts and its quite interesting. The screener provides quite a comprehensive screening criteria such as PE ratio, PB ratio, dividend yield, debt to equity and even 5 year revenue growth rate.

I used the below 5 criteria to screen for some stocks listed in Singapore and it returned 29 results. Quite a good selection of stocks to research on it further.

The screener definitely helps to screen out specific stocks which meets our investment criteria. Of course as investors, we don't just buy a stock base on valuations or even just base on dividends. We need to research more on what is the company about? Are its earnings sustainable? Basically, we need to know the business and how it operates. Nevertheless, this stock screener is good to use for a start.

Here's the link to it: http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/stockfacts

P.S: Here's another good post on the stock screener by a fellow blogger, GV. You can read it here: 3 Easy Steps to Find 83 Value Stocks using SGX Screener in 20 Mins • Giraffe Value Investing

Enjoyed my articles? 
You can Subscribe to SG Young Investment by Email 
or follow me on my Facebook page and get notified about new posts.

Washington businesses refunded more than $1 million in overcharged commercial insurance rates

This month, Zurich North America insurance group completed reimbursing Washington businesses $1.02 million and more than $123,000 in interest on 568 commercial auto policies that had been overcharged.

In October 2013, the OIC took action against a handful of Zurich North America’s companies for overcharging Washington businesses for commercial auto insurance policies. The companies are American Zurich Insurance Co., American Guarantee & Liability Insurance Co., Colonial American Casualty & Surety Co., Fidelity & Deposit Co. of Maryland, Zurich American Insurance Co. of Illinois, and Zurich American Insurance Co. 

The companies agreed in a consent order to pay a $50,000 fine and to refund policyholders, including 8 percent interest, who overpaid based on the incorrect rates.

This month, we closed out the case when Zurich North America reported it had completed the terms of the agreement. The overcharges happened because the companies failed to notify the OIC that they were going to continue to use their old rates, rather than charging new rates filed on their behalf by an insurance rating organization they belonged to. 

OIC orders unlicensed golf tournament insurer to stop doing business in Washington

Yesterday, the OIC ordered L & B Enterprises Inc., also called Tournament Pros, to immediately stop selling insurance in Washington state. Tournament Pros, based out of Maryland, has sold at least 18 insurance contracts for golf tournaments in our state since 2012 without being authorized to do so.

Golf tournaments often buy insurance to pay hole-in-one prizes or prizes for chipping or putting contests. These tournaments are popular fundraisers, as players pay an entry fee and fees to participate in contests.  

The OIC received a complaint after a May 2013 armed forces golf tournament at Bremerton's Cascade Course at Gold Mountain. The tournament organizer purchased a contract for a $10,000 hole-in-one prize on the 185-yard third hole, but a golf course employee mistakenly hung the prize sign on the 14th hole. According to the tournament sponsors, a sailor who had flown in from another state to participate in the tournament got a hole-in-one on hole 14, which was longer at 228 yards from the tips and more difficult. The tournament sponsor reported that it asked Tournament Pros to pay the prize; the company declined but offered to give the golfer $500. The tournament sponsor then complained to the OIC, and our legal team found out the insurer is not authorized to sell insurance in Washington. 

Tournament Pros has 90 days to request a hearing to contest the order. It also can choose to become an authorized insurance producer in Washington, at which point it would be allowed to continue to do business here.

In February 2014, a hole-in-one insurer who had been illegally doing business in Washington and had defrauded several charity golf tournaments and golfers was sentenced in King County Superior Court to $15,000 in restitution to his victims. Kevin Kolenda of Connecticut had been defrauding people in a handful of states for more than two decades and was extradited to Washington to face the charges.

OIC is looking for health care network, consumer advocacy professionals

OIC opened two new jobs this week, both working in our Tumwater headquarters.

The first job will help us ensure that health insurance plans have adequate networks of medical providers across the state. The position is a Functional Program Analyst 3 in our Rates and Forms Division. The person in this position will review network access reports and provider agreements that health insurance companies submit to us. The position reports to our Healthcare Consumer Access Manager and plays a crucial role in our state's implementation of the Affordable Care Act.

The position is open until filled. Read more about the position or apply at careers.wa.gov.

The second job is an Office Support Supervisor 2 in our Consumer Protection Division. We have a robust consumer protection program, working directly with Washington consumers and insurance companies. This position will supervise our consumer hotline staff, oversee consumer hotline operations, serve as the public records coordinator for the division and report on the division's performance.

This opening closes on Sept. 25. Read more about the position or apply at careers.wa.gov.

Can my age be used as a rating factor in auto insurance?

While it may sound like age discrimination, the answer to this question is "yes." A person’s age can be and usually is used as a factor in determining auto insurance rates. Age is connected to risk and is linked to accident frequency, accident severity, and claim costs, so insurers are allowed to factor it into rates. 

There are other rating factors typically used by insurers, which you may review on our website.         

If you find yourself experiencing a little sticker shock when you see your auto insurance premium, it’s always a good idea to shop for competitive auto rates every now and then. We recommend people do that in order to determine if they can find lower rates for the same coverage. Young drivers can sometimes get discounts for good grades and senior drivers can sometimes get discounts for taking driving classes for people aged 55 or older. Ask your agent or insurer about possible discounts.

Questions? You can contact our consumer advocates online or at 1-800-562-6900.

Seattle Children’s Hospital officially withdraws legal complaint

Seattle Children’s Hospital officially withdrew its legal challenge with the OIC on Sept. 5 after it reached an agreement with Regence Blue Shield to include some services in Regence’s health provider networks for 2014 plans.

Seattle Children’s Hospital initiated legal proceedings about a year ago when Premera, Regence Blue Shield and Coordinated Care decided against including the hospital and research facility in their medical networks because of cost concerns. Seattle Children’s argued the OIC shouldn’t have approved 2014 plans from the three carriers because they excluded the facility from their networks for routine pediatric medical care. The plans argued Seattle Children’s charges for routine pediatric medical care would drive up their costs; Insurance Commissioner Mike Kreidler sided with the plans in favor of “narrow networks” to be able to provide cost-effective services for consumers. No families who needed specialty pediatric care were turned away from Seattle Children’s or had to pay out of pocket for those services.

Seattle Children’s and Premera Blue Cross last month reached an agreement to include the hospital in its medical networks, effective Sept. 1. Coordinated Care earlier this year made a deal to include the hospital in its network and was removed from the case.  

OIC is in the process of reviewing 2015 plans that are sold outside of the Washington health benefit exchange. At the end of August, OIC approved 90 health plans for sale inside the Exchange, called Washington Healthplanfinder, with a record low 1.9 percent average rate change.

Pierce County woman ordered to repay insurance company for fraudulent car claim

A Pierce County woman was sentenced to 60 days of electronic home monitoring and ordered to repay $17,426 to Travelers Insurance for attempting to collect insurance money for a car she claimed was stolen and destroyed in a fire. Donica Santos, 40, pleaded guilty to one count of first-degree theft and one count of insurance fraud in Pierce County Superior Court last month.

In March 2012, a driver reported Santos’ vehicle was on fire on the side of Reservation Road in north Thurston County at about 1:40 a.m. on March 16, 2012. Santos reported to Travelers’ Insurance Co. later that day that her car had been stolen from her Tacoma home and was a total loss. Santos told investigators that she had last seen her vehicle the previous night and had not left her house or used her cell phone between 10:30 p.m. and 2:50 a.m., when police arrived at her house to investigate.

However, Santos’ cell phone records showed she used her phone repeatedly late the evening of March 15 and the early morning hours of March 16; several of the calls were made in Thurston County, near where her 2006 Chrysler 300C was found on fire. 

Travelers denied the claim, but was required by state law pay off the car loan balance of $17,426.

Santos was charged in December 2013 after she was investigated by Insurance Commissioner Mike Kreidler’s Special Investigations Unit.

Lic Jeevan Shagun Plan 826 Premium Calculator

Close Ended Plan -  Available for 90 Days only from 01-09-2014 till 29-11-2014.

Lic Jeevan Shagun Single Premium Payment Plan 

Jeevan Shagun Benefits:

Death Benefit:

On death during first five policy years:

Basic Sum assured i.e. 10 times the tabular single premium shall be payable.

On death after completion of five policy years:

Basic Sum assured i.e. 10 times the tabular single premium along with Loyalty Addition, if any, shall be payable.

Survival Benefit: 

On Life Assured surviving to the end of the specified durations, the following Survival benefit shall be payable.

At the end of 10th policy year: 15% of the Maturity Sum Assured.
At the end of 11th policy year: 20% of the Maturity Sum Assured.

Maturity Benefit:

On maturity,  65% of the Maturity Sum Assured along with Loyalty Addition, if any, shall be payable.

Loyalty Addition:

Depending upon the Corporation’s experience, a policy shall participate in the profits in the form of Loyalty Addition. The Loyalty Addition, if any, shall be  payable on death or surrender, provided the policy has run for atleast  five policy years, or on policyholder surviving to the maturity, at such rate and on such terms as may be declared by the Corporation.

ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS:

Minimum Entry Age                                         : 8 years (completed)
Maximum Entry Age                                         : 45 years (nearest birthday)
Minimum/Maximum Basic Sum Assured        : 10 times of tabular single premium paid
                                                                                        

Minimum Maturity Sum Assured                      : Rs. 60,000/-
Maximum Maturity Sum Assured                      : No Limit
Maturity Sum Assured shall be available in multiples of Rs. 5,000/-.

Policy Term                                                        : 12 years
Premium payment mode                                   : Single premium only

Lic Jeevan Shagun Table no 826 Plan Presentation

Lic Jeevan Shagun Table no 826 Plan Premium Chart

Interested to buy it, please contact at 9811362697.

Related Plans :  LIC Single Premium Endowment Plan - 817
Other Plans :  LIC New Jeevan Anand Plan Table No - 815, LIC New Endowment Plan Table No - 814