What's an Injury Worth?

Insurance owners may feel that a personal umbrella insurance
policy is not worth the extra out-of-pocket expense because liability protection is already supplied through homeowners and auto insurance policies. However, umbrella policies typically provide at least $1,000,000 in additional liability protection. Consider the following claims for which sizable damages may be awarded in
personal liability cases:

• Loss of Earning Capacity. This value may be more than just the amount of lost wages. It also includes any loss or impairment of the ability to work in the future.
  
• Pain and Suffering. A dollar value may be placed on the pain caused by injuries, as well as any pain that results from medical treatment.
  
• Permanent and Future Pain and Suffering. Once medical treatment has proceeded as far as possible, the injured may have to learn to live with permanent pain or disfigurement, which may be quantified in a dollar value.
  
• Disfigurement. This value assesses the effects of a lost body limb or scarring as a result of the injury or treatment.
  
• Loss of Function. A value may be placed on the loss of the use of certain body parts or functions.
  
• Loss of Enjoyment of Life. Values can be placed on the temporary or permanent changes that must be made in one’s lifestyle. Perhaps a world-class athlete, or even a "weekend athlete," can no longer enjoy a favorite activity after the accident.
  
• Embarrassment and Humiliation. These feelings can be a very real component of damages, and their value must be given due consideration.
  
• Medical Expenses. All actual costs from the time of the injury can be assessed, along with anticipated future costs.
  

Though the insured must be found at fault before any liability can be imposed upon him or her for any accident, once that threshold is crossed, the true value of having a personal umbrella policy may be revealed. Upon further reflection, paying those premiums may very well "pay off" just when additional protection is needed.

Are Cell Phones Covered?

Review Your Credit Report for Identity Theft Protection

Identity theft is a serious crime to the American consumer, with over 255,000 individuals affected in 2005 alone (FTC, 2006). As one part of a protection strategy, The Federal Trade Commission (FTC) and other consumer credit organizations suggest a proactive approach to safeguarding your identity: monitoring your credit report. A credit report is an accumulation of information about your bills and loans, your repayment history, your available credit, and your outstanding debts. These reports are typically used by lenders when deciding whether or not to accept a loan or credit application. In terms of identity theft, your credit report can alert you to accounts that have been fraudulently opened in your name, unauthorized charges made to your existing accounts, and other crimes committed by someone using your personal information.

According to the Fair Credit Reporting Act (FCRA), you can request a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year. For your convenience, you can access all three agencies through a single website, www.annualcreditreport.com. The FTC suggests that you order all three reports, even if you choose to stagger your report requests throughout the calendar year, as the information contained within may not be the same from each bureau.

Reviewing Your Reports

Once you have a copy of your credit report, it is important to understand the layout of the report and the types of information you will find in each section. Typically, a credit report is divided into four major sections: identifying information, credit history, public records, and inquiries.

The identifying information on your report will include your name, current (and previous) address, Social Security number, driver’s license number, telephone number, birth date, current and previous employers, and your spouse’s name, if applicable.

The credit history section details your payment history with banks, retail stores, finance companies, mortgage companies, and others who have given you credit. Each account, sometimes called a trade line, will appear with the following information: name of creditor, account number, type of credit (i.e., installment loan or revolving credit), account participation (e.g., joint owner, individual account, or authorized user), date opened, last activity (date of last payment or charge), high credit (the credit limit or original loan amount), terms (number of installments or amount of monthly payments), balance at the time of reporting, past due balance at the time of reporting, status of the account (open, closed, inactive, etc.), and date of last report. It is in this section where accounts opened or affected by identity thieves may become apparent.

The public records section includes public records that reflect your history of meeting financial obligations, such as bankruptcies, collection accounts, judgments, and tax liens. Since records applicable to this section have a serious, negative affect on your credit, ensure that the information belongs to you, not someone who falsely used your personal information.

Finally, the inquiry section lists all the businesses that have received your credit report during the last 24 months. Inquiries are categorized as hard or soft. Hard inquires are those you initiate by filing a credit or loan application. Soft inquiries often come from marketers who want to sell you something. If a listed business sounds unfamiliar, be sure to find out the nature of the business and why they are looking at your credit report.

Mistake or Identity Theft?

If you find a mistake on your credit report, it is important to contact the credit bureau that issued the report, using the form provided with the report or following the instructions given by that particular agency. If the error is more serious, contact the Federal Trade Commission’s Identity Theft Hotline at 1-877-IDTHEFT (877-438-4338). Be sure to keep thorough documentation of all communications with creditors, agencies, and the FTC.

For more information about steps to take if you become a victim of identity theft, visit the FTC’s website at www.ftc.gov.