As we wade through the maze of personal auto policies, it helps Verizon employees understand the fine print and take proactive steps like defensive driving programs to prepare for retirement, 'said Sullivan. A comprehensive coverage is 'like wearing a seatbelt - it is a no-brainer for safety,' says Kevin Landis, of The Retirement Group, a division of Wealth Enhancement Group.
A current personal auto policy and defensive driving courses are critical for Verizon employees approaching Retirement, says Paul Bergeron of The Retirement Group, a division of Wealth Enhancement Group. This proactive approach may help reduce risks and help with sanity on the way to and through retirement.
In this article we will discuss:
1. Older Drivers' Safety Measures: Attention to awareness & personal auto policies for Verizon employees approaching retirement - intersection safety & defensive driving.
2. Understand Auto Policy Provisions: Specific sections and clauses of a personal auto policy that impact coverage like policy modifications and legal requirements.
3. Prevention Strategies & Policy Management: Discussing defensive driving courses for seniors and managing and adapting auto insurance policies to changing personal and legal needs.
Among older adults ages 65 and older, more fatal accidents at intersections are likely, according to a National Highway Traffic Safety Administration study. Actually, they were 22% of all intersection fatalities in 2018. For Verizon employees nearing retirement, driving safely means knowing your surroundings, following traffic laws and avoiding distractions. But a good personal auto policy (PAP) can certainly help in the event of an accident as well.
State residents and especially Verizon employees should know the provisions of their personal auto policy. We've compiled some clarifications on PAPs and how they affect you.
What Is It?
You probably have a vehicle if you work for Verizon. Part F of your personal auto policy (PAP), if you have one, contains provisions that limit and qualify coverage in other sections. The insurer may deny coverage if the conditions in these provisions are not met.
Sections F and G cover additional issues including insolvency / policy changes / fraud / legal action against the insurer / insurer's right to recover payment / policy period / territory / termination / transfer of your interest in the policy and effect of having two or more auto insurance policies /.
Bankruptcy
If you go bankrupt or insolvent, the insurance company has no obligation to release your policy obligations. In some indemnification contracts, however, bankruptcy or insolvency releases the insurer of its payment obligation. Part F says those circumstances would not relieve your PAP insurer of its payment obligation.
Changes to Your Policy
A contract between you and the insurance company is called an insurance policy. Thus the terms of your policy cannot be changed or waived without written endorsement. Verizon employees need to check that everything they want covered by their policy is in the actual contract.
You or your insurer may wish to modify your PAP. If any of your information has changed - like your address or you added your 16-year-old son to your policy - the insurer could raise your premium accordingly. Such alterations may raise your premiums. Any premium increase must be proportionate.
You pay premiums from October 1 through September 30 on a new Porsche 911 on December 25, but the insurance company may increase them from December 25 through September 30 if you have a PAP in effect from October 1 through September 30.
Limited exceptions to the requirement that policy changes be in writing exist. If the insurance company changes something that expands coverage under your policy without charging an additional premium, that change will take effect immediately on the effective date in your state.
Fraud
False statements or fraudulent activities regarding an accident or loss covered by your policy are grounds for coverage loss.
Legal Action Against Insurer
In General
Several prerequisites apply if you plan on suing your insurance company. You cannot sue unless you meet the policy's requirements.
Part E: Duties Following an Accident/Loss outlines certain conditions and responsibilities that must be met. They include paying premiums, advising the insurer of a claim, and cooperating with the insurer. If you have not fulfilled these obligations, you can usually not sue your insurer.
Under Part A--Liability Coverage
Some additional requirements under Part F apply if you sue your insurer for coverage under Part A: Liability Protection. To bring an action under the liability section of your PAP, your insurer must agree in writing that you are obligated to pay (you appear liable) or that the amount has been determined by a court judgment (you are found liable).
This simply means that before your insurer is required to pay a third party under your liability coverage, you must appear liable to another person (to the insurer) or be found liable at trial.
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Other Persons or Organizations
No one else may sue your insurance company to establish liability under your policy. Your insurer and you both have a contract under which a third party may not sue your insurer to determine whether you are liable.
But still people sue the insurance company and the person they say caused the damage. This is because the insurance company pays for the judgment if the other party is found liable. This is also linked to the insurance company having to decide whether it should pay the claim.
Insurer's Right to Recover Payment.
In General
If your insurer pays you money under your policy, they can sue the person or entity liable to you for reimbursement. It is called 'the right of subrogation.' Subrogation means the injured party should not be compensated twice for injuries. This is where an insurer assumes your legal rights when the loss occurs. So they put themselves in your shoes, so to speak, to avoid paying for unnecessary damages.
Bryce has collision coverage on his automobile. But Liz is culpable for the tragedy in which he is involved. His collision coverage covers vehicle damage. Thus the insurance company can sue Liz for the amount it paid Bryce for subrogation (or 'stepping into Bryce's shoes'). Since Bryce has been subrogated by the insurer, he cannot sue Liz directly for the damage to his car.
Your policy also says you must do everything necessary to let the insurance company exercise its rights and not interfere with them in any way.
Against A Person With 'Your Covered Auto'
For the purposes of Part D: The right of subrogation does not apply to a person who has used 'your covered auto' while reasonably believing he or she was authorized to do so. By definition, your covered auto means any vehicle listed on your insurance policy's Declarations Page.
Example(s): Bryce borrows Liz's vehicle with her permission and crashes. The auto Liz drives has collision coverage. The insurer pays Liz compensation for the damage Bryce did. Liz's insurance company cannot subrogate against Bryce for a payment it made to Liz because Bryce reasonably believed he had permission to use Liz's vehicle. You Get Damages Back from Another Person.
Even if you have already recovered damages from another party, your right of subrogation remains. IF the insurance company pays you under your PAP and you recover damages from another party, you must meet the following requirements:
The recovery proceeds should be held in trust for the insurance company. Repay the insurance company for its payment in full.
The reasoning is the same as before: insurance makes you 'whole,' not allows you to profit from your accident. Duplicate payments could be considered insurance fraud and future coverage denied.
Policy Period and Territory
Your Personal Auto Policy is time and location restricted. Your policy covers incidents and losses only within the policy territory and during the policy period specified on the Declarations Page.
The policy territory generally comprises the following:
The United States, its territories and possessions. Puerto Rico Canada
Your PAP also applies when 'your covered auto' is transported between locations within the policy territory.
It happens often that Mexico is not in your policy territory - and Verizon employees should know. Once you enter Mexico, your PAP no longer covers you so you should buy separate insurance beforehand.
Mexican insurers often insure short trips into Mexico at the border.
Termination
In General
Your PAP contains termination and non-renewal provisions during the policy period and at the end of the policy term. These provisions typically are regulated under state law - check with your local government for more details.
Cancellation
During the policy period either you or your insurer can terminate coverage.
The insured named on the Declarations Page may cancel the PAP in either of the two methods below.
Return the insurance policy to the insurer. Documented notice to the insurance company of the cancellation date in advance.
The insurance company may terminate the policy, under state law, by mailing a notice of cancellation to the named insured listed on the Declarations Page, along with:
Cancellation for nonpayment of premium. This policy is in effect unless otherwise noted within the first 60 days - it is not a renewal nor a continuation. All other cases require 20 days' notice. After the policy is in effect for 60 days or more, special cancellation provisions apply. The insurer generally may terminate for one of the following three reasons:
If obtained by material misrepresentation, the policy is null and barred.
If you, a driver who lives with you or a driver who routinely uses 'your covered auto' has had their driver's license suspended during the policy period or within a year of the effective date of the policy if the policy is less than one year (e.g., a six-month policy), you will pay the deductible.
Non-renewal
After a policy term ends, the insurance company may choose not to renew your auto policy. For any legal reason authorized by state law they may do so. A higher risk makes most insurance companies not renew. When you have an accident, get a traffic ticket or add a young/new driver to your policy, your risk factor increases.
Typical policy language requires that the insurer provide 20 days' notice before the expiration of the policy period if it does not intend to renew. State-by-state regulations regarding policy cancellation differ. See your insurance agent or financial advisor for additional details. Questions about policy coverage for Verizon employees? Contact The Retirement Group.
Automatic Termination
You lose coverage when you decline an offer from the insurance company to renew it. Nonpayment of the renewal or continuation premium is equivalent to declining the renewal offer. A new policy for 'your covered auto' will expire on the effective date of your new coverage. This is to prevent duplication of coverage for a loss occurring between policy periods.
Example(s):
The former Bryce policy expires December 31. Bryce buys a new insurance policy which takes effect December 15. Its previous policy expires December 15 and covers only up to December 31.
Other Termination Provisions
They set out administrative details like how the insurer must deliver the policy to you, when you are entitled to a refund, and when your cancellation takes effect. State regulations in many cases supersede those of your policy. Find out from your insurer what your state policies mean for you.
Your Interest in the Policy is Transferred.
In General
No person may assign or transfer personal insurance policies without the insurer's written consent. You must have certain character, credit and driving requirements when you apply for insurance.
The policy coverage and cost are determined by your information. You could transfer the policy at your discretion and the insurer would have no control over who and under what conditions you would insure. That would obviously make underwriting a nightmare.
Death of the Policyholder
Your personal auto policy would continue to cover your surviving spouse and the attorney for your estate should you die. Whether or not your spouse was living with you when you died, coverage will continue as if your spouse were the named insured. The only person covered is the legal representative of your estate who is legally obligated to maintain or use 'your covered auto.' Your spouse or attorney is covered until the policy period ends.
Two or More Policies
If you have several policies from the insurer that covers your PAP, the insurer is generally limited to the maximum liability allowed by each policy. That keeps you from stacking the individual limits.
Example(s):
Bryce has a USD 100,000 PAP on his auto. ANOTHER PAP from the same insurer covers his car for USD 200,000 in liability. Combined liability for the automobile and vehicle is USD 200,000 if both are involved in an accident. Bryce cannot 'stack' the two policies to get USD 300,000 in liability coverage.
Navigating your personal auto policy is like driving a car on a road with many speed limits, stop signs and detours. Understanding rules of the road will prevent accidents or unexpected surprises. Like you would prepare for a long drive by checking your vehicle condition and route, you should also review your PAP to make sure it covers everything you need before you go out on the road. And like you would drive carefully through intersections, older adults should be wary of the provisions and limits of their PAP.
Added Fact:
One study published in the Journal of Aging & Health in 2019 concluded that older adults participating in defensive driving programs were significantly less likely to be involved in accidents at intersections. They train older adults to drive safely - including hazards perception, decision making and attention control. With a specialized defensive driving program for seniors, Verizon workers nearing retirement can improve their driving skills and reduce the risk of intersection-related accidents, helping them make the transition into retirement safer and more confident (source:). Journal of Aging and Health, 2019).
Added Analogy:
Navigating through the provisions of a Personal Auto Policy (PAP) is like driving on a maintained highway in your retirement. Like planning your route, obeying traffic laws, and keeping your auto in good condition, knowing your PAP is important for a smooth ride into retirement. Every provision points you to safe and protected travels. From bankruptcy preventing you from releasing your insurer's payment obligation to the insurer's right to recover payment like a toll booth, these provisions protect your interests. Just as you adjust your speed to match the road conditions, Verizon workers approaching retirement should consider policy changes, fraud prevention and defensive driving programs to avoid accidents at intersections. By following these provisions, you can travel the road to retirement confidently knowing your PAP will be your constant companion and provide coverage and peace of mind as you travel.
Sources:
1. National Highway Traffic Safety Administration. 'Older Drivers.' NHTSA, www.nhtsa.gov/road-safety/older-drivers . Accessed [date].
2. Federal Highway Administration. 'Intersection Crashes Among Older Drivers.' FHWA, www.fhwa.dot.gov/intersection_crashes_among_older_drivers . Accessed [date].
3. National Highway Traffic Safety Administration. 'Traffic Safety Facts.' NHTSA, www.nhtsa.gov/data/research . Accessed [date].
4. Federal Highway Administration. 'Older Drivers at a Crossroads.' FHWA, www.fhwa.dot.gov/older_drivers_at_crossroads . Accessed [date].
5. National Highway Traffic Safety Administration. 'Advanced Driver Training Courses.' NHTSA, www.nhtsa.gov/advanced_driver_training_courses . Accessed [date].
How does the Verizon Pension Plan facilitate retirement income for long-term employees, and what specific benefits can employees expect when enrolling in the retirement program provided by Verizon? What unique features does the Verizon Pension Plan offer compared to other retirement plans an employee might have encountered, and how can employees maximize the benefits of these features throughout their career at Verizon?
Verizon Pension Plan Benefits: Verizon's Pension Plan offers substantial benefits aimed at facilitating a secure retirement for long-term employees. Upon enrolling in the retirement program, employees can expect defined benefits that are based on their salary and years of service, ensuring a predictable and stable income after retirement. Unique to Verizon, compared to some other plans, may include options for early retirement under certain conditions and a choice between annuity payments or a lump-sum distribution upon retirement. Employees can maximize these features by planning for long-term service and considering their retirement income needs early in their careers.
In what ways can employees at Verizon strategize their rollover decisions when transitioning from the Verizon Pension Plan to other retirement savings plans upon leaving the company? What factors should be considered by Verizon employees to ensure they are making informed choices regarding rolling over funds to a traditional IRA or another qualified employer plan?
Rollover Strategies: When transitioning from the Verizon Pension Plan to other retirement savings options upon leaving the company, employees should strategize their rollover decisions carefully. Factors to consider include the tax implications, the investment options available in the rollover destination, and the timing of the transfer to avoid penalties. Verizon employees should evaluate the benefits of rolling over to a traditional IRA or another employer's plan, considering their future financial needs and retirement goals.
What are the implications of the recent IRS limits for 2024 concerning contributions to retirement plans for Verizon employees, and how does Verizon align its offerings with these federal regulations? Additionally, how can Verizon employees best take advantage of these limits to enhance their retirement savings while adhering to tax regulations?
IRS Contribution Limits: The implications of IRS limits for 2024 are critical for Verizon employees as these limits dictate how much can be contributed tax-deferred into retirement plans. Verizon aligns its offerings with these federal regulations by adjusting contribution limits in their plans accordingly. Employees are encouraged to maximize their contributions to take full advantage of tax-deferred growth, especially when IRS limits increase, thereby enhancing their retirement savings while adhering to tax regulations.
How does the special tax treatment for lump sum distributions from the Verizon Pension Plan affect employees who receive their benefits early or have specific circumstances, such as being born before 1936? What options do these employees have to manage their tax burden effectively, and how can they best navigate these complicated rules while planning for their retirement?
Tax Treatment of Lump Sum Distributions: The special tax treatment for lump sum distributions from the Verizon Pension Plan can significantly affect employees who opt to receive their benefits early or under specific circumstances like being born before 1936. These employees have options to manage their tax burden effectively by opting for ten-year averaging or capital gain treatment on eligible distributions, allowing for a potentially lower tax rate on their pension benefits.
For surviving spouses and alternate payees of Verizon employees, what are the specific benefits available under the Verizon Pension Plan? How do these benefits compare to those available to employees, and what steps must surviving spouses or alternate payees take to ensure they receive their entitled benefits without delays or complications?
Benefits for Surviving Spouses and Alternate Payees: For surviving spouses and alternate payees, the Verizon Pension Plan offers benefits similar to those available to employees, such as annuity payments or lump-sum options. These beneficiaries must take certain steps to ensure they receive their benefits without delays, such as providing necessary documentation and adhering to plan rules. The plan details and processes for claiming benefits should be clearly understood to avoid complications.
How can Verizon employees utilize the resources available through the Verizon Benefits Center to better understand and manage their retirement benefits? What specific tools and services does the Benefits Center provide, and how can these resources assist employees in making informed decisions regarding their pension plan options?
Utilizing Resources at the Verizon Benefits Center: Verizon employees can utilize various tools and services provided by the Verizon Benefits Center to manage and understand their retirement benefits. The Benefits Center offers personalized consultations, detailed plan documentation, and tools for estimating pension benefits and planning retirement income, assisting employees in making informed decisions about their pension plan options.
What challenges might Verizon employees face regarding eligibility and tax withholding when receiving their pension payments, and how can they mitigate these issues? It's crucial for employees to understand the mechanics of eligibility regarding rollovers and payment processing; what key pieces of information should they be aware of to avoid unexpected taxes?
Challenges in Eligibility and Tax Withholding: Verizon employees might face challenges regarding eligibility and tax withholding when receiving pension payments. Understanding the plan's criteria for eligibility, the implications of rollovers, and the impact of mandatory withholding on distributions is crucial. Employees can mitigate these issues by consulting with the Verizon Benefits Center or a tax advisor to ensure compliance and avoid unexpected taxes.
What is the process for Verizon employees wishing to initiate a direct rollover from the Verizon Pension Plan, and what documentation will they need to prepare? Can employees receive assistance from the Verizon Benefits Center during this process, and how does using a direct rollover benefit them compared to other forms of payment?
Direct Rollover Process: The process for initiating a direct rollover involves deciding the destination of the rollover (traditional IRA or another employer plan), completing necessary documentation, and potentially seeking assistance from the Verizon Benefits Center. A direct rollover helps in avoiding immediate taxes and maintaining the tax-deferred status of retirement savings.
In terms of retirement preparedness, how does the pension plan at Verizon accommodate employees’ needs for financial security in their senior years? What additional education or resources does Verizon provide to assure that employees fully understand their retirement options and the importance of planning ahead?
Retirement Preparedness: Verizon's pension plan is designed to accommodate the financial security needs of employees in their senior years. In addition to the pension benefits, Verizon provides educational resources and planning tools to ensure employees understand their retirement options and the importance of early and consistent retirement planning.
How can employees reach out to the Verizon Benefits Center for further information about the pension plan and other retirement benefits? What specific contact methods are available to employees, and how can these interactions enhance their understanding and management of retirement benefits provided by Verizon?
Contacting the Verizon Benefits Center: Verizon employees seeking more information about their pension plan and other retirement benefits can reach out to the Verizon Benefits Center through various contact methods such as phone, email, or online portals. These interactions are crucial for enhancing understanding and effective management of retirement benefits, ensuring employees make the most of the benefits available to them.
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