Rio Grande Insurance

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GENERAL INSURANCE QUESTIONS
Why Is Rio Grande Insurance the best place to buy insurance from?
How Come my rates are so high?
Why does bill by mail have fees attached to it?
How do I get the most discounts on my policies?
Why do you need my Social Security Number?
Can I stop just one EFT payment?
What's the name of my insurance company - is it Rio Grande?
When is my payment due?
How much is my payment?
If I have an accident/claim will my rates increase in the middle of the term?
Why do you ask so many questions on your online quote form when other companies just ask for name and zip?
What does Inland Marine Insurance mean, and what's with the funny name?
Where can I get more insurance information?

FILM, PRODUCERS, PRODUCTIONS AND MOTION PICTURE INSURANCE QUESTIONS
What is a Waiver of Subrogation?
Can I get a Film Completion Bond?
What are the different types of film insurance policies?

AUTO INSURANCE QUESTIONS
What is Uninsured Motorist Coverage?
What is Full Coverage?
What do I do if I have an accident?
How can I improve my insurance rate if I am already a safe driver?
Does my auto insurance cover me outside the the state I reside in?
Why are rates in the state of NM so expensive?
What is New Mexico doing about Uninsured drivers?
When I turn 25 will I receive a discount?
Does it cost more for a car used to commute?

HOMEOWNERS INSURANCE QUESTIONS
What is the difference between Replacement Cost and Actual Cash Value?
What happens if I don't "schedule" my more expensive belongings?
What is a blanket limit?
How does an umbrella cover me?

BUSINESS INSURANCE/COMMERCIAL INSURANCE QUESTIONS
What does workers compensation cover, and do I have to declare payments made to 1099 subcontractors?

LIFE AND HEALTH INSURANCE QUESTIONS
Are we Rio Grande Life Insurance Company?
Does Rio Grande sell Dental insurance?
Is maternity covered on an individual health insurance plan?
How long does it take to be insured for health insurance?
Do I have to take a physical exam to get life insurance?
Do I need to go to a doctor for the blood work?
Can I purchase life insurance on my girlfriend?

GENERAL INSURANCE QUESTIONS

Why Is Rio Grande Insurance the best place to buy insurance from?
Rio Grande Insurance agencies are independant, not "captive." That means we work with a lot of the top rated insurance companies in order to shop for the best value for you. At different times, different companies will have discounts, or special coverages that are best suited to you. By working with Rio Grande, we are not trying to sell you one particular product - we are actually reviewing your needs and making matches that fit for you, as well as finding you the best value rates and best companies for the coverages you need. Click here for insurance quotes by email

The companies that we work with are:

• Licensed to sell insurance in the state
• Most are "admitted" carriers (the state guarantees the coverage - we will always let you know if for some reason we need to consider a non-admitted carrier for your insurance, which happens in special circumstances)
• Financially solid (check ratings here)
• Competitively priced

How come my rates are so high?
Rates vary from company to company and are also based on a wide range of factors including but not limited to:

• Accidents and sometimes Claims;
• Garaging zip codes changes;
• Company rate increases;
• Driver changes;
• Changes in automobiles, marital status, and
  birthdays.

That is why it is important to talk to an insurance professional to see if you can bring more value to your current insurance plan through another carrier. Click here for online insurance quotes

Why does bill by mail have fees attached to it?
Most insurance companies attach a handling or processing fee anytime they have to physically touch a payment (man hours)

How do I get the most discounts on my policies?
You can receive the most discounts by combining all applicable lines of business with one insurance carrier (home, auto, life, commercial) this will insure a multi-policy discount along with any other discounts you may be eligible for (safe driver, married, multi vehicle....)

Why do you need my Social Security Number?
To run a financial responsibility on the insured (the person in whos name the policy is written) as well as to insure the most accurate quote info. We can issue insurance without a social security number, but your rates will typically be much higher.

Can I stop just one EFT payment?
Yes, call your insurance company or your agent to make this request, usually requires a signature.

What's the name of my insurance company - is it Rio Grande?
Rio Grande Insurance Services is your AGENT, not your company. Your insurance company name can be found on your Insurance ID card, your application, your Declarations page and your policy as well as your billing statement

When is my payment due?
In most cases on or before the inception/renewal date of your policy. However some carriers do allow you to change this date, call your insurance company directly or your agent to find out the exact date if you are still unsure.

How much is my payment?
This information should be on your application unless changes have been done to your policy that would affect the premium (Such as adding or removing vehicles or drivers)

If I have an accident or claim will my rates increase in the middle of the term?
If they do increase (per your insurance company) it will not be until the next renewal.

Why do you ask so many questions on your online quote form when other companies just ask for name and zip?
Other companies are turning you into a "lead," a prospect... and they're going to try to get you on the phone to sell you a lot of things. Rio Grande Insurance doesn't do that. We're here to get you what you want, and we spend a lot of our time working with many companies so that we can find you better coverage at a lower price. The more information you can give us up front, the faster and more accurately we can find your best insurance coverage value. If you would prefer to speak to an agent about what your total insurance needs are, we can help you with that as well! Simply call us toll-free at 1-888-447-8216 or find an office near you using the navigation links.

What does Inland Marine Insurance mean, and what's with the funny name?
Inland marine covers loss to either your property or the property of others when it is in your care, custody and control, when the property in question is at a non-permanent location, in transport, temporary storage, or mobile. Property in question does not have to be business property (items owned), but may also be personal (guns, golf clubs, skis, etc.) This type of coverage can also be called a floater.
As for how the terms "inland marine" and "floater" came to be, indulge us in a little story:
Over 300 years ago, a collection of European merchants would meet at a coffee house to discuss their business transactions. Many were in the transatlantic cargo and shipping business, moving sugar cane & rum as well as other commodities around. Pirates were a fact of life, as was bad weather. The merchants, to collectively ease the individual pains when one ship or its cargo was lost, would each pay regular, smaller amounts into a fund, in order to "insure" against loss.
As these merchants expanded this concept, they took the original marine insurance idea and applied it to goods on barges in canals (floater) en-route to their final destination, and to ground-based transportation that worked for the marine merchant companies (inland marine).
The town these merchants were in? London
The name of the coffee house? Lloyd's

Other events of significant note have created the modern insurance industry. Mrs. O'Leary's cow (the 1871 Chicago fire) was responsible for an entire new insurance industry, starting with something called dwelling fire coverage, or the fire policy. The 1906 San Francisco earthquake (which actually affected an area from LA to Oregon) called for careful definitions of coverages and causes of loss.

Where can I get more insurance information?
The Insurance Information Institute has a great collection of information, including this glossary of insurance terms

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AUTO INSURANCE QUESTIONS

What is Uninsured motorist coverage or Underinsured motorist coverage?
Uninsured motorist bodily injury coverage is insurance that you, "the insured," purchase to protect yourself and passengers in your car from bodily injury caused by a person who is not insured (or who is underinsured - meaning they do not have enough bodily injury liability to cover the expenses sustained). Uninsured motorist property damage coverage is insurance that you purchase to protect the value of your car from loss or damage caused by a person who is not insured (or who is underinsured - with not enough property damage liability to pay for your vehicle). Uninsured/Underinstured motorist property damage coverage will only cover up to the current value of your car (NADA), but will not pay any more.

What is "full coverage" with regards to automobile insurance?
Full coverage is a term used to imply that the insured has all coverage's offered by their insurance company on their policy. This includes but is not limited to:

• Liability coverage (both bodily injury and property damage)
• Uninsured/Underinsured Motorist coverage (both bodily injury and property damage)
• Medical coverage (immediate payment for injuries to the driver and passengers in your car)
• Comprehensive coverage, with deductible (loss due to theft or damage other than collision)
• Collision coverage, with deductible (damage to your car from collision or flip-over)
• Towing coverage
• Rental Reimbursement coverage
• Along with specific company-only coverage's such as:
  • Accidental Death coverage
  • Gap protection coverage
  • New Vehicle replacement coverage
  • Accident forgiveness
  • Deductible reduction
  • Guaranteed renewal
  • Audio System coverage
  • Special/custom equipment coverage
  • Stated value coverage

Check with your agent to make sure you do have "Full Coverage," and whenever possible, specify exactly which of the above you are interested in.

What do I do if I have an accident?
You can best be served on what to do if you have an accident by posing this question to your insurance agent at the time you purchase insurance. But a few steadfast rules do apply:

• Make sure everyone is safe, doctor, hospital or medical treatment if necessary should be attended to first and foremost.
• Call the local authorities to report the claim.
• Take a deep breath and Relax if possible.
• Save your explanation as to how the accident occurred for the police officers at the scene of the accident.
• If no local authorities are available exchange name, phone numbers and policy numbers with the other party. Save your explanation as to how the accident occurred for the insurance companies.
• Call your insurance company, most furnish you with an 800 number and tell them exactly what happened and they will guide you from there, through the rest of the claim process.
• Rest assured your claim will be handled and you will have the opportunity to ask and an all questions you feel relevant to your claim.

How can I improve my insurance rate if I am already a safe driver?
Insurance companies will give a better rate:

• If you carry higher limits of liability;
• If you are changing insurance companies;
• Shop your insurance change in advance of the renewal date instead of waiting till the last minute
• Married drivers have lower rates
• Multiple vehicles combined onto one policy (with one driver per vehicle) will have lower rates

The reasoning is simple: The items above indicate a higher level of responsibility. If you are conscientious about your insurance....you are more likely to be a responsible driver.

Does my auto insurance cover me outside the the state I reside in?
Most insurance companies extend coverage throughout the United States and Canada. If you're not sure, call the customer service number shown on your policy and ask.
Note that very few companies extend coverage into Mexico (you need to purchase trip-specific Mexico Auto Insurance - contact us for details)

Why are rates in the state of NM so expensive?
Rates are based on the number of uninsured motorists in the state and the number of accidents/losses from all drivers - these factors affect the overall premium base so that insurance companies have enough premiums to cover their losses.

What is New Mexico doing about Uninsured drivers?
New Mexico is currently sending out letters stating that if a vehicle is uninsured then the registration will be suspended.

When I turn 25 will I receive a discount?
After you turn 25 most insurance carriers will give a small 1-3% discount on your next renewal.

Does it cost more for a car used to commute?
No! In fact, it is exactly the opposite. Just like the rate reduction information given above, driving a vehicle on a regular basis to a regular location tends to indicate a higher level of responsibility - both in your driving and in the care of your vehicle. Auto insurance quotes for the same vehicle driven for commuting will very often have rates lower than the same vehicle indicated as being driven for pleasure. The same is true when it comes to employement status. It is often less expensive for an older driver with a commuting job as compared to a retiree.

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HOMEOWNERS INSURANCE QUESTIONS

What is the difference between Replacement Cost and Actual Cash Value (ACV)?
Actual cash value only pays to replace your home or property after subtracting a deduction for depreciation. For a higher premium, you can purchase replacement cost coverage, which pays the actual cost of replacing your home or property at the price of what it would cost to purchase that item new, today. Replacement cost coverage premiums are about 10 percent more than ACV. Replacement cost contents is an "endorsement" you should definitely consider. (Endorsements are "forms" or changes/additions of special coverage to your policy)

What happens if I don't "schedule" my more expensive belongings?
If you don't "schedule personal property," there may be limits on how much coverage you get for items such as jewelry, watches, silverware, furs, firearms, computers, art and other items. Without scheduled property, there are general limits of $1,000 or $2,000. The exact limits of coverage will be shown in Section I of your policy. With a scheduled personal property endorsement. A scheduled personal property floater usually provides coverage for loss of any type, including accidental loss or "mysterious dissappearance."

What is a blanket limit?
A blanket limit, provided by some companies, on your homeowners insurance, combines the totals available for the individual, normally separate property coverages, into one larger number. Claims can be paid out of the blanket limit, and do not have to be allocated exactly how normal, separate coverages would be. The separate property coverages usually include:

• The structure of your home (covered at replacement cost, but does not include cost of land)
• Outlying, non-attached structures on your property
• Your personal property (possessions)
• Cost of living expenses if your home suffers a catastrophic loss

In addition to property related coverages, you will also have insurance to cover your liability to others (minimum $100,000) and medical payments to others. These are not contained under a blanket limit.

How does an umbrella work?
If you have assets (property + savings/investments) that are worth more than the liability limits of your homeowner policy, you should consider purchasing an umbrella policy, also known as "excess liability." Umbrella coverage is called excess because it does not start to pay out until after you have used up the liability insurance in your homeowners or auto policy (depending on the incident). Umbrella liability covers more issues than the other liability policies, including such things a libel and slander. Many companies will require that you have a minimum of $300,000 liability coverage on your home and car before you can purchase an umbrella policy.

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BUSINESS & COMMERCIAL INSURANCE QUESTIONS

What does workers compensation cover, and do I have to declare payments made to 1099 subcontractors?
As you probably know, the state of New Mexico requires any employer with more than 2 employees to have workers compensation (work comp) insurance. If you have less than 3 employees you may still decide to purchase work comp coverage. Other states may be different.
Workers compensation covers one of two things, either:
- Medical expenses and lost wages for on-the-job injury or illness or disease contracted as a result of employment; or
- If an employee elects not to get coverage under the first part, then workers compensation covers "employers liability" because your employees have the right to sue for on-the-job injury or illness or disease contracted as a result of employment

Important to note with regards to the first part (medical expenses) of workers compensation is that personal health insurance companies have the right to decline coverage for on the job injuries/illness/disease. In the state of New Mexico, sole proprietors and 10+ percent owners of LLCs and Corporations have the right to "affirmative election" of their right to refuse to be covered by their own workers compensation coverage. In some special classifications of work, the state is no longer allowing owners to exclude themselves, or requires a letter from the state specifically allowing an owner to exclude themself.

The state of New Mexico mandated minimum limit is $100,000 per employees per year (policy period). If you're thinking about workers comp coverage, then you should also know that Workers compensation is annually auditable from your insurance company. That means they will send you documents requesting bookkeeper verification of your payroll and contractor expenses in order to correct your coverage "basis," and to retroactively bill or credit you accordingly. You are required to respond with certified, accurate figures in a timely manner to these audits as a provision of your insurance coverage.

Auditing of W-2 employee payroll is pretty clear - payroll fully counts, with the sole exception of 10+% owners having the right to opt out from work comp coverage.

For contractors, there are options:
- Companies that you hire as contractors (who themselves have more than 2 employees) are responsible for their own work comp - so not your problem, though it is wise of you to retain a certificate of coverage for their work comp in your files.
- Sole proprietors (individual people) or single-entity LLCs whom you hire (usually as 1099 individuals) must have one of the following:

- They may provide you with an election to decline coverage form (PDF for Sole Proprietors;   PDF for LLC 10+ percent owners ), which must be notarized and you keep on file. The forms linked in this section are samples in 2010 from the state of New Mexico (look at the bottom of the page on that link for the Special Election forms) - contact the workers compensation administration (look on their website!) in your state for up to date forms.
- They may have their own work comp coverage already. If so, then they need to give you a certificate proving it
- If neither of the above two items apply, then YOUR annual work comp audit will require you to report those contractors AND to pay full value workers compensation on them. In some cases, like if they want to be covered for on the job injury by you, then this may be exactly what and how you want to cover them.

So, if a person who is a contractor working for you, both:
a) Does not have work comp coverage; AND
b) Is an individual and does not want work comp coverage

Then you need to keep the affirmative election for a Sole Proprietor to decline coverage, notarized, on file for them.
The work comp insurance company has the right to verify that you have these forms on file.

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LIFE AND HEALTH INSURANCE QUESTIONS

Is Rio Grande Insurance Services of Santa Fe, Inc. the same company as Rio Grande Life Insurance Company?  
No, we are not related in any way to Rio Grande Life Insurance Company. However, we get asked this question a lot, and here is what we know:
- Life Insurance companies do not ever go out of business (that would be very bad for the trustworthiness of the industry!), however they DO get purchased by other companies
- The policies issued by Rio Grande Life Insurance company were all purchased by Kentucky Central Ins Co
- Kentucky Central's policies were later purchased by two companies:
    - Liberty Mutual Ins Co, www.libertymutual.com, 800-551-8354, purchased most life policies
    - Lincoln National Ins Co, www.lincolnlife.com, 800-487-1485 ext. 8502, purchased some life policies

Do we sell individual dental insurance?  
No, dental insurance is sold only to a group. There are dental discount plans available.

Is maternity covered on an individual plan?
No, maternity is covered only on group plans. You may however purchase a maternity rider from your health carrier, but only if you are not already pregnant.

How long does it take to be insured for health insurance?
About 5-10 days, an application must be submitted to an underwriter for approval.

Do I have to take a physical exam to get life insurance?
As a rule, most companies when applying for a death benefit over 100K will require a blood and urine sample. The higher the death benefit becomes, the more thorough the exam becomes. Under 100K a simple application is usually all that is required, unless the applicant is 65 years of age or older, or indicates a pre-existing health condition.

Do I need to go to a doctor for the blood work?
No, the insurance company will send a porta-medic to your home at their expense if you wish.

Can I purchase life insurance on my girlfriend?
No, you must be married. You can only purchase life insurance on someone you have an insurable interest in.

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