GRAY

General Questions

Q: I received a bill in the mail and my payment is higher than my agent told me it would be. How could this happen?
A: Call your agent to handle this situation. Likely it is due to a simple issue such as a credit being removed from your policy for not sending in proof of insurance from your prior insurance company. Sometimes it might be a technical error. Whatever the situation, it can be corrected.

Q: What is my grace period?
A: Each company is different so if you are unsure it is always best to contact your insurance agent or call your company direct. If your payment is late you will always receive a warning notice with the last day to make your payment before a lapse will occur.

Q: I received a notice of cancellation, what should I do?
A: Contact your insurance agent immediately to find out your options regarding a reinstatement of your policy.

Auto Insurance Questions

Q: Why are insurance rates rising?
A: These rates are rising for several reasons, according to the North Carolina Rate Bureau.
• Repair costs: Cars and car repairs have gotten more expensive. Since 1997, costs associated with auto bodywork have risen 12.6 percent.
• Medical costs: Medical costs are also continuing to rise. Since 1997, medical costs have increased 17.7 percent.
• Sharply higher jury awards in vehicular liability cases are driving up prices.

Q: How are North Carolina's auto rates and premiums determined?
A: North Carolina has what is known as a prior approval rate program, meaning that the Commissioner of Insurance must approve all auto insurance rates before they go into effect. The Commissioner determines the maximum rate that insurance companies can charge, although companies may offer discounts off the maximum rate for things like a good driving record or specific safety features on a vehicle.

Q: Can I cancel my policy before it renews?
A: Yes, but all insurance companies charge a short rate penalty which is percentage of the unpaid premium balance.

Q: What if my policy cancels?
A: Contact your agent right away and depending on the state that you live and providing that you have not had a loss you may be able to do a Statement of No Loss. This is where the company will reinstate the policy back to the original date that it was cancelled. There is normally a fee involved but this will ensure that you will not have to pay a penalty to the state.

Q: What should I do if I have been involved in an accident?
A: Always call the police to the scene of the accident. If you leave the accident scene without a police report then it will be your word against the other driver if a claim is placed later on. Once the report has been made, contact the company of the driver who is at fault in the accident. You do not need to contact your own company unless you are at fault.

Q: Do I need comprehensive and collision on my vehicle?
A: If you have a loan or lease on your vehicle you do need to carry comprehensive and collision coverage. If your vehicle is paid for then you are not required to carry comprehensive and collision coverage but if your vehicle has a value of $1,000 or more, the best advice would be to carry full coverage to ensure you would receive payment for your vehicle in the event that you should have an at fault accident with a total loss.

Q: What is comprehensive coverage?
A: Comprehensive covers anything other than an accident such as your windshield, vandalism, theft, fire, etc…

Q: What is collision coverage?
A: Collision covers damage to your vehicle if you are involved in an accident where you are at fault or partially at fault and responsible for your own vehicle.

Q: My windshield has a crack in it. What should I do?
A: Call your insurance agent right away. If you carry comprehensive coverage and the crack can be repaired without the windshield having to be replaced, then there is no cost to you. If the windshield has to be replaced then you are responsible for the amount of your deductible.

Q: What is a PJC?
A: A PJC is a prayer for judgement continued which is given by the court and which keeps insurance companies from charging points for that particular violation. Generally a four hour class has to be completed in order to receive a PJC. You can only obtain one PJC every three years per household. If your household does obtain more than one in a three year period then insurance companies are allowed to charge for both.

Q: If someone else drives my car will they be covered under my insurance if they are involved in an accident?
A: If the driver is licensed then yes they will be covered but keep in mind that if they are at fault you will still be responsible for your collision deductible if you carry full coverage on your vehicle.

Q: I got stopped and the police officer told me that there was a block on my tag for no insurance but I know that I paid my bill. How can this happen?
A: This is most likely because of a previous lapse of insurance that was never taken care of. Anytime you have a lapse of insurance, you are required to pay a penalty to the state and if it is not taken care of then a block will remain on your tag. Contact the DMV and they will advise you of any options that you may have. If you never received notice from the state due to circumstances such as a change of address then you can request a hearing and most likely it will be dismissed with a small penalty.

Q: I received a notice to turn in my tag for 30 days because of a lapse of insurance but I never received a notice before this. What should I do?
A: Contact the DMV to explain that you never received a prior notice and request a hearing.

Homeowners Insurance Questions

Q: What is homeowners insurance?
A: Homeowners insurance is an insurance policy that protects your home financially in the event of a catastrophic loss that may occur on your property or in your home.
* All in all, standard home insurance covers the following:
1. Coverage A- Dwelling
2. Coverage B- Other Structures on Your Property
3. Coverage C- Personal Property/Contents
4. Coverage D- Loss of Use
5. Coverage E- Personal Liability Protection
6. Coverage F- Medical Payments

Q: How much coverage do I need on my home?
A: Your home needs to be insured at 100% of the reconstruction cost of the structure without the value of the land included. This amount can often be found on an appraisal or your insurance agent can determine the amount through a program specifically designed to determine this amount based upon detailed information about the home.

Q: Do I need separate coverage for jewelry?
A: Coverage for stolen or destroyed jewelry and other precious items such as furs, chinaware, watches, etc. is typically included in a standard homeowners policy but up only up to a certain amount generally between $1,000 - $1,500. Contact your agent to make sure that you have enough coverage for your valuables.

Q: Is flood insurance covered under my homeowner insurance policy?
A: No, flood insurance must be purchased separately through the National Flood Insurance Program. Contact your insurance agent to purchase a flood policy for your home.

Q: Should I make a home inventory list?
A: A home inventory may not seem like a high priority on your list of things to keep up with as a homeowner; however, in the event that these items were destroyed in a fire or other peril, this list will be your greatest asset.
A home inventory is simply a list of all of your possessions. This inventory will not only help you determine how much insurance you need, it will also help your claim get settled faster in the event of a loss.
When taking an inventory of your home, be sure to include everything except vehicles, animals and items that are insured under other policies. It is important to keep this document in a safe place outside of your home- such as in a safe deposit box or at a relative’s house.
* Here is a list of tips for creating a comprehensive home inventory:
 List every item of value in your home
 Include serial numbers of items anywhere you can
 Continuously update your home inventory as you acquire new items
 If you have the receipt- include it!
 Take Photos- take close-up and wide-angle shots, use a color camera or video camera if possible and have a family member in all pictures to help prove ownership.
* Call your agent for a homeowner inventory pamphlet which is specifically designed for you to categorize your belongings.

Life Insurance Questions

Q: What kind of life insurance should I purchase?
A: There are several types of life insurance available depending on what you are looking for.
*Term life insurance
*Term life insurance is insurance for a specific period of time and a specific premium.

*Whole life insurance
Whole life insurance provides insurance for a stable premium and a cash value table that is guaranteed in the policy by the company. You can take out policy loans on a whole life insurance policy.
*Universal life insurance
Universal life insurance is a policy that provides permanent life insurance with flexible premium payments and a higher rate of return, which includes a cash account that you can draw from.

Q: How much coverage do I need?
A: Click on the link below to find out or you can call your insurance agent to discuss your life insurance needs. 

Health Insurance Questions

Q: I’m on a budget and health insurance is so expensive but I need it. What should I do?
A: Contact an agent. There are many low cost affordable basic plans available without co pay options. These plans will cover you for catastrophic losses that would otherwise leave you financially indebted for years to come.

Q: I have a pre existing condition and cannot obtain coverage anywhere or it’s simply too expensive. What can I do?
A: Call an agent for more information. There are options out there for different types of situations.

Q: I’m pregnant and I don’t have any coverage. What should I do?
A: There are maternity discounts plans as well as regular insurance plans that you can purchase if you are already pregnant as long as you qualify. Call an agent to find out more information.

Q: I received a letter from my insurance company that my claim was denied. What should I do?
A: Call the insurance company directly. Sometimes it is a processing error for an out of network doctor. In this case, the insurance can reprocess the claim if the doctor is in the network and the claim would be paid in this case. You can also call your insurance agent for advice to check on the status of in network doctors.

Q: My claim was denied for reasons other than my doctor not being in network. What should I do?
A: Claims can always be appealed for a valid reason. Each circumstance is different and there is no guarantee that the claim will be paid once the appeal is made. Contact your insurance company directly to find out about an appeal or you can contact your agent for advice.