Keyes Insurance Services Inc. Client Newsletter

April 2012
In This Issue
Auto Insurance Tips
Growth in H.S.A. accounts
2013 H.S.A. guidelines


Casualty Corner



In the last issue we talked about how complicated an auto insurance policy can be.  We went over the liability portion of the policy.  In this months issue we will talk about some of the optional coverages and the pros and cons to adding them.


UMPD (Uninsured motorist property damage) - This optional coverage is usually added to a liability only vehicle.  The uninsured motorist property damage insurance cover protects a driver who may be hit by a negligent driver without insurance. This coverage allows the driver to claim for compensation to damages to their vehicle.


Comprehensive coverage- Comprehensive Insurance Coverage is insurance coverage that helps pay for losses to an insured car due to fire, theft, vandalism, hitting an animal, glass breakage, or other losses that are not the result of a collision as stated in the insured's policy.  There is usually a deductible that is associated with this coverage.  The deductible is chosen by the insured when they purchase the police.


Collision coverage - Collision Insurance covers the damages of the car resulting from a collision with another car or object. Collision coverage reimburses you for the repairs or replacement costs of your car after an accident. A deductible usually applies with this coverage as well.  There are many reason that people choose this coverage.  If they have a loan in the vehicle it is required by most lending institutions.  Also, most people want this coverage on newer car incase they are involved in an at fault accident.


Towing or Roadside service - This coverage is there for you if you have a vehicle breakdown and need to be towed.  One thing on this coverage is there is usually a limit on the amount covered.  So if the policy only covers $50, you would be responsible for any cost above and beyond that amount.

Substitute Transportation or rental car coverage - This is an added coverage if you want a rental car in the case you are involved in an at fault accident.   If you were not at fault in the accident, then the other company is liable to put you in a rental vehicle whether you have Substitute Transportation Coverage on your policy or not.  If you are at fault, in order to have coverage to pay for you to get a rental car you have to have this coverage added.  This coverage premium is based upon the coverage you choose.



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Dear Client,

The Utah Legislative session has now ended and we are pleased with the outcome of the bills with insurance related topics. 

The Supreme Court has heard discussion on the constitutionality of the individual mandate of the new PPACA laws and we anxiously await their decision.  They should rule on their decision early June. 

We anticipate having our annual client seminar shortly after their ruling so we have a better understanding and can provide better direction as to how this will affect health care reform going forward.


We will keep you updated on any further communication.


Your friends at Keyes Insurance Services, Inc.


Enrollment in High Deductible Health Plans continue to show steady growth across the country
In a recent survey by Devenir, an investment firm that specializes in investment options for H.S.A. accounts, found that  H.S.A. account investments has surpassed $12.4 billion in more than $6.8 million accounts in 2011.

 Health Savings accounts were first made available in 2004 and have grown at an astounding rate each year. 

We feel there are several reasons why H.S.A. compatible plans continue to gain popularity.  First, they work. With the current trend, Health Savings accounts are serving their purpose.  They are providing a great tax savings option and helping people save for future medical expenses. 
Another factor in the growth of HDHP is companies wanting to align their benefit offerings with what is considered standard in the marketplace.  The majority of large employer groups in todays market now have at least one HDHP plan in their benefit line up.
We feel necessity is another big driver in the increase in HDHP plans offered.  Because of the high cost of health care many employer groups are unable to offer the more traditional style plans any longer.  Employers see HDHP plans as a low cost option that gives them additional contribution options through an H.S.A. depending on their budgets.
Although the medical inflation is the lowest we have seen in several years, we forsee the trend with the H.S.A. growth to continue. 
If you have any questions or would like further information on how H.S.A.'s could benefit your company, please let us know.
2013 H.S.A and HDHP Guidelines Released


Although the official publication has not been released, a notice from the IRS has indicated the contributions and plan deductible minimums and maximums for the 2013 plan year. 


2013 Annual H.S.A. contributions

Single - $3250

Family - $6450

Catch up (55+) - $1000


Minimum Deductible for Qualified HDHP

Single - $1250

Family - $2500

Health Care Reform for
Small Business

  Supreme Court Building

Things small business owners should know about employee benefits under PPACA


  • In 2014, companies with 50 0r more full time employees will be required to provide health insurance for their workers or pay a penalty.  This of course could change if the Supreme Court determines portions of the PPACA laws unconstitutional.
  • Employers that do provide health benefits are eligible for a tax credit.  Small businesses that have fewer than 25 employees, cover at least 50% of their premium, and your employees have averages wages of less than 50k per year are eligible for the Small Business Health Care Tax Credit.  You will want to talk to your accountant for more details and complete IRS form 8941.
  • Reporting of benefits on employees W-2's will remain optional for small employer groups filing fewer than 250 w2's.
  • Employers with 20 or more employees must continue to provide employees proper employee notices for COBRA continuation.