Oscars: Insuring body parts and borrowed bling

If your favorite actress looks a little nervous walking the red carpet on Oscar night, it may not just be a bad case of award jitters. Many of the multi-million-dollar jewels actors wear on Oscar night are borrowed -- as are many gowns and even the watches. Stars sign written agreements before walking away with boxes and bags full of silk, taffeta and bling that they're willing to be held financially responsible for returning everything in good shape. And that can be a tall order.

Whether it's an earring that fell off during the post-award parties or a wardrobe malfunction like the one reportedly suffered by Lindsay Lohan after a celebrity fundraiser that left her $1,800 beaded gown in tatters, losses can and do happen.

In fact, Courtney Love just settled a two-year old battle over $100,000 worth of baubles she wore to a charity event in 2010, which she claims had been lost in transit while being returned to the jeweler. Neither side will say how much Love had to pay, but the jeweler had originally won a judgment for $113,000.

Celebrities, like the run-of-the-mill millionaire, typically buy insurance to protect the borrowed bling and then back up those policies with a bouncer or two, who ensure that the celebrity isn't robbed on the way to the awards. (Carrie Underwood reportedly had a bad case of the jitters when wearing a $31 million diamond necklace to the Grammy's this year, telling friends that she was afraid somebody would tackle her for the 381-carat diamond necklace.)

But borrowed gowns and jewelry are not the only unusual items that celebrities feel they must protect with a written insurance policy. Pete Moraga of the Insurance Information Network of California says many also insure their most noteworthy body parts, too.

For instance, Dolly Parton has a $600,000 policy on her breasts. Keith Richards has a policy on his hands, while both Rod Stewart and Bruce Springsteen have insured their voices. And insuring body parts is old hat in Hollywood.

Silent film star Ben Turpin insured his famously crossed eyes. Marlene Dietrich had a $1 million policy on her raspy voice, while Betty Grable put $1 million in insurance on her legs. Jimmy Durante insured his nose for $50,000.

This kind of insurance is unusual, but it's not unique to celebrities. Moraga notes that British food critic Egon Ronay reportedly insured his taste buds for $400,000. If you were a hand model or a wine expert, completely dependent on your sense of smell or taste, you might need specialized coverage too.

It's worth noting that the run-of-the-mill secretary doesn't need to insure her typing fingers, nor does a waiter need to insure his feet, if they have a standard disability policy, which would compensate them if they were unable to work. It's only if your livelihood hinges on some uniquely valuable quality or talent that specialized insurance would be called for.

However, disability policies have limits, as do most other types of insurance. And those who have high-end jobs or exceptionally valuable possessions can't rely on standard insurance to protect them.

For instance, any millionaire with an art collection or safe full of jewelry would be wise to buy a separate policy -- or a rider on their homeowner's policy -- to cover those unique risks because homeowner's coverage typically limits losses on art and jewelry to a few thousand dollars each.

There's no standard cost of covering your art work, bling or legs, however. The price of these policies are as unique as the people insuring them. Insurers hesitate to even provide a range, since each policy is individually underwritten accounting for both personal and professional factors. A notorious partier is likely to pay vastly more to cover borrowed bling than a less notorious star. Additionally, a person who wears their multi-million-dollar jewelry collection regularly would pay far more than someone who stored their jewels in a bank vault and simply called their insurer every time they took them out for a special occasion.

Then, too, you'd pay more to cover a $1 million set of earrings -- the most likely jewelry to get lost -- than if you wore multiple items, which together were worth $1 million. The reason, says Donald Soss, vice president of personal lines insurance at Fireman's Fund, is because you're much more likely to lose one item than many all at the same time, thus the insurers chance of a total loss is smaller.

by 

KATHY KRISTOF / 

MONEYWATCH/ February 22, 2013, 6:29 PM

Celebrating President's Day? Have Some Cherry Pie!

Presidents Day is celebrated on the third Monday of February, which always falls between February 15 and February 22. Since the day falls between the birthdays of George Washington and Abraham Lincoln, most people take the opportunity to honor both men. Others celebrate all presidents on that day. (Technically, the third Monday in February is designated as Washington's Birthday, but many states recognize it as Presidents Day.) 

However you decide to recognize the day, we think you should start with a cherry pie!

Fresh Cherry Pie Recipe

• • Prep: 25 min. Bake: 55 min. + cooling
  • Yield: 8 Servings
  2555

80

Ingredients

• 1-1/4 cups sugar
• 1/3 cup cornstarch
• 1 cup cherry juice blend
• 4 cups fresh tart cherries, pitted or frozen pitted tart cherries, thawed
• 1/2 teaspoon ground cinnamon
• 1/4 teaspoon ground nutmeg
• 1/4 teaspoon almond extract
• PASTRY:
• 2 cups all-purpose flour
• 1/2 teaspoon salt
• 2/3 cup shortening
• 5 to 7 tablespoons cold water

Directions

• In a large saucepan, combine sugar and cornstarch; gradually stir in cherry juice until smooth. Bring to a boil; cook and stir for 2 minutes or until thickened. Remove from the heat. Add the cherries, cinnamon, nutmeg and extract; set aside.
• In a large bowl, combine flour and salt; cut in shortening until crumbly. Gradually add cold water, tossing with a fork until a ball forms. Divide pastry in half so that one ball is slightly larger than the other.
• On a lightly floured surface, roll out larger ball to fit a 9-in. pie plate. Transfer pastry to pie plate; trim even with edge of plate. Add filling. Roll out remaining pastry; make a lattice crust. Trim, seal and flute edges.
• Bake at 425° for 10 minutes. Reduce heat to 375°; bake 45-50 minutes longer or until crust is golden brown. Cool on a wire rack. Yield: 8 servings.

Nutritional Facts1 serving (1 slice) equals 457 calories, 17 g fat (4 g saturated fat), 0 cholesterol, 153 mg sodium, 73 g carbohydrate, 2 g fiber, 4 g protein.

What Determines the Price of My Auto Insurance Policy?

The average yearly auto insurance premium is about $900, but there is wide variation around this average. Many factors can affect your premium. Not all companies use all of these factors, and some might use factors not listed here. Your premium may depend on:

 

1. Your driving record.
The better your record, the lower your premium. If you have had accidents or serious traffic violations, it is likely you will pay more than if you have a clean driving record. You may also pay more if you are a new driver and have not been insured for a number of years.

 

2. How much you use your car.
The more miles you drive, the more chance for accidents. If you drive your car for work, or drive it a long distance to work, you will pay more. If you drive only occasionally—what some companies call “pleasure use”, you will pay less.

 

3. Where your car is parked and where you live.
Where you live and where the car is parked can affect the cost of your insurance. Generally, due to higher rates of vandalism, theft and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas. Some areas are also prone to more lawsuits and higher medical care and car repair costs.

 

4. Your age.
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.

 

5. Your gender.
As a group, women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs) and most importantly less serious accidents than men. So, all other things being equal, women generally pay less for auto insurance than men. Of course, over time individual driving history for both men and women will have a greater impact on what they pay for auto insurance.

 

6. The car you drive.
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car. Engine sizes, even among the same makes and models, can also impact insurance premiums. Cars with high quality safety equipment might qualify for premium discounts.

 

7. Your credit.
For many insurers, credit-based insurance scoring is one of the most important and statistically valid tools to predict the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.

 

8. The type and amount of coverage.
In virtually every state, by law you must buy a minimum amount of liability insurance. Buying higher limits will cost more, but not proportionately more. So twice the minimum liability coverage will not double the premium. If you have a new or recent model of car, you likely will also buy comprehensive and collision coverage, which pays if you are responsible for damage to your car. Comprehensive and collision coverages are subject to deductibles; the higher the deductible, the lower your auto insurance premium.

Contact Modern Insurance Marketing, Inc. for your auto insurance quote and all of your insurance needs!