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Reliable Insurance Agency




803 Carlton Avenue
Cloquet, MN 55720
(218) 879-4663

5094 Miller Trunk Highway #900
Hermantown, MN 55811
(218) 729-6791
www.reliablemn.com
Hours of Operation
  • Monday – Friday:8:30 a.m. - 5:00 p.m.
  • (or by appointment)

Trusted Choice Independent Insurance Agency


At Reliable Agency, we take the time to understand the needs for you, your family or your business so that we can recommend a customized plan to protect what you value most. Because we are a Trusted Choice ® insurance agency, we work with multiple insurance companies so we may offer you competitive pricing, a broad choice of products and valuable advocacy. This gives our customers a trusted freedom of choice. Our philosophy is simple at Reliable Insurance Agency: We never promise more than we can deliver and we always give the customer more than they expect. We know and understand the industry and we also know that customer service is not enough. We want customer loyalty and we strive for that loyalty every day. Let us provide you a free quote!

Frequently Asked Questions

What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
Yes. Liability and coverage for physical damage (i.e., comprehensive and collision) follows your car. So, if a friend borrows your car and has an accident, you’re still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his/her policy may also be available to cover the cost of damages and injuries.
What Is No-Fault Coverage?
No-Fault coverage is widely misunderstood. Many drivers believe that their insurance company will cover ALL losses in an accident, regardless of who is at fault. But “no-fault” coverage applies ONLY to expenses resulting from injuries sustained in an accident.
Does my policy cover my possessions even when I go on vacation?
Yes. Perhaps in this case the term “homeowners” is misleading because this is a package of insurance coverage that extends to all your possessions no matter where they are. If you take a round-the-world vacation and lose a valuable item, as long as the loss is by a covered event or peril, the location does not matter.
Who decides how much my property is worth?
The common methods are:
  • Actual Cash Value: The replacement cost of the item minus depreciation. For example, a new television set may cost $500. If your seven -year-old TV gets dam-aged in a fire, it might have depreciated 50 percent. Therefore, you would be paid $250 for that TV.
  • Replacement Coverage: The cost of replacing an item without deducting for depreciation. So today's cost for a TV set with features similar to the 7-year-old one damaged by fire would determine the amount of compensation. If it still costs $500 today, that would be the replacement coverage.
  • Functional Replacement Cost: The cost of replacing or repairing an item with the most modern materials instead of the materials used in the original construction. Most commonly used in valuation of older homes remaining in their original construction. For instance, if the interior of a home was finished with plaster when it was originally constructed, then functional replacement cost would use drywall costs to determine the value placed on replacing the home.
What does a disability income policy do?
Disability income is a form of health insurance that is designed to provide you with an income during the time you are unable to work due to illness or injury short-term and/or long-term. This type of policy is HIGHLY recommended for business owners that are excluded from their Workers’ Compensation policy.
Will I ever need to re-qualify to keep my life insurance policy, as long as my premiums are paid on time?
For permanent insurance, no. For term insurance, if an insured wishes to con¬tinue the coverage beyond the specified term, many policies (known as “renewable term”) allow the insured to continue the coverage for another term of the same length, without any need to fill out a new application or undergo an underwrit¬ing review. This is a valuable provision, since the insured’s health or occupational status may have changed during the policy period in ways that would render them uninsurable if they were to try and purchase a new policy.
What does “coinsurance” mean in a health insurance policy?
In a health policy, coinsurance represents the percentage of the medical bills the insured will be responsible to pay after the deductible is met. For example, if your policy is “80% coinsurance”, then once the deductible is met, the insurance will pay 80% of covered medical bills and you pay 20%. Typically there will also be a provision called a “maximum out-of-pocket”, which is basically a maximum amount you will ever have to pay out of your own pocket for covered medical bills. For example, let’s say your policy states it is “80% coinsurance, with a $1,000 maximum out-of-pocket.” Once you’ve paid your deductible, your covered medical bills are $7,000. Here’s how that would work: First, the coinsurance provides the carrier will pay 80% of the $7,000 ($5,600) and you will pay 20% ($1,400). But, your “maximum out-of-pocket” says your maximum payable for this claim is $1,000! So you only pay the $1,000, and the additional $400 comes from your insurance company. Notice this provision gets more valu¬able as the claim gets larger—no matter how large the final claim, or what percent¬age of coinsurance you’ve purchased, your maximum out-of-pocket says your share of the covered expenses will never exceed $1,000.
How do pre-existing conditions affect my health insurance coverage options?
UNDERSTANDING EXCLUSIONS AND CREDITABLE COVERAGE
Many Americans have health-related problems that insurance companies define as pre existing conditions. A pre-existing condition is a health problem that existed before you apply for a health insurance policy or enroll in a new health plan. Insurance companies and health plans will sometimes exclude people with a pre-existing condition; impose a waiting period before coverage starts, or charge higher premiums and out-of-pocket expenses. A pre-existing condition can be something as common and as serious as heart disease, high blood pressure, cancer, type 2 diabetes, and asthma - chronic health problems that affect a large portion of the population. Even if you have a relatively minor condition such as hay fever or a previous accidental injury, a health plan can deny coverage.

Health Reform and Pre-Existing Conditions
One of the hallmarks of the Patient Protection and Affordable Care Act signed into law in March 2010 is the elimination of pre-existing condition requirements imposed by health plans. Effective September 2010, children (below age 19) with pre-existing conditions may not be denied access to their parents' health plan and insurance companies will no longer be allowed to insure a child on their own policy, but can exclude treatments for that child's pre-existing condition. Starting in 2014, this provision will apply to adults as well. Until 2014, the information below remains valid for anyone over age 19.

The Pre-Existing Condition Exclusion
A pre-existing condition can affect your health insurance coverage. If you are applying for insurance, some health insurance companies may accept you conditionally by providing a pre-existing condition exclusion period. Although the health plan has accepted you and you are paying your monthly premiums, you may not have coverage for any care or services related to your pre-existing condition. Depending on the policy and your state's insurance regulations, this exclusion period can range from six to 18 months.
What Is the Part D Late Enrollment Penalty and how can it be avoided?
The late enrollment penalty is an amount added to your Part D premium. You may owe a late enrollment penalty if, at any time after your initial enrollment period is over, there is a period of 63 or more days in a row when you don't have Part D or other creditable prescription drug coverage. 3 Ways to Avoid the Late Enrollment Penalty
  1. Join a Medicare drug plan when you're first eligible. You won't have to pay a penalty, even if you've never had prescription drug coverage before.
  2. Don't go 63 days or more in a row without a Medicare drug plan or other creditable coverage. Creditable prescription drug coverage could include drug coverage from a current or former employer or union, TRICARE, Indian Health Service, the Department of Veterans Affairs, or health insurance coverage. Your plan must tell you each year if your drug coverage is creditable coverage. You may get this information in a letter or in a newsletter from the plan. Keep this information, because you may need it if you join a Medicare drug plan later.
  3. Tell your plan about any drug coverage you had if they ask about it. When you join a Medicare drug plan, the plan will send you a letter if it believes you went at least 63 days in a row without other creditable prescription drug coverage. The letter will include a form asking about any drug coverage you had. Complete the form and return it to your drug plan by the deadline in the letter. If you don't tell the plan about your creditable drug coverage, you may have to pay a penalty.
10. What is coinsurance in a commercial property policy all about?
Most business policies include a "coinsurance" clause stipulating what percentage of the total value of your property must be insured in order to be fully reimbursed for a loss, even a partial one. (Most losses are partial.) If you insure for less than that amount, your insurance company may impose a "coinsurance penalty" on your claim. Note that even if you carry that agreed-on percentage of insurance to value, it may be inadequate and you would not be fully compensated for a total loss. For that reason, it is usually a good idea to insure the full replacement value of your property.

Here's how coinsurance works:
  • Let's say you have a building insured that you believe would cost $100,000 to replace and a coinsurance penalty in your policy of 80 percent.
  • You insure the building for $80,000, thinking you have fulfilled the coinsurance clause.
  • A fire loss causes $60,000 worth of damage, so you submit a claim.
  • Your insurance company subsequently determines that the replacement cost of the building is actually $150,000.
  • To determine how much to pay on the claim, the insurer divides the amount of insurance you purchased ($80,000) by the amount you should have purchased (80% of $150,000 or $120,000).
  • The result (two-thirds, or $40,000) is the amount of your claim the insurer will pay.
  • Thus, even for a partial loss within the monetary limits of your policy, you will receive only two-thirds of the amount claimed. If the building had been insured for at least $120,000, the insurer would have reimbursed you for the amount of the loss.
  • You should check with your agent to make sure you have adequate coverage. Ac-cording to studies, many businesses are significantly underinsured. Adding an endorsement to the policy that automatically increases policy limits to keep pace with inflation is a good idea.
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