Saturday’s Post 12.31.11 –  Hartford Auto Insurance Company will join the growing list of auto insurance carriers who offer clients the opportunity to earn breaks on their policy rates through the use of devices that track miles driven, driving speed and other essential data automatically.  The beta of a program titled “TrueLane” will be available within the first six months of 2012. This technology will provide a record of driving behaviors, and provides a discount on their auto insurance rates. According to a Hartford Auto Insurance spokesperson, the system will keep track of clients’ driving activities for a specific period of their policy and make them eligible for a discount upon the first renewal of their auto insurance policy based on the information provided by the tracker.  The TrueLane tracking device stores driving data and sends that information back via cell towers to The Hartford for storage and analysis. The program is voluntary tracking program offered as an incentive to qualified auto insurance policy holders. The device captures driving information on driving speed, miles logged, braking patterns, turns, rates of acceleration and data about the times when the insured vehicle is being operated.

This technology will likely establish The Hartford among the upper echelon of major insurance carriers – ranks that include State Farm Insurance, Allstate Insurance Company , Travelers Insurance Company and  Progressive Auto Insurance Company. These carriers all offer electronic tracking devices to report data from a client’s car  back to the auto insurance company. These devices remove many of the uncertainties from offering auto insurance policies by giving insurance carriers the information they need to make underwriting decisions  that exceeds the quality of self-reporting, or information on clients available from public sources.  In addition; these advancements means Car Insurance Underwriters can effectively look at risk factors and premiums with more accuracy than ever before. This should lead carriers to offer rewards to motorists such as auto coverage discounts for keeping their mileage limited, and adhering to safe driving practices in their everyday vehicle operation.

-Mike 

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Thursday’s Post 12.29.11 –  Allstate Budget Car Insurance Company has begun proceedings to take back over 6 million dollars from more than eighty organizations in New York, New Jersey and Pennsylvania whom were paid for allegedly fraudulent Auto Insurance claims. The action falls under the State’s RICO statutes.   Allstate Insurance Company provides both Car Insurance Quotes and Homeowners Insurance Quotes both on the interent and through independent auto insurance agents. 

The lawsuit states claims that more than a dozen defendants engaged in fraud. Over the past eight years, Allstate Car Insurance has instated proceedings in more than thirty lawsuits in NY trying to reclaim close to $200 million in fraudulent car insurance claims. In information provided by the Institute for Insurance Information, the claims that New York State finds itself in a crisis of fraudulent insurance claims practices, with so-called “no fault” fraud claims resulting in millions in escalating premium payments for state residents. The heart of the Allstate lawsuit claims that retailing operations – both through the companies’ proprietors and through collusion with wholesaling organizations and those proprietors –submitted for payment fake backup documentation to the insurer, to be paid by New York’s “no fault”  car insurance legislation. The auto insurance companies are receiving support from other insurance agencies and a host of state politicians in their push to change the current system of no fault auto insurance payments. A representative from Allstate’s main headquarters explained that the zero fault system in place is open to exploitation, and that law-abiding people were suffering for it. She went on to explain that politicians would need to support reforms, or else instances of fraudulent practices would keep up their upward trend. She cited the necessity of working in concert with pertinent parties to repair the system currently supporting these fraudulent enterprises. The law suits against the car insurance fraudsters was initiated after an internal special investigation was commenced, revealing these activities. The claim attempts to recuperate individual auto insurance claims coverage losses from funds the insurer disbursed for its clients, for the range of time indicated in the filing.

–Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Sunday’s Post 12.25.11 – The North Pole –  Friday 12/24/11:  In a unanimous 8-0 decision which did not surprise any on-lookers in the court’s gallery yesterday morning;  Saint Nicholas was found “Not Guilty” of causing two house fires Christmas last year. It was nearly a year ago, 12/25/2010, when Fire Departments in Pittsburgh, Pennsylvania and Trenton, New Jersey were called to put out two living room fires which were mysteriously started and very similar.  Although no one was hurt and thankfully no children’s christmas gifts were lost; the damage in both fires cost the families homeowners insurance companies $1000.00 each.  The Fire Chief in both cities determined the damage was both caused by Santa when he entered the home and accidentally tripped over a burning log when coming down the chimney. 

Coincidently; both homeowners purchased their Auto Insurance & Homeowners Insurance through InsureDirect at www.insuredirect.com.  Although the claims were paid immediately and without question of fault , the homeowners insurance carrier felt Santa was responsible and his Business Liability Insurance Company through North Pole Mutual (NPM) should reimburse the cost of the damage.  After North Pole Mutual conducted their own investigation, they declined to reimburse the cost of the damage which landed to two insurance companies in court yesterday. Santa’s Insurance Company determined the logs in both fireplaces were not disturbed by Santa and the fire started when candles were knocked over by the family pet in both houses.  The Jury agreed with the attorneys explanation for North Pole Mutual and found Santa “Not Guilty” of causing the damage.  Santa’s flawless Christmas Eve travel record has been maintained as he gets ready for Christmas. Although hundreds of reporters waited outside on the court-house steps so he could answer questions; Santa was reported to not have time for interviews and immediately returned to the North Pole to prepare his sleigh for this years Christmas Deliveries.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Saturday’s Post  12.24.11 –  According to a report from the Texas Department of Public Safety (DPS), the states department of motor vehicle;  safety officers have disposed of around 66,000 unsafe commercial vehicles and suspended the commercial drivers license’s of more than 12,000 unsafe commercial drivers since the beginning of 2011. The Director of  the Texas Department of Public Safety said that more than  300,000 commercial vehicles were analyzed by vehicle enforcement personnel and Texas Highway State Troopers. Out of their analysis, the DPS eliminated more than 66,000 vehicles and 12,000 drivers from the state’s roadways as they were deemed to be breaching safety margins. It’s been determined Commercial Vehicles are responsible for more than 15% of the fatalities in Texas auto accidents every year. Where most drivers choose to obey the law; others attempt to drive safely in unsafe vehicles or drive unsafely in perfectly safe vehicles.  In some cases, drivers were found not to carry any type auto insurance.  Operators like these “pose a serious threat” to everyone travelling on Texas’s roads and highways. The aim of this program is to reduce the number of crashes caused by unsafe commercial motor vehicles and drivers who operate their vehicles recklessly.

One DPS enforcement operations  falls in an area called “Operation Texas Thunder”. Following continuous objections about truck traffic in McMullen Country, Operation Texas Thunder suspended around two-thirds of all vehicles inspected.  In another event during Texas Thunder operations held in the Corpus Christi area, 400 fines were cited and 206 cars were eliminated from the Texas Streets. The outstanding work by these Texas State Troopers and inspectors has undoubtedly prevented hundreds of accidents and saved even more lives and prevented injuries. Other efforts have been brought to bare to uncover Texas companies inclined to violate the law and place innocent people in danger.  These companies knowingly keep dangerous vehicles  and drivers on Texas Highways.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Friday’s Post 12.23.11 –  Since the passage of Obama Care nearly 13 months ago, both private business concerns and state governments all over the United States have been looking for a way out of participating the  highly unpopular and costly Health Insurance Program.  Although the majority of the program’s provisions have not gone into effect, health insurance costs have skyrocketed.  Our own company’s group health insurance has increased by 40% for no rhyme or reason.

A few weeks ago, The United States Supreme Court started scheduling appointments  for hearing arguments in late March 2012 regarding the controversial healthcare overhaul law of President Barack Obama. The high court consents a proposition made by three parties in the legal battle and by two attorneys who have been assigned to debate with certain standings. The court concluded that the first set of briefs must be submitted in early January. In February, the other side will file their briefs, and finally, reply briefs would have to be presented in early March to finally be heard by the end of that month. Last November 14, the Obama administration implored defending the law and urging it to be divided into two separate appeals in 26 states and an independent business group challenging the law and prompting it to be liquidated.

The court will need to answer the following questions:

1.  Did the  U.S House and Senate exceed its authority when it required all Americans to buy health insurance by 2014 or pay a penalty?

2.  If Obama’s mandate is illegal;  will the rest of the law be able to survive?

3.  Do challenges to the mandate have to abide until they take effect in 2014?

4.  Did the congress improperly coerce the states to increase the Medicaid program which provides healthcare to the poor and the disabled?

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Thursday’s Post  12.22.11 –  A Louisiana Property Insurer which formerly owned 11,000 Homeowners & Renters insurance policies that were transferred to the private insurance market. The Insurance Commissioner of Louisiana, announced that 11,000 homeowner policies have been shifted to the private insurance market during the recently completed depopulation from the Louisiana Citizens Property Insurance Corp. (better known as Citizens Insurance) Citizens Insurance has only 105,000 policies remaining. In light of the recent  Homeowners Insurance depopulation, Citizens’ market share has dropped to 6th in terms of market share.  There was not mention of Car Insurance.  Citizen’s Insurance Company does not market Auto Insurance Policies.

Louisiana Citizens Property Insurance Corporation is a nonprofit organization that provides insurance coverage for both residential and commercial properties for applicants who are allowed but unable to obtain insurance through voluntary insurance marketplace. In 2005, Citizens population grew significantly after the impact made by Hurricanes Katrina and Rita. Its policy count peaked in September of 2008, when it reached 174,000. The following year, in 2009, Citizens homeowners’ market share plummeted to nearly 7% of the market. This was the lowest since Hurricane Katrina in earlier in the decade. The depopulation process intends to help all property owners by diminishing assessments charged to all property insurance consumers.  During this round of depopulation, five companies have taken over responsibility of the policies. These include Occidental, Lighthouse, Capitol Preferred, Access Home, and Centauri Specialty.  In total, 32,000 policies were requested by the five companies and 11,000 policies were approved by Citizens to transfer. Citizens teamed-up with independent agents, as well as agents at Allstate, State Farm and Louisiana Farm Bureau to facilitate the flawless and hassle-free transfer of policies.  In the earlier rounds of the policy transfer of Citizens, the following reductions took place. So far, private insurers have already taken out nearly 70,000 policies  from Citizens Insurance Company.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Wednesday’s Post 12/21/11 –  According to recent studies, hybrid cars may be much safer for its passengers. On the other hand, because of  their weight and reduced noise; pedestrians are unlikely to hear an approaching hybrid increasing chances  and severity of  serious accidents.  From statistics gathered by the Highway Loss Data Institute (HLDI) of Virginia, chances of being injured (as passenger) in a crash of a hybrid model are 25% less than that of their non-hybrid counterparts. The group, which is an affiliate of the Insurance Institute for Highway Safety, says that weight is a big element in the safety of the car. In general, Hybrids are heavier than a standard compact car. The added weight is because of its battery packs and other parts that are necessary in dual-power systems. A hybrid Honda Accord weighs around 3,600 while a conventional Accord just weighs 3,120 pounds. That’s a 4,500-pound difference.  It is a proven fact that in a collision, the passengers in a larger, heavier car have a greater chance of survival than those in a smaller car. The greater the weight of the car, the less severe the impact would be in the event of an accident.

Auto Insurance Collision Coverage deals with the replacement or restoration of an at-fault or not-fault driver’s car after a  Car Accident. Personal Injury Protection or PIP deals with the medical expenses of the injuries of those involved in a crash regardless of who the driver at-fault is. Medical Payments or Medpay deals with the treatment costs of the insured driver and his passengers when he is the one at-fault. PIP is endorsed in states that have no-fault insurance systems while MedPay is endorsed in tort states. Bodily injury liability coverage insures against medical, hospital, and other expenses for injuries that at-fault drivers cause in an accident. On the other side, the study has also found out that hybrid cars are 20% more likely to be involved in pedestrian crashes, in comparison to conventional cars. Because of the noiseless nature of hybrid cars when operating in electric-only mode, pedestrians are less likely to check left-and-right before crossing the road, fears Matt Moore, Vice President of HLDI.

Between 2004 and 2010, over 25,300 bodily injury liability claims have already been made that are related to hybrid cars. The National Highway Traffic Safety Administration is aware of the increased pedestrian risk and is currently addressing ways to reduce the risks.  Ten months ago, the Congress gave the department three years to mandate hybrids and electric models to equip themselves with alert sounds to notify unsuspecting pedestrians.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Tuesday’s Post 12.20.11 –  On January 1, 2012, Jeff Dailey will become the newest member of the Group Executive Committee of Zürich Financial Services and CEO of Farmers Group, Inc. He will report to Zürich’s CEO,  Martin Senn. Although a promotion of this magnitude would mean a move to Zürich’s Headquarters in Europe, Dailey will continue working from his office in Los Angeles, CA where the Farmer home office s is located. Dailey joined Farmers 5 years ago when he became President of Personal Lines for Farmers Insurance Group. At that time, Farmers obtained the highly successful Bristol West Holdings, where Jeff became CEO. In January of this year, he was promoted to President and COO.

Jeff Dailey’s career began in claims with Mutual Service Insurance in the early 1980’s. During the early years of his career, he successfully advanced through the ranks at Progressive Insurance Company.  In 1996, he formed Reliant Insurance Company, a non-standard auto insurance underwriter growing it to 300 Million in annual premium before it merged with Bristol West Insurance Company located in Florida. The merger saw Dailey promoted to COO of Bristol West Holdings, Inc. from 2001 until 2003. In 2004, he became the president consistent with the firm’s successful IPO on the New York Stock Exchange. He became the company’s CEO two years later. Dailey got his education at the University of Wisconsin-Madison and the University of Wisconsin-Milwaukee, where he received a bachelor’s degree in economics and a master’s degree in business administration.

Personal Note:  I had the pleasure of first working with Mr. Dailey in 1996 when InsureDirect.com became one of Reliant Insurance Companies earliest appointed agencies.  Over the next few years, InsureDirect grew to be one of Reliant’s largest appointed agent’s writing over $5,000,000.00 in annual premium. Of course we maintain our relationship with Mr. Dailey and Zürich as independent agents for Farmers and Foremost Insurance Companies.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Monday’s Blog 12.19.11 –  The National Highway Traffic Safety Administration has come up with a new classification system for fatal road accidents involving distracted drivers. This new system will refine data collection and help to distinguish better the number of road accidents whereby the use of Cell Phones and other Communication Devices is directly responsible. Currently, federal agencies use different means to identify drivers who use cell phones or other communication gadgets while driving. Once identified and verified, these cases are classified as careless driving. The new system will designate these cases as distraction-affected accidents.  There will be a major focus on the use of communication devices while driving. As mentioned in yesterday’s Post; distracted driving is a major problem on U. S roads and causes thousands of fatalities and injuries every year. A report from NHTSA shows that a little over  3,000 persons were killed in distraction-affected accidents in 2010.  The use of wireless communication gadgets by drivers not only poses a huge safety hazard, it also comes with hefty financial price. If you are caught talking or texting on your phone in many states today, you are liable for fines and possible license suspension. Insurance companies are also uneasy about teenage drivers whom they term as high risk. It is almost impossible to obtain cheap auto insurance for this age group.

There’s new development came hot in the heels of heightened scrutiny of distracted driving by federal authorities, following recent calls by the NTSB, National Transportation Safety Board,  for all states to ban non-emergency use of cell phones by drivers.  Road crashes involving distracted driving were responsible for 450,000 injuries in 2009 alone.  Officials with NHTSA compare the new classification system to the stance by federal authorities on reporting of alcohol related accidents. Drivers, pedestrians and cyclists with blood alcohol content of 0.01 or higher, were flagged for drunken driving until 2006. Currently, authorities focus their investigations on alcohol-impaired driving accidents, whereby the motorist has blood alcohol content of 0.08 and higher.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Saturday’s Post  12.18.11 – The National Transportation Safety Board is pushing for a ban of cell phones and other electronic gizmos by drivers. This follows a chain reaction major car accident in Missouri last year. The crash left two people dead and several others injured.  Although accident was the last straw, other similar cases over the last number of years were leading up to this decision. Investigations showed that the driver responsible for the crash was text messaging before the devastating car crash took place. Missouri State officials concerned with the accelerating number of these cases are calling on a nationwide ban on non-emergency use of portable communication devices among drivers. This is now including hands free devices.  The ban campaign gained momentum after a meeting by members of NTSB to review the appalling incidence that took place in August 2010 in Gray Summit Missouri. The  accident involved a large truck, a pickup truck and two school buses headed to an amusement park in St Louis.  According to the findings, a 2007 GMC Sierra pickup driven by a teenager, rammed on the back of a slow-moving large box truck, sparking off the accident. The first school bus rear-ended the crashed pickup, and was in turn hit from behind by another school bus.  The accident resulted in two fatalities and thirty-eight injuries.

An accident investigation concluded the teenager sent at least eleven text messages right before the crash occurred. This incident shocked federal authorities, who are now pushing for a ban on texting while driving in all states. Previously, NTSB recommended bans on cell phone use among commercial, bus and youthful drivers only. Now however, they wish to include all drivers from engaging in this behavior while driving.

The board believes that stricter enforcement of rules combined with campaigns with regard to distracted driving is likely to bring about change among US drivers. They also urged manufacturers of portable gizmos to develop features, which discourage drivers from being tempted to use them while driving. Distracted driving that entails use of cell phones, smart devices, applying makeup, changing radio stations and similar activities is highly prevalent on US roads. In 2009, such activities contributed to over 5000 fatalities and nearly 1/2 a million injuries.  Since teenagers are the number one offenders, insurers consider them high-risk drivers and charge higher premiums for car insurance.

-Mike 

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602