Thursday’s Post 1.26.12 –  Those U.S. travelers involved in the Costa Concordia Cruise Ship tragedy may not find any financial relief in their own U.S. Court System or the Ship’s Liability Insurance Policy. This is the fear of  many of the U.S. Citizens and families of the victims on-board the doomed ship. Since the Passenger Travel Tickets were purchased through an Italian owned Cruise Company, any law suits sought would need to be filed and heard in an Italian court or european legal system. This is not the first time a foreign cruise line has had an accident in european waters with U.S. Citizens aboard.  It’s also not the first time there has been attempts to challenge the ticketing contract clause of a non U.S. Cruise Line which prohibits American citizens to initiate litigation in the United States Court System against a foreign Cruise Line or it’s liability insurance policy.

In a previous case; a U.S. Appeals Court found against an american claimant stating her physical,  financial  and liability insurance policy limitations did not supersede the contract she engaged in while traveling on board the non U.S. vessel. The Florida-based Carnival Cruise Lines (who owns the Costa Concordia) will  not face any liability in American courts, as the fatal accident happened while in Italy. The survivors and the families of those whom perished in the Costa Concordia disaster will be limited to seek relief through non-domestic means. These means would include,  filing legal action in a foreign court and seeking monetary relief through the liability insurance policy maintained by Carnival Cruise Lines.

-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 1.23.2012 –  Oklahoma lawmakers submitted a Bill for review and ratification, which would prohibit drivers from using their cell phones for text messaging.  Legislators have also introduced a companion  law which would impose major fines and increased Car Insurance Rates for those drivers whom ignore the new laws. The new laws will not apply to reading electronic messages provided by your motor vehicle’s monitoring systems and or a GPS Monitor which are considered not as much of a distraction. The biggest change in these laws would be the proposed penalty would constitute a true moving violation.  These violations would also carry the same fines and possible licenses suspension measures for repeat violators. For example, the proposed laws calls for a first fine of $200 and double and triple fines for repeat offenders. If  it’s determined a driver is involved in any type of traffic accident, regardless the severity while texting,  your car insurance rates would increase dramatically.  The problem in most states is these laws and moving violations are considered a “secondary violation.” Law enforcement could not pull over a motorist solely on the suspicion the operator is or was reading or sending a text message. The state of Oklahoma is one of a few states which don’t have serious laws regarding texting while driving a car. This will also have a major effect on both the cost of Car Insurance Rates and the renewal insurance Policy.  As mention in the earlier narrative, texting while driving has been considered a minor violation.  With the new emphasis on texting as a more serious offense, drivers should expect higher online car insurance rates and more severe violations as a result of these texting infractions.

The general public in almost every U.S. State have pointed out the hazards of driving while texting or engaging in other distracting practices behind the wheel. Distractions behind the wheel of the car was cited as a factor in as many as 10% of all accidents on our streets and roadways.

-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 Post January 23,2012 –  Two former Walmart  employees have re-filed a sex discrimination lawsuit claims against the nations largest retailer.  The female employees whom filed the action against Walmart say they were  intentionally prevented from advancement within the company because they happen to be women and not men. Last year, 1,500,000 present and former female employees (including the present litigants) had filed a class action law suit making the same claims.  The U.S. supreme court dismissed that  suit of both former and current female employees, who made up the original class of the lawsuit.  To the courts surprise; the Walmart discrimination case has had unanticipated side effects of affecting other class-action lawsuit cases waiting to be heard by the nations highest court.

A few of the same female employees pursued a law suit against Walmart in a lower Federal Court in San Francisco this past fall. Although the highest court in the U.S. would hear the case; the claimants would focus their claims of discrimination only occurring in the State of California. Walmart  immediately responded to the new case by filing the necessary legal paperwork for immediate dismissal of the case.

Walmart attorneys argued the claimants move is nothing short of attempting to revive the previously dismissed case and class. When the court reviewed national statistics employment statistics;  the women’s claim focuses on the specific statements by managers and supervisors, specifically those that suggest discrimination in cases of career advancement and salary increases.

The new case focuses on an episode that may or may not have happened in 2004.  A Walmart executive made a generalization that women being more suited for “information processing” while men were better at  completing  a  task. The women whom heard the statement felt the executive was saying men were a much more profitable gender.

Just like when you buy a car insurance policy from and the auto insurance company; the carrier takes on the financial responsibilities of compensating others for those errors made by the motor vehicle owner. Businesses can do the very same thing by purchasing Business Liability Insurance Coverage.  When a large Company, like Walmart, makes an error and must make financial restitution. Although no decision in the Walmart case has been determined – if Walmart is found to be guilty, the business liability insurance purchased on Walmart’s behalf.

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 January 21, 2012 –  In 2010 – 2011; everyday folks whom received both an auto insurance quote and homeowners insurance quotes online showed much  less interest in the multi-policy discount provided by most insurance carriers than how much they could saved on purchasing their policies separately.  Survey’s show that less than 1/2 of all homeowners have a  package home and car insurance carrier discount. This number is down from 54% of all Auto and Homeowners insurance customers per a report from a few leading homeowners insurance carriers. Visitors to internet auto insurance quote sites which also sells homeowners insurance exclusively, proved a limited level of interest in package discount. These insurance buyers were more interested in getting a reasonable price on their homeowners insurance. This is despite the fact that a homeowners insurance monthly premium is normally is cheaper when combined with another like an auto insurance quote.

The national average on an annual homeowners insurance premium amounts is about $660. Many of your Big-Box insurance companies like Allstate Insurance, State Farm Insurance and even now Progressive Insurance have multi-policy programs which provide healthy discounts for both packaging the premium for their  home and the auto insurance quote into one easy monthly payment. These discounts can save you from 15% to 20% a year. Insurance companies can package more than a home and auto.  They can even include insurance for a families Motor Home, Boat, Snow mobile,  jet-skis for a single low monthly payment.

-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 January 20, 2012 –  Drivers whom buy their budget auto insurance in the States of Iowa, South Dakota, and North Dakota are very lucky indeed.  These drivers feel they have really cheap car insurance rates.  This is in contrast to other states, like Louisiana, Washington D.C. and  New Jersey which all suffer with a high level of frustration with the highest car insurance rates in the nation.

Cheap car insurance rates are regarded as a indicator of the economy where inflation is to blame for steady increases in many types of cost of living expenses across the board. These states cheap car insurance rates  face little chance of increase while they continue to experience a truly steady and competitive insurance marketplace. Cheap car insurance buyers always greatly benefit from a stable and closely underwritten insurance marketplace.

On the other side of the coin, Louisiana insureds face the most costly car insurance rates in the nation. At an average of $150.00 per month for liability only;  Washington D.C. and New Jersey are the most expensive states . This Auto Insurance Comparison Report was based on actuary and statistics data ordered by NIAC. The results are available at the group’s official website, and includes data for multiple years with statistic and costs of coverage and exposure, losses and claim submissions.

The report above was compiled using the public data  and information found on the NIAC Web-Site. Personal Injury Protection (PIP), Uninsured Motorist, No Fault Insurance and other special circumstances are included in the final per-state estimates.

State laws are also considered in making determinations on the cost of  Discount Auto Insurance Premiums for single vehicles on a by-state basis, as well as costs for collision repair, crash rates and theft statistics, along with other available data.

-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 1.19.12 – A specialty insurance carrier in the State of California is offering a new group of innovative insurance policies. The new policies being underwritten will offer liability insurance policies for privately owned horses, including death, commercial car insurance coverage availability and additional products for the owners of stables and farms. Momentous Insurance is a well-known Insurance Broker which specializes in covering the possessions of wealthy individuals.  The Insurance Broker has a strong track record in offering “luxury coverage” for high-dollar ventures such as equine sports and horse breeding. They also provide car insurance  for cars priced over $100,000.00 and and Homeowners Insurance for dwellings in excess $1,000,000.00.  Insuring Horses involves both an individuals personal assets and business-related expenses. The insurer’s previous ventures into this class of insurance should make this new venture less of a risk.  The insurance carrier has provided previous underwriting oversight over the equine industry and related professions. Trainers and other equine professionals will be eligible for insurance coverage.  The insurance carrier is confident in their experience to bring a highly personalized product to equine hobbyists, athletes, and equine related business owners.

The specialty insurance carrier is one of the few high-end asset insurers providing both car insurance and personal effects insurance coverage in the United States, as well as a top broker for insurance of all kinds. The west coast based insurance carrier has always specialized in programs for high net worth clients, as well as providing insurance coverage for interesting ventures like the motion picture industry, television, musical groups and touring entertainment actors.

-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  January 18, 2012 –  When will the administrators of the NFIP figure out why they are having such a difficult time paying their bills?  The National Flood Insurance Plan which has lost money for years got another new lease on life this month. Leaders in the insurance industry appreciate the extension by both the Obama Administration and the U.S. Congress for additional time to right its sinking ship. The NFIP would have expired at midnight on December 31st.  The program’s cancellation would have left in excess of  five million American homes with the required flood insurance coverage required to maintain a mortgaged property against damages.  Waiting for this programs extension has been frustrating and has rattled a few nerves. in Washington and around the U.S.  This is not the first time the NFIP has been saved by a federal extension.  All involved in the Program have been looking for a permanent solution for the program to survive and continue to serve the public. The National Flood program has suffered the effects of the global economic meltdown, with some in Republican Party wanting the program to finally expire. It’s believed if the National Flood Insurance Program is finally allowed to expire, a private Homeowners Insurance Company would underwrite the program. If this were to happen – a profitable business model would need to be put in place.

So back to the original question. When will the administrators of the NFIP figure out why they are having such a difficult time staying profitable? Answer: Their underwriting guidelines are unrealistic and foolish.  If you want to be a profitable enterprise, your business plan can’t be intentionally unprofitable.  The NFIP is such an enterprise.  It started that way and has continued through years of being bailed out by the federal government every single time it loses money.  If you own a home on the beach in Malibu, California; and the house is swept away by a storm – the typical Homeowners Insurance Company will pay the claim, rebuild your house – but not reinsure the home. This is fair.  On the other side of town you have the NFIP. They will pay the claim, rebuild your home, then do it again 15 more times over the next 30 years. With a business plan like that – no one should question why they are always broke. If the Fed would allow someone with real underwriting experience to take over the Flood Program and lend some discipline to its business practices – they would finally be profitable. Unfortunatley; with the current administration running the federal govenment the same way – I would not expect any type of change soon.

-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  1.17.12 –  An Illinois court has approved payments by AIG Insurance Company as a settlement from the allegations made against the largest insurance company in the world. The law suit alleges the insurance carrier failed to make mandatory monetary donations to State Workers Compensation Fund by intentionally misreporting its market share of Insurance premiums. The agreement was in response to claims by other Workman’s Comp insurance companies that AIG had intentionally reduced the value of its holdings in order to cut its financial responsibilities toward that states insurance fund. AIG will be responsible for reimbursing the state over $450,000,000.00. The Settlement comes as an alternative to going to trial.  The allegations against the insurance carrier, true or false, may prove damaging to the company’s reputation. These representations to Illinois regulators allegedly started the early 1980’s. Laws in many other states require that insurance concerns like AIG contribute  funds to cover payments made to uninsured workers whom may be hurt on the job.

Before the close of 2011; the Chicago Judge whom decided the case approved the entire payment amount and structure when AIG needs to cut the big check.  Although the amount was near 1/2 a billion dollars, the Judge considered the amount fair and acceptable. Not every insurance carriers whom brought the original law suit are happy with the amount of the settlement. Liberty Mutual Insurance Company, one of the nations largest auto insurance carriers, stated the payment is an obvious attempt by AIG to avoid the truth of the insurance companies under-reporting.

-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 Post 1/16/12 –  A life insurance-settlement company  is facing legal action by the securities and exchange commission after allegations the company fooled investors with bad information and systematically reporting intentional errors in its business and risk-assessment practices. Three company executives for the company are accused of low-balling life expectancy numbers of the clients it purchased life insurance policies from, causing drawn-out extended losses to the company investors who were misled on which life insurance risks to avoid. The SEC concluded the senior executive staff caused intentional financial harm to its investors point out poor risks.  Because the underwriting physician issuing the life expectancy judgments had no prior experience in the field, these underwriters based its death estimates on bad premium calculations. Two of the executives were also accused of insider trading while being aware of the system of overvaluation of the company’s holdings.  The SEC alleges that the illusion of a stable company and revenues created a false sense of security in investors who believed the company was solvent. All the top executives involved in this complicated deception carried on a long and dramatic concealment of the risks facing the firm. This included doctoring financial information with faulty account information, while earning money by their illegal activities through the use of insider stock trading. The information used to  for their trading practices was not available to the stock trading and general public.

-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 1/15/12 – Even though efforts to change auto accident repair laws in the State of Massachusetts have all failed in the recent past, a car insurance trade organization has renewed its efforts to change the laws which would support a more standard and  fair process for setting repair shop charges.  There is a bill now in the state house to be reviewed by lawmakers.  It would establish a sub-committee to review the  hourly rates for what both auto body and automotive repair shops charge for repairs as a result of car accidents.  The law would set proper minimum and maximum charges by both auto body shops and mechanical repair facilities.  The established rate chart of repairs should raise the profile of auto-body technicians whom are required to charge the lowest repair rates of any state in the country.  This committee would be empowered to set new rates of pay for workers that would bring their earnings in line with rates for the rest of the repair shops in the United States.

Workers in the auto repair and collision repair industries have seen a stall in their rates of pay over the last several years. Legislators say this happens because auto insurance carriers systematically choose a lower-rate auto facility to repairs vehicles covered by auto insurance. The state representatives for the bill feel many body shops involved in the practice of using sub-standard parts in repairing vehicles to keep their rates low and continued to receive referral work from the same auto insurance carriers. The insurance industry feels the marketplace, not state government, should be responsible for setting rates and establishing guidelines for paying its workers. They believe the new law will push-up the cost of car repairs.

-Mike

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