Insurance

Commissioner Poizner Announces Two San Jose Men Arrested For Alleged Auto Insurance Fraud

2009-10-22T00:21:00.000-07:00

Commissioner Steve Poizner announced today the arrests of two San Jose men as the result of an investigation conducted by the California Department of Insurance (CDI) Urban Auto Fraud Task Force (Task Force) into alleged auto insurance fraud. Earlier this morning Vu Tuan Phan, 22, and "Billy" Quoc Viet Duong, 22, both of San Jose were apprehended at their residence. Each defendant was charged with one count of insurance fraud, and Duong was also charged with one count of perjury. Each suspect faces a penalty of up to five years in prison and/or $10,000 in fines.
"Filing false insurance claims is not a victimless crime," said Commissioner Poizner. "The costs are passed on directly on to you, me and every other policyholder. All together, insurance fraud costs every man, woman and child $500 a year in California."
The Task Force is comprised of investigators from CDI, the California Highway Patrol and the Santa Clara District Attorney's Office, which is prosecuting the case.
Duong only had liability coverage through his father's insurance company, Mercury Insurance Company, when he stated his Honda Civic was rear-ended in a hit-and-run collision on June 11, 2007. It is alleged that Duong actually wrecked his Honda Civic by backing into an unknown object at a previous point in time. Needing corroboration for the alleged accident, Duong asked Phan, his friend, to state that he was riding in the vehicle at the time of the alleged hit-and-run. Such a role in this scheme is known as the "stuffed passenger." Both Phan and Duong claimed they were injured, apparently in an effort to make the alleged fraud more realistic. After Duong and Phan made statements to the insurance company, Phan admitted that he was never in the Honda Civic when it was wrecked. Phan stated he was just trying to help out his friend.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Nearly 1,900 insurance fraud-related arrests have been made by CDI since Commissioner Poizner took office in 2007 - more arrests than have been made during any other two year period, under any previous insurance commissioner.

Insurance Commissioner Poizner Announces $34 Million Reduction for 21st Century Auto insurance Policyholders

2009-10-22T00:17:00.000-07:00

Poizner has approved almost $2 billion in rate cuts for consumers since taking office in 2007
Insurance Commissioner Steve Poizner today was joined by Shannon Kelly, 21st Century Senior Vice President, West Region, to announce a $34 million rate reduction for 21st Century Auto Insurance Company policyholders in California. This represents an average decrease of 3.4 percent.
"I am happy to approve a rate cut that will allow 21st Century policyholders throughout the state to save $34 million," said Commissioner Poizner. "Insurance rates for Californians have been cut by nearly $2 billion since I took office in 2007. I'm pleased that 21st Century is demonstrating responsible business practices by passing along savings to valuable customers."
As the seventh largest auto insurer in the state, 21st Century insures more than one million vehicles in California, covering approximately five percent of the auto insurance market. Under the newly approved reduced rates, California policyholders will save an average of about 3.4 percent, or about $50 per policy per year - a total of $34 million. New rates apply to policies written or renewed after June 21, 2009.
Under the newly approved rate cut, 21st Century customers in Los Angeles County will save an average of 4.9 percent, or $80 per year, per policy. 21st Century customers in San Francisco will save an average of $58 per year, and Sacramento policyholders will save an average of $62 each year.
"For over 50 years, 21st Century Insurance has delivered great value and service to California drivers," said Anthony J. DeSantis, President and CEO of 21st Century Insurance. "That's why we are pleased to be able to pass these savings onto our customers in the form of these lower rates - especially during this tough period in our economy."
Since taking office, Commissioner Poizner has approved more than $500 million in auto insurance rate savings for consumers, including a $219 million reduction for State Farm customers, $101 million reduction for AAA of Southern California customers, $41 million reduction for Mercury policyholders, a $100 million reduction for AAA of Northern California customers, and a $65.8 million reduction for GEICO customers. Overall, Commissioner Poizner has approved approximately $2 billion in rate reductions for consumers in all lines of insurance including automobile, homeowners, renters and other insurance products.
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Insurance Commissioner Poizner Announces Alarming Increase In Suspected Auto Insurance Fraud As Economy Worsens

2009-10-22T00:09:00.000-07:00

Commissioner Poizner today announced that recently compiled Department of Insurance statistics show that scam artists may be committing more automobile insurance fraud to cash in on insurance money. The Department of Insurance has seen an increase in suspected auto arson and auto theft fraud referrals last year.
"Many Californians are facing a host of financial challenges in today's economy, but I want to remind everybody that you will only compound your problems if you break the law and commit fraud in search of a quick fix," said Commissioner Poizner. "Department of Insurance investigators have seen an increase in suspected automobile arson and theft fraud cases recently, and our enforcement experts are working hard to crack down on anyone attempting to skirt the law for financial gain."
The Department of Insurance receives referrals of suspected fraud cases from insurance companies, local law enforcement agencies and directly from consumers. CDI enforcement officers carefully examine every case that is brought to the Department's attention.
CDI saw an alarming 25 percent increase in suspected vehicle arson fraud cases in 2008 as compared with referred cases in 2007. (In 2007, CDI received 344 referrals for suspected automobile arson; in 2008, CDI received 451 referrals for suspected automobile arson.) Overall, the Department received almost 300 additional suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007. CDI received approximately 200 more suspected vehicle theft fraud case referrals in 2008 than in 2007.
While the total number of suspected fraud case referrals received by CDI for all automobile fraud categories (including inflated damages, vandalism and hit and run,) has remained relatively constant since 2007, suspected vehicle arson and theft referrals have noticeably increased.
In May, Commissioner Poizner announced that a San Diego husband and wife and two additional individuals were charged with felony insurance fraud for conspiring abandon a 2004 Honda Accord to collect insurance money.
In March, an El Cajon man was arrested and charged with insurance fraud after he allegedly falsely reported that his vehicle was stolen.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Close to 1900 insurance fraud-related arrests have been made by the Department of Insurance's enforcement division since Commissioner Poizner took office in 2007 - more arrests than have been made during any other two year period, under any previous insurance commissioner.

Commissioner Poizner Announces Arrest of Sacramento Area Family for Alleged Auto Insurance Fraud

2009-10-22T00:05:00.000-07:00

SACRAMENTO - Today Insurance Commissioner Steve Poizner announced the August 5 arrests of Amjad Javaid, 53, and his wife, Zarina Javaid, 43, both of West Sacramento, as well as their son, Fahad Javaid, 24, and his wife, Fatima Javaid, 23, both of Sacramento. The group was arrested as the result of an investigation conducted by the Sacramento County Urban Auto Insurance Fraud Task Force (Task Force) into alleged auto insurance fraud. All were booked into the Sacramento County Jail.
All suspects have been charged with conspiracy, presenting a false oral or written statement to the insurance company, and knowingly presenting a false claim to the insurance company. All suspects except Zarina Javaid have also been charged with arson.
The case is being prosecuted by the Sacramento County District Attorney's Office. If convicted, each suspect could face up to five years in prison and/or $10,000 in fines for each count.
"No matter how hard the economic times, people need to remember that insurance fraud is a felony, you will be caught, and you will be prosecuted," said Commissioner Poizner. "This is not a victimless crime since we all pay for it through higher insurance costs."
The Task Force, consisting of investigators from the California Department of Insurance (CDI), the Sacramento County District Attorney's Office, and the California Highway Patrol, has been operating since January, 2001. It targets any form of organized auto insurance fraud including staged theft and vandalism rings, stage auto accidents rings, med-legal fraud mills, and other types of organized auto insurance fraud.
On October 3, 2006, Amjad Javaid filed a claim with The Hartford Insurance Company for the alleged theft of his 2003 Range Rover. The Range Rover was recovered a few hours later in San Jose, California, completely burned. The Javaids all made statements to Hartford that the Range Rover was stolen from in front of their residence, which was in Elk Grove at the time, during the afternoon hours of October 2, 2006, while the entire family was at the mosque.
During the course of the investigation, investigators discovered that the Javaids allegedly made false statements as to their whereabouts on the day of the reported theft. Investigators obtained additional information that suggested the Javaid family may have been experiencing financial difficulties. The insurance company ultimately denied Amjad Javaid's vehicle loss claim; had the company approved the claim, it would have paid approximately $50,000 for the loss.
Last month, Commissioner Poizner announced an increase in the number of referrals for suspected fraud cases CDI receives from insurance companies, local law enforcement agencies and consumers. CDI saw an alarming 31 percent increase in suspected vehicle arson fraud cases in 2008 as compared with referred cases in 2007. (In 2007, CDI received 344 referrals for suspected automobile arson; in 2008, CDI received 451 referrals for suspected automobile arson.) Overall, the Department received almost 300 additional suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007. CDI received approximately 200 more suspected vehicle theft fraud case referrals in 2008 than in 2007.
While the total number of suspected fraud case referrals received by CDI for all automobile fraud categories (including inflated damages, vandalism and hit and run,) has remained relatively constant since 2007, suspected vehicle arson and theft referrals have noticeably increased.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Nearly 1,900 insurance fraud-related arrests have been made by CDI since Commissioner Poizner took office in 2007 - more arrests than have been made during any other two year period, under any previous insurance commissioner.

Insurance Commissioner Poizner Announces Arrest of Diamond Bar Man in $1.4 Million Workers' Comp Fraud Case

2009-10-21T23:59:00.000-07:00

Insurance Commissioner Steve Poizner announced that Joseph Baiden, 56, of Diamond Bar, surrendered yesterday morning to the Los Angeles Superior Court pursuant to an arrest warrant issued for eight counts of workers' compensation insurance premium fraud against State Fund. Baiden is being held on $1.64 million bail.
"It appears that Baiden was living a lavish lifestyle due to ill-gotten gains," said Commissioner Poizner. "But through the work of our investigation and the efforts of our partners, the walls supporting his fraudulent schemes have come crashing down on him."
The arrest came as the result of an investigation by the California Department of Insurance (CDI). Along with the arrest, CDI froze Baiden's bank accounts and seized numerous properties (listed at bottom) throughout the Los Angeles area estimated at $4 million. His primary residence was located in an exclusive, gated hilltop neighborhood in Diamond Bar.
The case is being prosecuted by the Los Angeles County District Attorney's Office. Each count is a felony and, if convicted on all counts, Baiden faces a maximum of 40 years in prison as well as $3.2 million in fines.
In September 2008, CDI received a referral from State Fund alleging that Baiden, doing business as Nurse Connection, Inc., was underreporting his workers' compensation payroll on the quarterly payroll reports. According to the referral, State Fund received an anonymous tip that Baiden had falsified payroll records as well as California and federal tax filings for the years 2001-07. It is alleged that Baiden misrepresented $20 million in Nurse Connection's payroll to conceal the actual risk to the insurance carrier, thereby illegally reducing his workers' compensation insurance premiums. State Fund's estimated loss over this seven-year period is approximately $1.4 million.

Commissioner Poizner Reminds Mandatory Day, Gloria & Station Fire Evacuees that Insurance May Cover Living Expenses

2009-10-21T23:55:00.000-07:00

Insurance Commissioner Steve Poizner reminded residents who have been evacuated due to the Day Fire (Lassen County), Gloria Fire (Monterey County) and Station Fire (Los Angeles County) that they may be eligible for reimbursement for additional living expenses due to mandatory evacuations. Commissioner Poizner also encouraged all Californians to make sure their insurance policies are updated and to conduct a home inventory today.
"Facing the loss of a home due to wildfire is one of the most frightening and stressful experiences someone can go through," said Commissioner Poizner. "I urge everyone who has been evacuated from their home to check their homeowners insurance policies because many cover additional living expenses incurred as a result of a mandatory evacuation. Coming up with extra money for room, board and other additional living costs are the last thing fire evacuees should have to worry about. Check your policy, and if you have any insurance questions, call the Department of Insurance at 800-927-HELP."
The Day Fire, which started on Aug. 27, has burned 1,000 acres and 25 homes are threatened. Mandatory evacuations are underway.
The Gloria Fire, which also started on Aug. 27, has burned 5,000 acres, destroyed one home and an additional 100 homes are threatened.
The Station Fire, which started on Aug. 26, has burned 1,200 acres. More than 600 homes are threatened and 800 homes are subject to mandatory evacuations.
Many residential homeowners insurance policies cover what is known as ALE, or additional living expenses. This permits homeowners to maintain their normal standard of living by covering the increased living expenses incurred as a result of damage caused by the fire or a mandatory evacuation. ALE coverage typically includes extra food costs, increased housing costs, furniture rental, relocation and storage costs, telephone installation and extra transportation costs to and from school or work, after the deductible is reached.

Insurance Commissioner Poizner Announces Alarming Increase in Suspected Auto Insurance Fraud as Economy Worsens

2009-10-21T23:50:00.000-07:00

Commissioner Poizner today announced in Sacramento that recently compiled Department of Insurance statistics show that financially desperate residents and scam artists may be committing more automobile insurance fraud to cash in on insurance money. The Department of Insurance has seen an increase in suspected auto arson and auto theft fraud referrals last year.
"Many Californians are facing a host of financial challenges in today's economy, but I want to remind everybody that you will only compound your problems if you break the law and commit fraud in search of a quick fix," said Commissioner Poizner. "Department of Insurance investigators have seen an increase in suspected automobile arson and theft fraud cases recently, and our enforcement experts are working hard to crack down on anyone attempting to skirt the law for financial gain."
The Department of Insurance receives referrals of suspected fraud cases from insurance companies, local law enforcement agencies and directly from consumers. CDI enforcement officers carefully examine every case that is brought to the Department's attention.
CDI saw an alarming 31 percent increase in suspected vehicle arson fraud cases in 2008 as compared with referred cases in 2007. (In 2007, CDI received 344 referrals for suspected automobile arson; in 2008, CDI received 451 referrals for suspected automobile arson.) Overall, the Department received almost 300 additional suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007. CDI received approximately 200 more suspected vehicle theft fraud case referrals in 2008 than in 2007.
While the total number of suspected fraud case referrals received by CDI for all automobile fraud categories (including inflated damages, vandalism and hit and run,) has remained relatively constant since 2007, suspected vehicle arson and theft referrals have noticeably increased.

Insurance Commissioner Poizner Warns Bay Area Homeowners To Prepare For Wildfires

2009-10-21T23:46:00.000-07:00

Insurance Commissioner Steve Poizner today joined the FireSafe Councils of Northwest California and Farmers Insurance Group of Companies to encourage Bay Area homeowners to prepare their assets for the possibility of a disaster. Commissioner Poizner advised all local homeowners to proactively prepare for fires and other potential disasters by conducting a home inventory and updating their insurance policies.
"The recent, devastating wildfires are a somber reminder of the destruction that all Californians are prone to," said Commissioner Poizner. "Waiting for a fire to erupt before conducting a home inventory and reviewing your insurance policy means you could get burned twice - first by the fire then by trying to recover your losses. These are concrete steps all Californians can take today to protect their homes and belongings."
Wildfires have already begun to rage throughout the state this year, and the worst may still be ahead. Commissioner Poizner urges all homeowners to prepare themselves, and conduct a home inventory to maintain detailed records of their belongings.
Commissioner Poizner offered the following tips for conducting a home inventory:
Using a household digital camera and a Home Inventory Guide from the California Department of Insurance, catalogue your possessions and document their values. Photographs of household goods are especially helpful when an item is difficult to describe on paper, or if a purchase receipt cannot be obtained.
Label photographs with information about each item.
If a video recorder is used, commentary about each item should be included.
A copy of the inventory and supporting documentation, such as receipts and model numbers, should be stored in a safe place, such as a safe-deposit box, work office, or a relative's house.
These records should also include financial documents such as insurance policies and mortgage information.
A free Home Inventory Guide is available at www.insurance.ca.gov.
Contact CDI at 800-927-HELP to obtain consumer information guides about additional insurance products, or for any insurance-related questions.

Insurance Commissioner Poizner Announces Former Insurance Agent from San Diego Pleads Guilty to Felony Theft

2009-10-21T23:42:00.000-07:00

Insurance Commissioner Poizner today announced that San Diego resident, Louise May Batchelor, 55, of San Diego, pled guilty to two felony counts of grand theft on September 4. Sentencing has been set for November 6, 2009 in San Diego Superior Court.
"Insurance agents who play games with their customers' money and trust will ultimately lose," said Commissioner Poizner. "If you decide to break the law, CDI investigative teams will find you and help prosecute you."
According to CDI investigators, Batchelor owned and operated Sunny SoCal Insurance Service and Louise Batchelor Insurance Service in San Diego. Batchelor sold various types of insurance policies, including automobile, property, general liability and workers' compensation to individuals and businesses.
Batchelor previously pled guilty to one felony count of Grand Theft on October 9, 2008. Batchelor was originally arrested in August 2008 and released on bail. The initial complaint alleged Batchelor stole insurance premiums from four business owners and issued bogus insurance certificates. It is estimated that Batchelor received insurance premiums in excess of $8,300 and failed to remit these premiums to the insurance companies.
Batchelor continued to collect premiums from additional victims and failed to place insurance coverage. A new complaint was filed and alleged that Batchelor collected in excess of $20,000 in premiums, including $6,800 she collected while out on bail, from at least four consumers. Because of Batchelor's failure to place coverage, these victims were exposed to extreme financial risk while believing they had insurance.
In October 2008, after the initial criminal case was filed and Batchelor pled guilty, the Department of Insurance revoked her insurance license. Batchelor was barred from working, in any manner, in the insurance industry.
This case was prosecuted by the San Diego County District Attorney's Office.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Close to 1900 insurance fraud-related arrests have been made by the Department of Insurance's enforcement division since Commissioner Poizner took office in 2007 - more arrests than have been made during any other two year period, under any previous insurance commissioner.
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Insurance Commissioner Poizner Announces Former San Diego Resident Sentenced to Jail, Ordered to Pay $100,000 Restitution to Senior Victims

2009-10-21T23:37:00.000-07:00

Insurance Commissioner Steve Poizner announced today that former insurance agent and San Diego County resident Lynn Flanagan, 60, was sentenced to serve 180 days in jail and pay more than $100,000 in restitution for stealing from clients.
"It never pays to steal money from clients," said Commissioner Poizner. "In fact, breaking the law and your customers' trust will only result in a one way ticket to jail, fines and a criminal record. CDI investigators will continue to diligently pursue any criminals who think they are above the law."
According to investigators, between April 2004 and March 2005, Flanagan collected $102,452.89 from four clients, three of whom were senior citizens. Flanagan issued phony insurance documents to the clients, leading them to believe they had legitimate annuities. The clients subsequently discovered the investment company never received their money. A review of bank records showed the funds received from clients were placed in Flanagan's bank account and never remitted to the company.
On April 20, 2007, an arrest warrant was issued for Flanagan. In July 2009, Flanagan was located inMaryland , extradited back to San Diego and booked in county jail. On August 19, 2009, Flanagan pled guilty in San Diego Superior Court to two felonies - grand theft from an elder and residential burglary. Flanagan was sentenced on September 21, 2009.
This case was prosecuted by the San Diego County District Attorney's Office.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Close to 1900 insurance fraud-related arrests have been made by the Department of Insurance's enforcement division since Commissioner Poizner took office in 2007 - more arrests than have been made during any other two year period, under any previous insurance commissioner.
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Commissioner Poizner Announces Final Approval of Pay-As-You-Drive Regulations

2009-10-21T23:30:00.000-07:00

Commissioner Poizner announced today that the final pay-as-you-drive regulations, which will enable insurers to offer consumers another auto insurance option, allowing rates to be based on actual miles driven as opposed to estimated miles driven, have been approved by the Office of Administrative Law and are now in effect. Commissioner Poizner originally proposed pay-as-you-drive regulations in September 2008.
"Pay as you drive is an innovative way to give California motorists financial rewards for driving less, leading to lower-cost auto insurance, less air pollution and a reduced dependence on foreign oil," said Commissioner Poizner. "After a year of hard work by my team at the Department of Insurance and months of working with consumer groups and other valuable parties to fine tune these regulations, these regulations are now in effect and I encourage insurance companies to start offering this pay-as-you-drive option to California consumers."
The pay-as-you-drive program will enable insurers to offer a new option for consumers who choose to take advantage of it. Companies can continue to offer traditional insurance based on estimated mileage. However, now that the regulations are in effect, insurers can also offer a verified mileage program instead of, or in addition to, a traditional estimated mileage program.
Commissioner Poizner originally proposed the pay-as-you-drive regulations last summer to make a new, more mileage-accurate auto insurance option available for consumers. The final regulations can be found by selecting this link.The regulations also allow insurers to offer discounts to drivers who opt to purchase a mileage verification policy. Any auto insurance program, including a pay-as-you-drive program, must be approved by Commissioner Poizner before being placed on the market for consumers to purchase.
If a driver elects to purchase a pay-as-you-drive policy, the insurer would have several options to verify the number of miles driven. These include odometer readings taken by the insurer, the insurer's agent or vendor, auto repair dealers or smog check stations, self-reported odometer readings by the policyholder or a technological device placed in the consumer's vehicle. The final regulations explicitly prohibit insurers from using a technological device to gather vehicle location data for rating purposes. The regulations do not affect the ability to use existing devices such as GM's Onstar system to provide services such as emergency roadside assistance.
The final regulations are attached. The final regulations incorporate changes based on feedback from consumer groups, the insurance industry and other interested parties. The primary changes from the initially proposed regulations to the final regulations include:
Explicit authorization for insurers to offer a price per mile, or prepaid mile option for drivers.
The option for insurers to offer mileage verification policies instead of or in addition to mileage estimation policies.
A requirement that any insurer offering a pay-as-you-drive plan must specify when filing with the department the exact types of mileage verification the insurer will accept.
A requirement that any insurer offering a pay-as-you-drive plan must make all mileage verification methods available equally to all applicants and insured drivers with a mileage verification policy.
The use of location data is still prohibited for most purposes. However, the final regulations clarify that insurers and motor clubs are not prohibited from offering optional devices to drivers to identify the location of the vehicle for purposes of providing emergency road service, theft service, map service or travel assistance service.
Last August, the Environmental Defense Fund estimated that if 30 percent of Californians participate in pay-as-you-drive coverage,California could avoid 55 million tons of CO2 emissions between 2009 and 2020, which is the equivalent of taking 10 million cars off the road. This would save 5.5 billion gallons of gasoline and save Californians $40 billion dollars in car-related expenses. Additionally, the California Air Resources Board has recommended the adoption of pay-as-you-drive as one of the means to meet future climate change gas reduction targets.
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earthquake insurance

2009-10-21T23:14:00.001-07:00

As millions of Californians practiced their emergency plans today during the Great California ShakeOut drill, Insurance Commissioner Steve Poizner urged consumers to prepare for disaster and evaluate their individual needs for earthquake insurance.
"From wildfires to earthquakes, California is home to many devastating natural disasters," said Commissioner Poizner. "Because disaster strikes when we least expect it, it is vital for homeowners to prepare now for the possibility of a catastrophic loss. I urge every Californian to evaluate their individual need for earthquake insurance, and to regularly inventory their belongings to make sure their existing homeowners coverage is adequate."
A 2008 National Association of Insurance Commissioners survey revealed that the majority of American consumers do not have the coverage necessary to protect themselves from specific types of losses that are not reimbursed under standard policies. Based on a data call by the Department of Insurance, almost 90% of homeowners and renters do not have earthquake insurance.
Get important information about preparing for a disaster from the California Department of Insurance website at www.insurance.ca.gov. Or, call our toll-free consumer hotline at 1-800-927-HELP.
Commissioner Poizner provided the following disaster preparedness tips for California homeowners and renters:
Take an inventory of your valuables and belongings. Take photographs or a video of each room. This documentation will provide your insurance company with proof of your belongings and help to process claims more quickly in the event of disaster.
Keep sales receipts and/or canceled checks. Also note the model and serial numbers of the items in your home inventory.
As you acquire more valuables - jewelry, family heirlooms, antiques, art - consider purchasing an additional "floater" or "rider" to your policy to cover these special items. These types of items typically are not covered by a basic homeowners or renter's insurance policy.
Remember to include in your home inventory those items you rarely use (e.g., holiday decorations, sports equipment, tools, etc.).
Store copies of all your insurance policies in a safe location away from your home that is easily accessible in case of disaster. You may want to store your policies and inventory in a waterproof, fireproof box or in a safe, remote location such as a bank safe deposit box. Consider leaving a copy of your inventory with relatives, friends or your insurance provider and store digital pictures in your e-mail or on a website for easy retrieval.
Know what is and is not covered by your insurance policy. You might need additional protection depending on where you live. Make sure your policies are up to date. Contact your insurance provider annually to review and update your insurance policy.
Keep a readily available list of 24-hour contact information for each of your insurance providers.
Find out if your possessions are insured for the actual cash value or the replacement cost. Actual cash value is the amount it would take to repair or replace damage to your home or possessions after depreciation while replacement cost is the amount it would take to repair or replace your home or possessions without deducting for depreciation. Speak with your insurance provider to determine whether purchasing replacement coverage is worth the cost.
Speak with your insurance provider to find out if your policy covers additional living expenses for a temporary residence if you are unable to live in your home due to damage from a disaster.
Appraise your home periodically to make sure your insurance policy reflects home improvements or renovations. Contact your insurance provider to update your policy accordingly.
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23 Tips to Save Money on Auto Insurance

2009-10-21T22:27:00.000-07:00

Tip #1: Earn a Low Mileage Discount
Carpool, take the bus or cut back on trips. If your annual mileage is 10,000 or less, most insurers will offer a discount.
Tip #2: Study Hard
Students with B or better average qualify for a Good Student Discount in high school and college. Provide proof of your GPA annually.
Tip #3: Take a Defensive Driving Course
Many states offer a discount to mature drivers who take a certified defensive driving course. Ask us which companies do.
Tip #4: Drive a Hybrid
Travelers and others offer a hybrid discount. Other fuel-efficient cars often cost less to insure than gas guzzlers. Compare rates before you buy.
Tip #5: Get a Multi-Policy Discount
Insure your home, motorcycle or boat with your auto insurer and get a discount on your car insurance. Ask us for a quote.
Tip #6: Switch to $500 or $1,000 Deductibles
You can save as much as 15-20% of your Comprehensive & Collision premiums, especially for cars less than 5 years old.
Tip #7: Buy Gap Insurance
It costs a little more, but can cover your loan payments, if you have a total loss of a new car that’s worth less than your outstanding balance.
Tip #8: Don't Let Your Policy Lapse
It’s illegal – and you could pay 25% more for a new policy when you’re ready to buy one. Some insurers offer a transfer discount, too.
Tip #9: Protect Your Credit
In many states, missed payments can lower your credit rating, making it more expensive to get car insurance coverage in the future.
Tip #10: Insure Everyone in the Household on One Policy
You’ll earn a multi-car discount, and can be certain there’s coverage for driving each other’s cars.
Tip #11: Don't Speed Excessively
Traffic tickets will increase your rates hundreds of dollars a year. And, tickets are chargeable for the next 3 years.
Tip #12: Insure Your Home and Auto Wisely
Always buy Uninsured Motorist coverage to protect yourself from drivers without insurance. Uninsured accidents are costly.
Tip #13: Drop Comp & Collision Coverage
If your car is 8 to 10 years old, it might be time to “self-insure” it. Consider the trade-offs, as you’ll have to pay to fix it.
Tip #14: Pay The Small Claims Yourself
We know you buy insurance to cover losses, but paying a small claim is often cheaper than getting a rate increase in the future.
Tip #15: Avoid High Theft Cars and Trucks
If your car’s a target for thieves, you’ll pay more for Comprehensive coverage. A higher deductible will help manage costs.
Tip #16: Go Paperless
Some companies offer discounts for using online billing and service options. And, for using E-signature to complete your policy forms online.
Tip #17: Earn an Early Shopping Discount
Compare rates more than 2 weeks before your renewal date and you may get an early shopping rate. Ask us how to qualify.
Tip #18: Get Discounts for Anti-Lock Brakes and Airbags
Safe cars are cheaper to insure. And, most insurers give a discount for safety features and anti-theft devices.
Tip #19: Earn Payment Discounts
Consider paying in full if your company has a discount for it. And, using EFT for payments saves monthly installment fees.
Tip #20: Take a Driver's Training Class
While Driver’s Ed is not required in every state, many companies offer teens a discount for their first few years on the road.
Tip #21: Earn Renewal Discounts
When you shop for new rates, consider whether you’ll qualify for a renewal discount with your current company. You may save more.
Tip #22: Ask About a Homeowner's Discount
Many insurers offer a 5% to 10% homeowners discount, even if you don’t insure your home with them. It’s a sign of stability.
Tip #23: Get Married
Rates for couples are lower. Get quotes from

Black firefighter sues New Haven, Conn., over test

2009-10-17T00:53:00.000-07:00

NEW HAVEN, Conn.—The city of New Haven, Conn., has come under fresh legal fire for its 2003 firemen’s promotional exams, after a black firefighter filed suit asserting that he was denied a promotion because of the way the exam was graded.

In Michael Briscoe vs. City of New Haven filed Thursday, Mr. Briscoe argues that he failed to win a promotion following the 2003 lieutenant exam because the test was weighted 60% for its written portion and 40% for its oral portion. The suit says the oral exam “was a better way to assess candidates’ skills and abilities than the written test and had less disparate impact on African-Americans.”

“The differences between the written test and the oral exam disadvantage a candidate, like the plaintiff, who had diligently studied and learned all the material taught during years of on-the-job experience and extensive in-service training, compared to one who did little until the run-up to the exam but then memorized the facts that were included in the assigned written materials,” the suit states.

Had the oral exam had been weighted to be 70% of the score, which the lawsuit says is the norm for U.S. public agencies, Mr. Briscoe would have ranked fourth instead of No. 24 and would have been eligible for promotion. The suit says two other African-Americans would also have placed among the top 12 taking the examination.

The suit seeks an injunction directing that Mr. Briscoe be considered immediately eligible for promotion to lieutenant or that a “nondiscriminatory selection system” be used for promotions for any vacant lieutenant positions. The suit also seeks unspecified compensation, including back pay.

In June, the U.S. Supreme Court in Frank Ricci et al. vs. John DeStefano et al. ruled in favor of 17 firefighters—16 white and one Hispanic—who sued New Haven because the Connecticut city rejected the 2003 captain and lieutenant’s promotion exams out of fear it would be sued for discrimination by minority candidates.

The Roads are Alive – with the Sound of Trail Bikes

2009-10-16T10:10:00.000-07:00

August 16, 2009 -- More and more bikers, fed up with weaving in and out of traffic at the weekend or getting held up at roundabouts by Sunday drivers, are looking for something more exciting. Lots of them are finding that off-road biking is the way to go. There are cross country courses and events throughout the UK for everyone from off-road novices to trail-hardened riders.

Bikesure offers variety of insurance policies for off-road bikes

Off-road bikes are often less of a risk than road bikes, because of the people who ride themThey are usually experienced riders who are more careful and know what they are doing. Once we realised that, it was simple to arrange cover provided the bike is registered for road use.We also give discounts for being a member of a recognised owner's club, for keeping your off-roader in a garage and for having previous off-road biking experience - among other thingsSo it really pays to get in touch with us before taking out a policy so you can be sure you've taken advantage of all the discounts on offer. But while there are bikes to suit all tastes, speeds and thrust, many off-road bike owners are finding it hard to get insurance once they've got their bikes. A lot of insurance companies see bikes designed for off-road use as very risky. However Bikesure, the specialist motorcycle division of Adrian Flux Insurance Services, has introduced an Enduro Bike Insurance scheme designed to offer cover for all types of off-road bikes while being ridden on the public highway.

"Off-road bikes are often less of a risk than road bikes, because of the people who ride them," explains Robert Balls of Bikesure. "They are usually experienced riders who are more careful and know what they are doing. Once we realised that, it was simple to arrange cover provided the bike is registered for road use."

The Bikesure website, www.bikesure.co.uk, has an online quote system that compares insurance quotes from a panel of underwriters so bikers can choose the one that is best for them and then ring Bikesure to discuss finer details with a member of staff. Alternatively, by clicking the free Callback button, bikers can arrange for Bikesure to ring them, either straightaway or at a convenient time.

Most Bikesure staff are biking fanatics as well as experienced insurance executives, so they are able check out the best deal, applying their own judgement and understanding of the biking scene to get the lowest possible price for the cover that is ideally suited to a biker's individual needs.

Many off-road bikers will also have a main road bike, so Bikesure offers a multi-bike insurance policy with a single low premium to cover all the bikes, saving time, money and paperwork. Other options include free 'ride your mates' bikes' cover on some comprehensive policies, modifications and customisations cover, optional personal injury cover and optional cover for helmets, leathers and protective clothing.

"We also give discounts for being a member of a recognised owner's club, for keeping your off-roader in a garage and for having previous off-road biking experience - among other things," says Rob Balls. "So it really pays to get in touch with us before taking out a policy so you can be sure you've taken advantage of all the discounts on offer."

Compulsory building insurance under fire

2009-10-16T09:56:00.000-07:00

COMPULSORY insurance intended to protect home owners from faulty or incomplete building work may be the worst-performing consumer protection scheme in the country, according to national figures published by the Financial Ombudsman.

Almost half of all claims lodged under compulsory home building warranty insurance were rejected in 2007-08, compared with a national rejection average across all personal and commercial insurance of just 2 per cent.

The Ombudsman's report noted that at 45 per cent, home building insurance had recorded by far the highest rate of rejected claims by its providers, compared with all other products in the insurance market.

Yet it is one of the few types of insurance home owners in all states and territories - with the exception of Queensland and Tasmania - are forced by law to buy, whenever they undertake building or renovation work worth more than $16,000.

The figures back a previous Herald investigation and a Senate inquiry into the home building insurance scheme conducted late last year, which heard evidence from numerous witnesses that insurers had benefitted enormously from the compulsory scheme since it was introduced in 2002.

The scheme has been variously described by consumer and builders' groups as worthless, immoral and "junk insurance". During last year's senate inquiry the Greens senator Christine Milne accused insurers of wildly under-assessing claims to goad consumers into taking their cases through the courts, resulting in lengthy delays in payouts of more than six years in some cases. The Nationals senator Barnaby Joyce suggested the compulsory scheme was "a dog".

The publication of the Ombudsman's report has prompted the Federal Government to concede for the first time that the compulsory insurance may not be delivering the level of consumer protection expected from it.

The Assistant Treasurer, Chris Bowen, said he was concerned at the "underperformance" of the insurance, "particularly when compared to other classes of insurance".

The Senate inquiry's recommendations were being examined, Mr Bowen said, but as the insurance was mandated by state and territory governments, the problem was essentially beyond the Federal Government's realm of responsibility.

The NSW Minister for Fair Trading, Virginia Judge, yesterday ramped up her defence of the insurance, saying "consumers are making claims and claims are being paid".

She said state data showed only 86 out of a total of 1120 claims were fully rejected in NSW in 2007-08.

However, that same data also reveals that only 329 claims were either fully or partially approved, a payout rate of just 30 per cent compared with a level deemed acceptable within the insurance industry of about 80 per cent.

The founder of the Builders Collective, Phil Dwyer, who has been lobbying against the insurance scheme since its inception, said the Ombudsman's report, which contained the first official and most comprehensive data to date, proved the scheme "was the most disgraceful scheme ever to be presented as a consumer protection product".

"No amount of spin by politicians, insurers and their brokers can disguise these statistics."

AIG’s Chartis loses less cover

2009-10-15T23:26:00.000-07:00

15 October, 2009

UBS predications of 30% loss of business proved wrong

AIG’s Chartis will lose at most 22% of its commercial insurance not the 30% predicted when the US government bailed it out, UBS analyst Brian Meredith said, Dow Jones reports. It could lose as little as 17%.

By the end of June, AIG's general insurance division, now known as Chartis, had lost 19% of its $51bn US commercial lines market share. Falls in the first half of 2009 versus the fourth quarter of 2008 were also lower than expected, Meredith said in a note to investors.

FLOOD INSURANCE COVERAGE

2009-10-15T17:37:00.000-07:00

In general, coverage is provided for direct physical loss to the property from a flood which is described as:
A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:
a. Overflow of inland or tidal watersb. Unusual and rapid accumulation or runoff of surface waters from any sourcec. Mudflow - defined as a river of liquid and flowing mud on the surfaces of normally dry land areas such as when earth is carried by a current of water. Landslide, slope failures, or saturated soil moving down a slope are not mudflows.
In general, the policy excludes losses caused by:
Earth movement, even if the earth movement is caused by flood. Examples of excluded earth movement include:
Earthquake;
Landslide;
Land subsidence;
Sinkholes;
Destabilization or movement of land resulting from accumulation of water;
Gradual erosion;
The maximum limits available are:
Residential - $250,000 for the structure and $100,000 for the personal property
Commercial- $500,000 for the structure and $500,000 for the contents

HOW FLOOD INSURANCE WORKS

2009-10-15T17:13:00.000-07:00

As long as a community participates in the NFIP, residents are eligible to purchase flood insurance. Flood insurance is sold to property owners through two mechanisms: 1) through state licensed property and casualty insurance agents and brokers who deal directly with FEMA; and 2) private insurance companies through a program created in 1983 known as "Write Your Own".
Consumers should talk to their insurance agent if they have questions, would like additional information and/or are ready to purchase a flood insurance policy. The policy will take effect 30 days after it is purchased. However, if you buy a house in a designated high-risk area and receive a mortgage loan from a Federally regulated lender, by law, the lender must require the borrower to purchase and regularly renew flood insurance. In this case, the policy will take effect immediately and the borrower does not have to wait 30 days.

PricewaterhouseCoopers Cost Study

2009-10-15T17:08:00.000-07:00

PricewaterhouseCoopers latest cost study finds that 87 cents out of every premium dollar go directly towards paying for medical services. Prepared by PricewaterhouseCoopers (PwC) on behalf of America’s Health Insurance Plans (AHIP), “The Factors Fueling Rising Healthcare Costs 2008” examines the causes of rising health care costs and analyzes how health insurance premium dollars are being spent.

Publication Highlights Health Plan Innovations in Prevention, Wellness

2009-10-15T17:04:00.000-07:00

AHIP’s Innovations in Prevention, Wellness and Risk Reduction monograph highlights innovative initiatives that capture health insurance plans’ commitment to programs that prevent disease and improve the lives of their members and their communities by helping them stay well. The publication features forty company profiles and essays by five noted experts who explore the reasons why the related challenges of prevention, wellness and risk reduction for chronic disease require both innovative and comprehensive responses.

AHIP’s white paper

2009-10-15T16:52:00.000-07:00

AHIP’s white paper, Facing the Challenge of Unhealthy Weight: Recommendations for the Health Care Community, offers several recommendations and examines promising programs that health insurance plans and clinicians have developed in collaboration with community partners to encourage body mass index (BMI) screening and address the obesity epidemic. Recommendations include making routine BMI screening and interpretation a standard clinical practice; connecting BMI screening to evidence-based prevention and treatment options; and building partnerships and disseminating promising practices among health plans, physicians and clinicians, employers and community groups

68% of Catholics surveyed

2009-10-14T19:26:00.000-07:00

Survey of Catholics: Strong Support for Health Reform and Women's Rights," Kathleen Reeves, RH Reality Check: A recent survey by Catholics for Choice found that, "lo and behold, the Catholic hierarchy is not in line with [U.S] Catholics" on the issue of abortion coverage under health care reform, Reeves writes. While many Catholic bishops "have voiced unconditional opposition" to any health reform legislation that does not explicitly exclude coverage for abortion services, 68% of Catholics surveyed "disagree[d] with the idea that Catholics should oppose the entire health care reform plan if it includes coverage for abortions," Reeves says. The survey also found that 21% of Catholics believe abortion should be legal in all cases, half of whom said health insurance plans should cover abortion services "whenever a woman and her doctor decide it is appropriate." She continues, "This is one of the survey's most valuable findings -- that is, you don't have to be 'pro-choice' in any traditional political sense to believe in a woman's right to choose an abortion" or "that insurance should cover this medical procedure." In addition, "even if some Catholics don't believe in abortion and don't believe that any health plan should cover abortion, these Catholics don't necessarily wish to sacrifice health care reform for these beliefs," Reeves writes. She concludes, "Perhaps Catholic bishops should look to their flock for a reminder of how religion does what it does best; that is, to fight suffering, degradation and despair" (Reeves, RH Reality Check, 10/12).

"Roundup: Abortion Clinic Safety Zones in Chicago; Misreading the Pew Poll on Attitude Toward Abortion," Jodi Jacobson, RH Reality Check: In a blog entry, Jacobson highlights recent news relating to abortion rights, including Chicago Mayor Richard Daley's (D) announcement that he will sign an ordinance requiring protesters "to keep a healthy distance from women entering abortion clinics." Daley said, "Everybody has the right to demonstrate and picket," but "to use words and other things to frighten people going in to seek assistance, that is another question." Jacobson also references an American Prospect blog entry by Sarah Posner "argu[ing] that some commentators ... have misread recent polls on abortion," including the recent Pew Research Center poll on abortion attitudes. A commentary in The Politic written by Jonathan McCleod "suggests that U.S. health reform make room for federal funding on abortion care," Jacobson writes. McCleod wrote, "[I]t would be wrong for the government to start dictating the terms of valid insurance coverage,