Insurance Claim of the Week

San Diego CA 1/1/2011 -  Around 2 a.m. the driver of a stolen Toyota Camry lost control and hit a fire hydrant. The force of the water held the back-half of the car in the air for over an hour until crews from the water department shut off the flow.Though suspended in air, the car was unoccupied when police arrived on scene.

Is your car covered for damaged caused by attempted theft? Call Crawford-Butz and talk to an agent today. 314 752-2500

Quick Response

Insurers Moving Quickly in Response to Violent Midwest Weather

May 24, 2011

Auto, home and business insurers have launched a broad response to the recent tornadoes that caused severe loss of life and extensive property damage in Joplin, Mo., Reading, Kan., and Minneapolis, Minn., insurance industry sources say.

More than 68 tornadoes were reported across the Midwest over the weekend.

Jim Whittle, assistant general counsel and chief claims counsel of the American Insurance Association (AIA), said property and casualty insurers are already actively engaged in helping policyholders recover from these natural catastrophes.

The mobilization comes only weeks after insurers traveled to multiple states, most notably Alabama, which were struck by tornadoes in late April, the Insurance Information Institute said.

“The spring of 2011’s tornadoes have been some of the costliest, and deadliest, in U.S. history,” Dr. Robert Hartwig, an economist and president of the I.I.I.

The U.S. generally sees about 1,200 tornadoes in any given year but a preliminary count indicates 1,076 have already touched down nationwide as of May 17, 2011, with 875 of them occurring in April 2011, the National Oceanic and Atmospheric Administration’s (NOAA) National Weather Service reported.

This is already the second deadliest year ever for tornado-related deaths in the U.S. – with about 450 fatalities so far, according to the I.I.I.
Tornadoes killed 747 people in the U.S. in 1925. Tornadoes caused $97.8 billion in insured losses in the U.S. between 1990 and 2009, making these weather events second only to hurricanes ($152.4 billion) over this same time period as the costliest natural disasters.
In the past three years (2008-2010), severe thunderstorms, and the tornadoes they spawned, have caused about $30 billion of that $97.8 billion total, the I.I.I. said.
The April 22-28, 2011 southern state tornadoes caused anywhere from $3.7 billion to $5.5 billion in insured losses, AIR Worldwide, a risk modeling firm, estimated. Risk Management Solutions, another risk modeling company, said the total insured loss figure could climb as high as $6 billion, with the damage so severe in Alabama that the tornadoes could surpass 2004’s Hurricane Ivan as the costliest natural disaster in that state’s history.
In response to the most recent round of storms, insurance companies “are already at work reaching out to policyholders,” AIA’s Whittle said. “Our members are actively communicating with policyholders, even using Facebook and Twitter to post information that will help their customers quickly file claims.”

Policyholders are urged to immediately contact their insurer to report damage and begin the claim filing process.
A list of AIA member companies’ claims hotline numbers may be accessed on AIA’s Web site at: http://www.aiadc.org/AIAdotNET/docHandler.aspx?DocID=285568.

from the Insurance Journal: http://www.insurancejournal.com/news/midwest/2011/05/24/199840.htm?print

Good Friday Twister Spins 7000 Claims Here

Jefferson City, Mo. - The major homeowners and auto insurance companies in Missouri have received nearly 7,000 claims from St. Louis residents with damage from the Good Friday tornado. The companies reported their claims to the Missouri Department of Insurance, which released these noteworthy findings today:

•Total claims: 6,975

•Homeowners insurance claims: 4,490

•Auto insurance claims: 2,245

•Commercial property claims: 240

•Buildings with large or total losses: 137

One insurer reported nearly 2,500 claims, while another reported nearly 1,800. The data comes from insurance companies in Missouri that make up more than 85 percent of the homeowners insurance market.

"Missouri consumers and insurers have acted quickly to assess property damage and get claims filed," said John M. Huff, director of the Missouri Department of Insurance. "Our department will continue to monitor developments to make sure that consumers are receiving their benefits they're due under their insurance policies."

On Saturday, the department posted resources for storm victims on its website, including consumer tips and toll-free claims numbers for 18 of the major insurance companies in Missouri. The site also lists the addresses of mobile claims command units of five companies, which welcome walk-ins. Other companies have command units, but request that policyholders call to set up an appointment at the command center.
Huff says his biggest concern now is unscrupulous contractors who often prey on homeowners during a time of dire need. Advice for dealing with repair companies is also available from the department's online resources page and includes:
•Don't let contractors inspect your home if you're not watching. Some unscrupulous workers will cause damage to drive up the repair cost, and your insurance company will likely not cover the additional damage.

•Once your claim is processed, get estimates from contractors or auto repair shops known to you or recommended by someone you trust. Be suspicious of solicitors who offer to do repairs for you. You can also check a company's complaint history with the Attorney General's Office or Better Business Bureau.

•Don't pay the whole repair bill in advance. Pay in full only when the work is completed according to your agreement.

Consumers can file complaints or ask general questions about insurance by contacting the Missouri Department of Insurance at insurance.mo.gov or calling the Insurance Consumer Hotline at 800-726-7390.

from the MO Dept of Insurance

Pirates and Workman's Comp

Did you know that pirates had developed a workers' compensation system back when New York was still an English colony?

As a company of "entreprenuers", pirates knew how to work together and they maintained a strict code of conduct toward their cohorts. If a pirate was injured or maimed on the job, there was a prior written agreement which compensated him a certain amount of gold depending on the injury.

If he lost and eye or finger a pirate could receive 100 "pieces o' eight". He received 500 pieces if he lost his left arm or right leg, and 600 pieces for the loss of his right arm. This sum was nearly six years of wages. By modern standards these compensations are very similar to what we have now for serious disability.

Pirates could also be assigned to less strenuous chores on the ship while they recovered. This is evidence of the first return-to-work program ever created.

The novel idea of workers' injury compensation migrated to Germany and England but did not make its way to America until the early 1900's. New York was one of four states to pass early mandatory workers' compensation laws which were later overturned in the courts. The New York Court of Appeals ruled that the workers' compensation program was unconstitutional on March 24th, 1911.

Ironically the very next day a factory fire killed 146 workers at the Triangle Shirtwaist Factory in New York.
This event is considered a turning point in the history of workers' compensation in America. The change in America legal climate was no doubt influenced by the horrific aftermath of the Triangle Factory fire. By the end of 1911 there were 9 states which had successfully passed workers' compensation laws.

So 2011 marks the 100th anniversary of workers' compensation in America.

Did you know that Crawford-Butz is well positioned to help with all your Workman's Comp needs. Call us at 314 752-2500.

Source: Insurance Journal online, "Happy 100th Birthday Workers' Compensation: The Great Tradeoff!" Christopher Boggs, 23 March 2011

Insurance Fraud: You pick up the tab in higher premiums

Isn't There Anything That Guy Didn't Do?

He's not just the father of the library and the free press in America but also the founder of the first U.S. insurance company. Benjamin Franklin took the issue of fire safety very seriously, writing about it frequently in his paper, The Pennsylvania Gazette. Seeing a need for a more organized method of dealing with the frequent fires Franklin gathered a group of thirty Philadelphia citizens to take up the challenge. On December 7, 1736 they formed the Union Fire Company, Pennsylvania's first volunteer fire department.

Some years later in 1752, Benjamin Franklin and his fellow firefighters founded "The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire."

Modeled after the "Amicable Contributionship of London." they formed as a mutual insurance company in which policyholders came together to share their risk. The company refused to write houses that its members thought were unsafe or were poorly maintained for fire hazards. They reportedly also refused to issue policies to homes which offered haven to British soldiers.

Policyholders homes were inspected by the insurer and its underwriting standards became the basis for the city's first building codes.
The Philidelphia Contributionship, founded by Ben Franklin, is still in business today and has the distinction of being the nation’s first and oldest property insurance company.

Conveniently Located!

Driver Crashes Into Her Agent's Office

(NewsCore) - A car in Tampa, Fla., struck the insurance office that insured the car in a crash that left a gaping hole in the office's wall, the St. Petersburg Times reported Tuesday.

The collision marked the third time since 2001 that a car has crashed into the Adrian Fernandez Insurance office in downtown Tampa, but Monday night's accident was the first time the building was hit by a vehicle the company insures.

At about 8:30pm ET, Tampa Fire Rescue crews responded to a report that a car had struck the building.

The woman who was driving suffered minor injuries and was taken to a hospital. Her passengers, an adult male and a four-year-old boy, were not injured, police said.

Tampa police are investigating the crash. The car was heavily damaged, Fire Rescue crews said, adding that the insurance company was closed when the accident happened.

Fernandez, who arrived at the scene after the accident, told rescue crews he is the insurance agent for the car.

Source: http://www.myfoxdc.com/dpps/news/local/020111-car-crashes-into-office-insures-it-ncx_11685338

2011 Most Expensive Car to Insure

From the New York Times "Bucks" Blog:

The Mercedes SL65 AMG Roadster is the most expensive 2011 model vehicle to insure, according to a new ranking of average premiums for 2011 models that Insure.com released earlier this month.
The rankings, which the insurance information and shopping site publishes annually, are based on the premium that a 40-year-old man with a good driving record (no speeding tickets or accident claims), a good credit record and a 12-mile commute would pay annually.

The insurance data firm Quadrant Information Services calculated the average premiums for Insure.com by averaging late December 2010 car insurance rates from six large carriers across 10 ZIP codes in each state.

According to the results, the national average annual premium for the Mercedes SL65 AMG roadster is about $3,544, 17 percent higher than the cost to insure the most expensive vehicle in last year’s results, the Porsche 911 Carrera GT2.

What's Your SIgn?

Allstate Insurance has taken a recent look at who's most likely to get in an accident...based on their astrological signs.

Verdict: watch out for Virgos.

People born under this sign were almost seven times more likely to be in a car accident last year when compared to Scorpios, according to Allstate claims data.

Scorpios, on the other hand, known for determination and awareness, were involved in only 1.5% of all accident reports in 2010.

Allstate reports that generally the signs with the least number of accident claims were associated with such traits as compassion, graciousness and resourcefulness. Zodiac signs of those with the highest accidents are described as uncompromising, arrogant and impatient.
 
Here are the signs listed from most accidents to least accidents reported to the company in 2010:

1. Virgo
2. Leo
3. Taurus
4. Pisces
5. Sagittarius
6. Gemini
7. Capricorn
8. Aries
9. Libra
10. Aquarius
11. Cancer
12. Scorpio

But don't expect your car rates to go down anytime soon, Scorpios. The only real difference your birthdate makes is in your age, as rates tend to decrease after 25. Insurers also consider gender, driving record and vehicle make/model as well as other factors in rating a driver's premium.

Whether you're a Virgo, Scorpio or Sagittarius, we may be able to save you money. In St. Louis, call Larry Nolte at 314 881-1940 for competitive quotes. Or use our online rating system, it's there for you 24/7.

Electric Insurance ads Roadside Assistance

In 2010 Electric Insurance raised their auto/home discount to 20%. This coming month they are lowering auto rates in key markets. And now they have added value with 24/7 roadside assistance.

 

Electric has got you covered.

• 24/7/365 country-wide roadside assistance from experienced service providers
• Towing when your vehicle has a mechanical breakdown or when stuck in snow or mud
• Lockout assistance to put you back in the driver's seat
• Jump-starts for dead batteries so you aren't left stranded
• Emergency fuel delivery of up to two gallons of fuel if you run out unexpectedly
• Flat tire changes using your spare to help you get on your way
• Winching/ditch extractions to get you back on the road

Here's how it works

• Emergency Roadside Assistance Services go with the car, so it doesn't matter who is driving
• You'll get a decal for your windshield with the number to call if you need help
• No out-of-pocket expenses unless towing charges exceed your coverage

If you're not already a Crawford-Butz client, call Larry Nolte to see if switching to Electric Insurance makes sense for you: 314 881-1940.

 

Big Ticket

The ticket for the fastest speeder was given to a man going 242 mph in a 75 zone.  The driver, Arthur Chirkinian, was arrested and the car towed while passing through Texas. Apparently he was part of the 2003 Gumball 3000 racing from San Francisco to Miami, and he was driving a Swedish-built Koenigsegg CC8S. Chirkinian and his Kodnigsegg did get back on the road but never finished the race due to the car being impounded in northern Florida.

If you get pulled over going that speed, yes, it IS going to affect your insurance rates.

Bad Dog!

Ever wonder why your insurance company cares if you own a dog?

Dog bite claims against homeowners insurance totaled $412 million in 2009, an increase of 6.4 percent from 2008. In fact, dog bites accounted for more than one-third of all homeowners liability claims paid out, according to the Insurance Information Institute. The average cost of a dog bite claim was $24,840 in 2009, up around $380 from the previous year. Over the six-year period since 2003, the cost of these claims has risen nearly 30 percent.

Because of the rising costs involved in dog bite claims many insurance companies will screen for potentially hazardous breeds. Acceptable risks vary from company to company but among those most difficult to insure are pit bulls, rottweilers, doberman pinscers and chows. If your dog is a breed known to have a higher risk of bite injuries expect to pay more for your insurance.