Tuesday, March 31, 2009

Workmen’s Auto Insurance Company Does Not Credit Score

LOS ANGELES - (Business Wire) In response to Florida Chief Financial Officer Alex Sink’s March 19, 2009 press conference opposing the use of credit scoring in automobile insurance, Workmen’s Auto Insurance Company is reminding its Florida policyholders and agents that it has never used an individual’s credit when considering their eligibility or determining their insurance premium.

“Your credit is your business, not ours,” stated President and CEO Nicholas J. Lannutti. “Given the current state of the economy we would like to reassure our policyholders that the price they pay for insurance with Workmen’s Auto is - and will continue to be – based on factors such as their driving record, where they live and the coverages they desire, and not on their credit score.”

Workmen’s Auto Insurance Company has written automobile insurance in Florida for the past 15 years, working closely with local Florida independent agencies to provide coverage tailored to the specific needs of each policyholder. The company writes coverage ranging from the basic minimum to full coverage for families with multiple drivers and higher value vehicles, offering a wide variety of discounts that reward safe driving, driver education, and owning vehicles equipped with certain safety equipment, without the use of credit scoring.

Workmen’s Auto has been in business since 1949 and is active in 10 states, from Washington to Florida. During these difficult economic times, having dependably priced auto insurance from a strong and secure insurance company is necessary to protect yourself and those around you. Local independent insurance agents are a great resource to help consumers find stable insurance solutions that are not dependent on your credit.

Workmen’s Auto Insurance Company
John Crispi
Phone: 213-747-6492
Fax: 213-747-4699
marketing@waic.com
http://www.waic.com

source

Monday, March 30, 2009

'No-fault' benefit plan 'a disaster'

The cost of insuring aches, pains and broken bones soared 23 per cent in Ontario last year, setting the stage for higher auto premiums unless coverage limits are changed soon.

"It's a disaster," says Joel Baker, president of MSA Research Inc., which will post industry results on its website today.

Baker says Ontario's no-fault accident benefits are costing 24 per cent more than premiums collected, which is worse than in 2002 when insurers' profits fell to record lows and prompted double-digit rate increases.

The new Liberal government reacted by imposing a temporary rate freeze, then it capped therapists' fees and the number of rehabilitation treatments and eliminated designated assessment centres.

Since then, premium rate increases have been modest – 5.6 per cent last year after declines from 2004 to 2006. While the average premium in January of $1,343 per vehicle was down from $1,493 in 2003, pressure for big increases is mounting.

Actuary Barb Addie of Baron Insurance Services Inc. predicts an average increase of 15 to 20 per cent if the government does not move to control costs.

"In Ontario, auto insurance already takes 5 per cent of disposable income," she says. "It is a very expensive product and I am not certain why anyone hurt in an auto accident should be treated better than someone hurt at work."

Don Forgeron, Ontario vice-president of the Insurance Bureau of Canada, says the government "can confer a benefit on the people (by addressing the rising cost of accident benefit claims) and it will cost them absolutely nothing."

Property insurers regulated by the federal government saw profits cut in half last year to $2.3 billion. Their cost of claims rose faster than premiums and investment income fell by $1 billion.

While those insurers as a group earned 5 per cent on shareholders' equity, several of the biggest auto insurers suffered losses.

Economical Mutual Insurance Co. of Waterloo led the industry with a net loss of $102.4 million. President Noel Walpole says price competition made it difficult to raise premiums as fast as costs have risen.

"We have been taking rate increases and monitoring the results," he says. "If the inflationary trends continue, we will probably be looking for additional rate increases this year."

State Farm Mutual Automobile Insurance Co., which earns most of its revenue in Ontario, lost $66 million and paid $1.69 for every dollar in premiums it collected for accident benefits.

"We need to get control of this product," says president Robert Cooke. "It is far too rich and is being used and abused. Our average cost for an accident benefit claim has risen from $22,000 in 2004 to $44,000 a case."

Cooke says regulations do not allow insurers enough time to assess the validity of claims for treatments, housekeeping and attendant care for minor injuries. Legal representatives then request 60 cents worth of assessments for every dollar spent on treatment.

Allstate Insurance Co. of Canada lost $44 million, Kingsway General Insurance Co. $35 million and York Fire and Casualty Insurance Co. $25 million.

Kathy Bardswick, president of The Co-operators Group in Guelph, and George Cooke, president of Dominion of Canada General Insurance Co., say Ontario should let motorists buy a stripped-down form of accident benefit coverage to save money.

Auto insurance is not the only problem area. Insurers, they say, are seeing more water damage claims due to sewer backups.

source

Sunday, March 29, 2009

Allstate Recruiters Target Texans Tagged by Downsizing

Recruiting Campaign Aims to Open 150 New Texas Offices in '09

IRVING, Texas, March 24 /PRNewswire-FirstCall/ -- Downsizing decisions by companies across Texas are fueling Allstate Insurance Company's agency growth strategy in the state. Allstate has launched an aggressive recruitment campaign targeting professionals caught in the recent waves of lay offs and pay cuts. The company plans to sign-on at least 150 new agency owners across the Lone Star state by the end of 2009.

"We see a significant opportunity in the current economy to attract mid-career, mid-level managers to own and operate their own business and represent Allstate in Texas," said Phil Lawson, Allstate field vice president for Texas. "We're working with outplacement services and through our own recruiters to find professionals with financial or sales backgrounds."

Allstate says its recruiters are particularly interested in downsized professionals who received a severance package. Part of the reason--candidates need $50,000 in liquid capital to open a new Allstate agency. With some potential candidates hesitating because of the money needed to open an agency, recruiters are focusing on the stability of investing in the Allstate brand.

"These professionals have the resources and the expertise to hit the ground running - starting over as their own boss in control of their own destiny," said Lawson.

Allstate says its agency expansion plans in Texas are part of an overall growth strategy that calls for aggressively growing the provider's auto insurance presence statewide and staking a stronger claim in items like boats, recreational all-terrain-vehicles and motorcycles. Allstate is currently Texas' second largest auto insurer with almost 1.7 million covered cars and trucks in the state. The company is also beefing up the portfolio its agents have to offer with seven product launches in Texas in the last 18 months.

"More blue signs mean more touch points with more Texans," Lawson said.

Interested candidates can apply to become an Allstate agent by logging on to allstate.com or by calling 1-877-711-1006.

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate is reinventing protection and retirement to help individuals in approximately 17 million households protect what they have today and better prepare for tomorrow. Customers can access Allstate products and services such as auto insurance and homeowners insurance through approximately 14,700 exclusive Allstate agencies and financial representatives in the U.S. and Canada, or in select states at allstate.com and 1-800 Allstate(R). Encompass(R) Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Customers can also access information about Allstate Financial Group products and services at myallstatefinancial.com.


SOURCE Allstate Insurance Company

Saturday, March 28, 2009

Liberty Mutual To Pay More Than $900,000 For State Law Violations

Liberty Mutual companies are paying $928,042 in fines and restitution for overcharging customers, settling claims improperly, and other violations of state law, the Connecticut Insurance Department said Tuesday.

Fines for violations totaled $296,000. Liberty Mutual was also ordered to pay $632,042 in restitution. Most of it -- $628,875 -- was returned to 3,595 policyholders who were overcharged for premiums on auto insurance. The remaining restitution went to seven people because surcharges were wrongly levied on their policies, the department said.

In some cases, the company's mistakes resulted in undercharging customers.

"It is imperative that consumers are treated fairly," said Insurance Commissioner Thomas Sullivan. "I am pleased that my staff was able to identify these violations, work with the company to provide restitution, and make a difference for policyholders."

Glenn Greenberg, a spokesman for Boston-based Liberty Mutual, said the company regrets the errors and that "This is not systemic of any improper and irresponsible behavior, and the errors cited have been rectified."

Greenberg said the company identified many of the errors itself and reported them to the Insurance Department in 2006 and 2007.

The department's order results from a routine "market conduct" exam by the department, which checked how Liberty Mutual was treating its customers and following laws during 2006.

Regulators say Liberty Mutual discovered an error in 2006 in the way its "safe driver" discount was programmed into its computer system, informed the department, and took corrective action.

In mid-2007, the company discovered a problem with how a separate "preferred class" discount was applied, resulting in overcharges. But the company didn't inform the Insurance Department until January 2008 when the exam was under way, the agency said.

Another problem involved how Liberty Mutual figured payments on liability claims for damage to vehicles. In some cases, the company apportioned blame to both drivers when only one was at fault.

The company felt its staff relied too much on a software program to assess negligence, and should have given more consideration to police reports, witness statements and "actual facts of the loss," the department said.

The department also found violations in the company's licensing and appointment of agents, and licensing of adjusters and appraisers.

source

Friday, March 27, 2009

Esurance Exploring Massachusetts Personal Auto Market

Esurance, a San Francisco-based personal auto insurance direct writer, has taken preliminary steps to obtain a license to sell auto insurance in Massachusetts -- although the company says it has no immediate plans to enter the Bay State market.

According to the state Division of Insurance, Esurance has filed papers to obtain a foreign company license. However the company has not filed a rate plan, which would be the key step in setting up a sales operation in the state.

Esurance relies on its Web site as its primary tool for selling auto insurance direct to consumers.

In an e-mail to Insurance Journal, Esurance said it has no immediate plans to enter the state's personal auto market.

"We're not currently planning on selling products in (Massachusetts)," said Spokeswoman Kristin Bewe. "We regularly explore states where we're not writing business, and often take the steps to get licensed in them."

Bewe said Esurance, which writes in 30 states, also holds company licenses in other states where it does not write insurance.

Esurance is a subsidiary of Bermuda-domiciled White Mountains Insurance Group Ltd., which is also a corporate parent of Canton,. Massachusetts-headquartered OneBeacon Insurance Group.

It's unusual for an insurer to take the steps to obtain a company license in Massachusetts without submitting a rate filing. "That would be rare," said Jason Lefferts, spokesman for the Division of Insurance.

One notable exception: Geico, another Web-based direct writer, which until last week had held a company license in Massachusetts for years without making a rate filing.

Last week, Geico announced plans to enter the state's auto insurance market. It's expected the company could begin selling in Massachusetts by May.

The entry of Geico into the state's insurance market comes nearly a year to the day after the Division of Insurance launched sweeping reform of the Bay State's auto insurance system, eliminating the old structure by which the state set all insurance rates. That system has been replaced with a "managed competition" regime, under which insurers set their own rates within guidelines established by regulators.

Frank Mancini, head of Massachusetts Association of Insurance Agents, the state's trade group for agents, said he was unsurprised by the announcement of Geico's entry, but was unaware of any plans by Esurance to enter the state.

"We expected that they (Geico) would be here at some point, and we're going to have to see what the reaction is," he said.

Mancini said he was also unsurprised that the biggest entrants into the state's personal auto market -- Progressive last year, and now Geico -- are direct writers which sell primarily through Web sites.

"You push a button someplace and now what wasn't available before is now," he said. "There's very little investment in launching a Web-only operation in a state. But it brings no jobs and no investment to the state's economy. They hurt jobs in the state."

source

Thursday, March 26, 2009

Find the Best Car Quotes with Nevada Car Insurance

24.03.2009 17:46:37 Auto insurance expenditures in the state of Nevada are affected by the strength of the economy and other factors including the insurance coverage amount, your driving record, your age, the urban population, traffic density, and per-capita income, according to the experts of nevadacarinsurancepro.com.

(live-PR.com) - Brandon, March 2009 - “According to the Insurance Information Institute (whose mission is to inform the public about what insurance is and how it works) the AVERAGE expenditure for Nevada Auto Insurance in the state of Nevada in 2005 (the last year of available data) was $983. With over 1.6 million insured cars in the state of Nevada you can
quickly see how important it is to make sure you have adequate Nevada Auto Insurance coverage!” says Mr. Joel Ohman of nevadacarinsurancepro.com

He added that, “Auto insurance in Nevada law requires minimum coverage in the amount of $15,000 for bodily injury or death of one person in an accident, $30,000 for bodily injury or death of two or more persons in an accident, and $10,000 for injury or damage to the property of others. This coverage is generally described as 15/30/10. When you have liability coverage, your Nevada Auto Insurance company will pay for the victim’s damages up to your policy limits. If you are found to be without Nevada Automobile Insurance by a law enforcement officer, the penalty will be enforced by a court of jurisdiction and is generally more severe. If you do not carry Nevada Automobile Insurance, and your motor vehicle gets into an accident, your registration and driver’s license may be revoked. You may also be required to have an insurance company certify that you have auto insurance. Most Nevada Automobile Insurance companies will charge you an additional fee for this certification (commonly referred to as a SR-22) that you will have to maintain for a three-year period.”

About nevadacarinsurancepro.com

Nevadacarinsurancepro.com is the best place to look for information about Nevada Automobile Insurance. With the help of nevadacarinsurancepro.com, you will be able to get Nevada Automobile Insurance quotes with a few mouse clicks.

For more information, visit www.nevadacarinsurancepro.com

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Wednesday, March 25, 2009

Cheapcarinsurance.net Survives Internet Insurance Boom in Florida

ORLANDO, FL -- (Marketwire) -- 03/24/09 -- Since the dawn of the Internet many small business owners have been forced to adapt or be left behind. This is the case with independent insurance agents in Florida. Up until the early 2000s it was fairly easy to open your own car insurance office on the main street of any medium or large sized city. People were very comfortable with their hometown insurance office of choice. That all changed with the advent of the Internet.

Anthony King, owner of Cheapcarinsurance.net, knows first hand what the transition has been like. "When I was a teenager in the early 90s my mother ran an auto insurance office in South Florida. I was young but definitely involved in the local marketing of the business. My father would have me go around and put flyers on everyone's doors in the city. The business flourished with the locals until big companies like Geico and Progressive came along. Gradually my mother's business slowed until people without the Internet or people who didn't know about the big companies were the only ones coming into her office. She eventually shut down the office when profits were just not enough."

While his family had to find other ways of making up for the loss in income Anthony took this experience into adulthood, always wondering what else could have been done to save the business. He eventually started learning about internet marketing and how the big insurance companies were running their businesses. In 2007 he launched Cheap Car Insurance with the lessons learned from both offline and online business experiences.

Independent insurance agents now have a fighting chance with Anthony's new approach. "I still pass out flyers but now they're virtual flyers," Anthony says with a smile. "Also, I still work with agents but on a much larger scale now. Someone comes to the site and fills out a quote form. This data is then sent to agents in the shopper's state. At that time the shopper can choose who is giving them the better quote. It works out best for the agents and the shopper."

If the Internet hurt independent insurance agents then the recent recession has certainly not helped. "The competition among agents is definitely more fierce right now," says Anthony. "This is working out very well for the consumer. It's also working out well for the agents that are not greedy and offer the best service. It feels great to have adapted to the very thing that brought down my mother's business."

Anthony's site not only offers quotes but also many tips on how to get cheap car insurance through various discounts that many people are unaware of.

Anthony King
Cheapcarinsurance.net
(866)606-5129

source