Bloomberg reported that the auto insurance unit employed around 5,500 workers by the end of September 2007. Earlier, in a statement to its workers, AIG said that it plans to close offices in 12 cities.
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Nineteen insurance companies have set new rates that renewing or new customers will encounter, with 14 enacting average increases between 2 percent and 11 percent, according to the state Insurance Commissioner's Office.
But the increases are much higher for certain drivers. A 28-year-old male with a DUI conviction, an accident or other violations who is insured through Central Mutual Insurance Co. can expect his rate to climb 81 percent.
Drivers insured through 21st Century Insurance Co. will see their rates climb at least 9 percent, on top of a 7.5 percent increase the insurer received in August, when the state still had authority to review and approve insurance rates beforehand.
"We're seeing a lot of companies coming in with very significant swings," Insurance Commissioner John Oxendine said.
The largest increases, between 24.5 percent and 81 percent, would affect about 60,000 drivers.
Six of the companies raising rates, including 21st Century, are owned by American International Group, or AIG, which is in line for a multibillion-dollar government bailout. AIG officials did not respond to a request for comment.
Four companies will reduce their rates by a fraction of a percentage, including State Farm Mutual Automobile Insurance Co., the state's largest insurer with 1.4 million policies. Lincoln General Insurance Co. will decrease rates the most, by 10 percent.
When state lawmakers debated the law, supporters said allowing insurers to set their own rates would spur competition and improve prices for consumers. It passed the House and Senate with only 13 votes against it.
Insurance Commissioner John Oxendine fought the change, which was added to a bill allowing drivers to bolster their coverage against uninsured motorists.
Oxendine said Friday he doubted the law would ever increase competition.
"These companies can come back every couple of months and raise rates if they want to," Oxendine said. "I think the key is going to be what happens over the next year."
Sen. Jeff Chapman, R-Brunswick, voted against the bill. He said he hoped rates would eventually be driven down.
"You obviously don't want to see anybody get taken advantage of," Chapman said.
Innovation Group’s Innovation Auto™ division (www.us.innovation-group.com), the global leader in accident management services for the Property and Casualty industry, announced the addition of Mendota Insurance to its client roster.
Mendota joins Innovation Auto’s growing client base of 40+ carriers, TPA’s, Farm Bureaus and Fortune 1000 fleet organizations.
"Mendota is always seeking ways to improve our customers’ repair experience, while driving key performance indicators such as LAE and cycle time to more favorable levels,” said Brian Ebent, Managing Director of Claims at Mendota Insurance. “Innovation Auto’s nationwide network fits our key policyholder regions very well, and the adjuster portal integrates cleanly into our workflow. We appreciate the fact that Innovation was able to quickly develop a customized program specifically tailored to Mendota’s non-standard auto insurance needs.”
“We are thrilled to add Mendota to our client family and appreciate their confidence in Innovation Group,” said Greg Powers, Chief Marketing Officer, Innovation Group N.A. “Our ongoing focus is to provide innovative and integrated Auto Physical Damage solutions that address the key challenges facing P&C claims executives. We look forward to continuing to extend our leadership position in support of these objectives.”
About Mendota Insurance
Mendota Insurance Company, AM Best B+ rating, has been providing private passenger auto insurance to customers since 1989. Headquartered in Eagan, Minnesota, Mendota is a wholly-owned subsidiary of Kingsway Financial Services, Inc. (NYSE: KFS), one of the fastest growing property & casualty insurers in North America. Mendota and Kingsway are focused on being one of the premier providers of specialty insurance in the United States.
Mendota’s commitment to superior service for our customers and agents alike is what sets us apart from other insurance companies. We provide innovative products to our customers while supporting our independent agents with our proprietary internet-based platform, MendotaMax. This results in greater efficiency for our agent partners and a better service experience for our customers.
About Innovation Group
Innovation Group (LSE:TIG) provides business process outsourcing services and software solutions to insurers and other risk carriers through its international network of offices. With more than 2,500 professionals working across the globe, the Group has an expansive portfolio of proven capabilities for handling the breadth of administrative processes.
Innovation Auto is a division of Innovation Group. In North America specifically, Innovation Auto is a market leader offering a broad range of services to assist the Property & Casualty, fleet, and third party administration markets streamline their business processes and raise operational efficiency while decreasing costs.
“Victimless crime,” is this phrase applicable in insurance scams? With billions of dollars being lost on car insurance fraud alone, this is certainly not a victimless crime. From staged accidents to padding and everything in between; be it a fraudulent act initiated by the policyholder or other individuals involved in the process of claims including middlemen and professionals; scams have really evolved into an organized and complex case linking medical doctors, litigation lawyers, professional mechanics and even our finest policemen.
Auto insurance companies do pay claims made by their policyholders who got mixed up in accidents---whether it legal or otherwise. This is because more often than not, car insurance companies would rather pay out claims immediately than to be dragged and tied in court for years. If the accident reported seems to be legit, usually no further investigations will be made.
This is the reason why insurance fraud has been escalating; same applies to the rate increase for car insurance premiums. What they lost in fraud claims will be passed on to you---to all those who faithfully pay their insurance policies.
Here are some of the schemes utilized to commit car insurance fraud. If one is familiar with such settings, same could be prevented.
Staged Accidents
When another car gets too close for comfort, be vigilant! The driver may be concocting a plan to coerce you to crash into his rear-end. Here’s the set-up. ‘Car X’ (scammer’s vehicle) drives at normal speed, waiting for another car to follow behind. While in transit the driver in ‘car X’ will suddenly hit the brakes causing an evident accident and damage to his car. Presto! An accident! Ka-ching! He’s on his way to cash out his premiums.
Another scenario is when a third party is given the wave or permission to pass. Said individual starts to move his vehicle, then ‘car x’ speeds up. Again, instant collision. Owner of ‘car x’ could easily deny that he gave a signal to the third party.
Self- Imposed Damages
This occurs when the driver wittingly causes more damage than what was incurred during the accident. When no police exists in the crime scene, the higher the possibility that additional damages may take place. Remember, no documentation, no proof.
Padding
In this particular attempt, it is the professionals doing the dirty work. One example is when an attending physician deliberately provides unnecessary treatments to raise the amount that the insurance company must pay. When a doctor flat out miscodes diagnoses, that’s another form of padding. The situation can even be performed by a person pretending to be a doctor. Same applies to lawyers and mechanics trying to make money thru car insurance fraud.
Prevention
One should be vigilant as not be tangled in this intricate web of deception. With regard the staged accidents, one can do nothing but to be careful, very careful. When involved in a collision, make certain to call the police and document the same as not to trigger added damages. As for the professionals, check their credentials first. Ask organizations like the licensing board or the bar association.
Contact:
Carrie Fox
202.255.9214
Carrie.Fox@xprize.org
mailto:Carrie.Fox@xprize.org
source
The South Carolina Insurance News Service said in a news release Nov. 5 that the 2006 rates were about $3 higher than in 2005, but $61 lower than the national average.
South Carolina was in the middle of neighboring states that ranged from a low of $596 in North Carolina to a high of $1,069 in Florida.
The rates in the current study do not include the impact of a state law that took effect Jan. 1, 2007, mandating increased minimum coverage for South Carolina drivers.
sourceThe tour includes visits to:
October 28th -
Colts Neck High School
Graeme Preston Foundation, Freehold, NJ
October 29th -
Northfield Community Middle School, Northfield, NJ
Community Forum/Presentation, Berkeley Municipal Building, Bayville,
NJ
October 31st -
Hamilton/Yardville
November 1st -
Anthony Henry Memorial Scholarship Dinner, Yardville
The tour includes visits to:
October 28th -
Colts Neck High School
Graeme Preston Foundation, Freehold, NJ
October 29th -
Northfield Community Middle School, Northfield, NJ
Community Forum/Presentation, Berkeley Municipal Building, Bayville,
NJ
October 31st -
Hamilton/Yardville
November 1st -
Anthony Henry Memorial Scholarship Dinner, Yardville
