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

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'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.

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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

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

By DIANE LEVICK |The Hartford Courant

4:39 PM EDT, March 24, 2009

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.

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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."

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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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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

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Study: More Californians lack auto insurance but could get help

The Insurance Research Council found 18% of California drivers lack auto coverage and concluded the economy is behind the dismal numbers. In Ventura County, 1,400 residents inquired about the state's Low Cost Automobile Insurance Program, but only 63 signed up in 2007 and 92 in 2008, according to state Insurance Commissioner Steve Poizner's office. "We are going to ramp up this low-cost auto program and expand the number of agents and brokers selling it," Poizner said. Ventura County Star (Calif.) (free registration) (03/22)

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Delphi retirees fight proposed cuts

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- A group of more than 1,000 Delphi salaried retirees has hired a San Francisco law firm to try to block the Troy-based auto supplier from cancelling their health care and life insurance benefits.

The ad-hoc group, the Delphi Salaried Retiree Association, has hired the law firm of Farella, Braun & Martel LLP, and will file a formal objection to Delphi's plan later today, the deadline for objections to be filed. U.S. Bankruptcy Judge Robert Drain will hear the request by Delphi on Feb. 24.

"The retirees have accomplished an incredible amount of progress in only one week," said Den Black, a member of the Delphi Salaried Retirees Association. "It is clear that Delphi is attempting to high-jack the retirees by robbing them of benefits that were earned over decades and promised at the time of their retirement. It is also clear that Delphi is attempting to fake the court by rushing for a motion that will have a traumatic impact on a multiple of 15,000 families."

On Friday, another law firm representing Delphi retirees, Stahl, Cowen Crowley LLC, filed an objection to Delphi's plan. Those retirees point to employee benefit records that suggest the benefits were permanent. A 2001 letter to retirees from Delphi said the life insurance "will remain in effect for the rest of your life and is provided by Delphi at no cost to you."

The retirees argue that Delphi wants to deny retirees "a voice to at least defend themselves against this onslaught."

On Feb. 4, the company sought permission to cancel retiree health benefits for current and future salaried retirees, a move that it says would save the company $200 million from 2009 through 2011, or about $70 million a year.

The auto parts supplier also sought to end post-retirement basic life insurance benefits for current and future retirees.

The moves would allow Delphi to reduce its balance sheet liabilities by nearly $1.2 billion. About 15,000 salaried retirees with medical and insurance benefits would lose coverage. The company wants to end coverage "as soon as (it is able) after March 31."

The company also moved to cancel all retiree health reimbursement accounts for Medicare-eligible salaried retirees and terminate the Medicare Part B special benefit for current and future salaried retirees and their surviving spouses.

"This is a decision that was as tough for us to make as it was for employees to receive. It's a tough, hard decision," said Delphi spokesman Lindsey Williams earlier this month, noting the declining auto market and worsening economy prompted the move. "It wasn't one we wanted to do."

Delphi has about 10,000 salaried employees.

For workers hired after 1999, Delphi doesn't pay retiree health benefits, but puts 1 percent of an employee's base pay into a retirement savings plan. That contribution would be canceled if the court granted permission.

Retirees would be allowed to keep coverage if they paid for it, Delphi said.

Delphi, which has been under bankruptcy protection since 2005, has been struggling to emerge in recent months in the face of tight credit. Delphi had planned to continue the programs until it ran into difficulty raising enough funds to emerge from bankruptcy. The company noted that auto sales have declined dramatically.

Delphi's "reasonable business judgment no longer permits them to maintain discretionary benefit programs ... that would cost hundreds of millions of dollars," the company said in a court filing. "Delphi has been working and continues to work closely with its advisors and stakeholders to re-evaluate its business plan and implement cash-conservation measures wherever it can."

Delphi said in its filing that it plans to revise its bankruptcy plan and file it by the end of the month as it struggles to shore up its cash. It asked the court to approve a deal to accelerate a $100 million payment from GM into the first quarter from the second quarter. It also disclosed that the value of the company may now be less than what it owes banks and investors funding its bankruptcy case.

This is the latest benefit cut sought by Delphi. In September, Delphi won permission to freeze its pension plans.

Delphi's hourly manufacturing cost has been cut to about $27 an hour this year from $73 an hour in 2005. Delphi rocked the auto industry when it filed for Chapter 11 bankruptcy protection on Oct. 8, 2005. Since then, it has lost more than $12 billion, closed 21 of its 29 U.S. factories, and cut its hourly work force nearly 50 percent and its salaried work force almost 40 percent.

The Delphi retirees have started a website at www.delphisalariedretirees.org.

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PCI testifies against 'anti-consumer' auto insurance bills

HARTFORD, Conn. – The Property Casualty Insurers Association of America (PCI) testified against several auto insurance bills it claims are "anti consumer" that are being considered by the Connecticut Insurance and Real Estate Committee. PCI also is supporting legislation that extends the state’s flex rating law.

The following is a statement by Paul Magaril, regional manager and counsel for PCI:

“The Property Casualty Insurers Association of America is urging the Connecticut Insurance and Real Estate Committee to reject HB 6444, which would prohibit the use of credit information and limit the use of territorial rating. We also oppose HB 6446, which would place additional limitations on insurers who offer guarantees on auto body repairs completed in shops recommended by insurers. These bills would have significant anti-consumer consequences and harm the state’s automobile insurance market. We are also seeking to amend HB 6450, which changes how the value of a totaled vehicle is determined. However, we strongly support HB 6280, which extends the state’s flex-rating law affecting personal lines until July 1, 2011.

“The net effect of HB 6444 would be to make insurance underwriting and rating less accurate and result in lower risk consumers subsidizing higher risk consumers. Consumers that pose higher risk should pay more for insurance. This bill turns that notion on its head. Both credit information and the use of geographic location have been proven to be highly accurate predictors of risk. By enacting legislation that eliminates or severely limits the use of these factors, the state is in the position of picking winners and losers regarding auto insurance. Based on this legislation, the majority of drivers in Connecticut would be losers. The big winners would be those who file the most claims and have the highest losses. That is not good public policy.

“Through HB 6446 some auto body repair shops are attempting to limit an insurer’s ability to offer an important and very popular benefit to consumers – a lifetime warranty on the repair work. While an auto repair shop may guarantee their work, this is of little benefit to a consumer who has moved or is traveling. The warranty offered by insurers extends beyond the particular direct repair facility used by the consumer and can be used at any such facility in the country. How can a prohibition or limitation on an insurer’s ability to reduce premiums, lower deductibles, or offer a lifetime warranty be considered to be in the best interests of the consumers? Only one group would benefit from this bill – auto repair shops that would be protected from competition. One group would be harmed – consumers who would actually be denied important cost-saving benefits for exercising their choice of repair facilities. No other state in the country has enacted a law that limits the benefits that an insurer can offer to consumers in this way”.

“On HB 6450, we could support the bill with some amendments. When determining the fair market value of a “total loss” automobile in Connecticut, insurers use an average of retail values given by the National Automobile Dealers Association (NADA) used car guide and one other source that has been approved by the commissioner. This bill would drop the requirement to use the NADA guide, instead requiring insurers to use the higher of two sources that have been approved by the commissioner. While the proposed change could allow insurers more flexibility in their choice of valuation methods, it still requires duplication of efforts and resources, making the total loss process more expensive and more time consuming. We believe this bill provides legislators an opportunity to provide more efficiency, flexibility and clarity in the claim handling process of totaled vehicles. We urge the committee to take that opportunity and to adopt amendments that would simply allow insurers to choose one of these approved methods for determining the value of a totaled vehicle.

“PCI supports HB 6280, which allows a law that is working well for consumers to continue. Connecticut’s flex-rating law went into effect on July 1, 2006 and is scheduled to sunset on July 1, 2009. Under the law, insurance companies in Connecticut are allowed to implement personal auto and homeowners’ insurance rate changes within a plus-or-minus 6 percent band without waiting for regulatory approval. Analysis of the latest information available shows that the law is achieving what lawmakers intended by moderating premium costs and contributing to a vibrant, competitive market.”

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National Bank Insurance Joins the Kanetix Auto Insurance Quote Comparison Service

MONTREAL, QUEBEC - TSX:NA - National Bank Insurance is pleased to join the Kanetix® auto insurance quote comparison service, available online at www.kanetix.ca. National Bank Insurance products will be identified under the name InnovAssur.

"Kanetix is pleased to add National Bank Insurance to its insurance quote website, the company offers an excellent insurance product in the Quebec market that rewards drivers who have a good driving record," said George Small, Co-founder of Kanetix. "National Bank Insurance is a natural fit for Kanetix as it complements our commitment to help insurance consumers find competitive rates. We're excited about the opportunity to introduce our shoppers to the National Bank Insurance auto insurance offering."

"It's a win-win situation for both Kanetix and National Bank Insurance. The Kanetix auto insurance quote comparison service has become more compelling for Quebec consumers as it offers them even more choices, while National Bank Insurance will have access to the thousands of Quebec consumers who visit Kanetix on a regular basis to comparison shop for their insurance needs," said Danielle Aubin, Vice-President - Operations of National Bank Insurance.

The free Kanetix service offers Quebec drivers an opportunity to compare insurance quotes from a variety of car insurers, including National Bank Insurance. By visiting www.kanetix.ca, users can follow four simple steps and, in just a few minutes, compare multiple insurance quotes in chart format.

About Kanetix

Launched in October 1999, Kanetix is Canada's leading national, online insurance marketplace. The Kanetix shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the Kanetix website to compare insurance quotes from a variety of Canadian insurance companies. Kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.

About National Bank of Canada

National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has close to $129 billion in assets and, together with its subsidiaries, employs 17,146 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX: NA). For more information, visit the Bank's website at www.nbc.ca.

The telephone numbers provided below are for the exclusive use of journalists and other media representatives.

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State Farm Lowers Georgia Rates

If you’re a State Farm customer in Georgia, you’ll have some extra spending money next month. On March 9, the insurance company is lowering your auto insurance rates.

Here’s the tip of the day:

Effective March 9, State Farm Mutual Automobile Insurance Company is lowering its overall auto insurance rate level in Georgia by an average of 1.5 percent. This represents an annual savings of $16.2 million for Georgia customers. After this change is implemented, State Farm’s overall auto insurance rate level in Georgia will be 12.2 percent lower than it was five years ago, according to a release.

Using claim experience over the past several years, State Farm projects what the number and cost of future claims will be. Rates are set in accordance with that information in an effort to meet the promises made to policyholders.

According to State Farm Senior Vice President Tim McFadden, “As a mutual company owned by our policyholders, less than expected claims experience enabled State Farm to reduce rates. Given the current economic situation, we believe this announcement is especially welcome news for our policyholders.”

Premiums for collision and comprehensive coverage are decreasing for most customers. Comprehensive coverage pays for losses from such perils as theft, storm damage, fire, vandalism and glass breakage. The price of liability and medical payments coverage is not impacted by this rate change.

Overall premium changes for individual motorists will vary depending on factors such as the coverage they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.

About one in every four cars in Georgia is insured by State Farm.

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National Bank Insurance Joins the Kanetix Auto Insurance Quote Comparison Service

MONTREAL, QUEBEC--(Marketwire - Feb. 19, 2009) - TSX:NA - National Bank Insurance is pleased to join the Kanetix^® auto insurance quote comparison service, available online at www.kanetix.ca. National Bank Insurance products will be identified under the name InnovAssur.

"Kanetix is pleased to add National Bank Insurance to its insurance quote website, the company offers an excellent insurance product in the Quebec market that rewards drivers who have a good driving record," said George Small, Co-founder of Kanetix. "National Bank Insurance is a natural fit for Kanetix as it complements our commitment to help insurance consumers find competitive rates. We're excited about the opportunity to introduce our shoppers to the National Bank Insurance auto insurance offering."

"It's a win-win situation for both Kanetix and National Bank Insurance. The Kanetix auto insurance quote comparison service has become more compelling for Quebec consumers as it offers them even more choices, while National Bank Insurance will have access to the thousands of Quebec consumers who visit Kanetix on a regular basis to comparison shop for their insurance needs," said Danielle Aubin, Vice-President - Operations of National Bank Insurance.

The free Kanetix service offers Quebec drivers an opportunity to compare insurance quotes from a variety of car insurers, including National Bank Insurance. By visiting www.kanetix.ca, users can follow four simple steps and, in just a few minutes, compare multiple insurance quotes in chart format.

About Kanetix

Launched in October 1999, Kanetix is Canada's leading national, online insurance marketplace. The Kanetix shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the Kanetix website to compare insurance quotes from a variety of Canadian insurance companies. Kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.

About National Bank of Canada

National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has close to $129 billion in assets and, together with its subsidiaries, employs 17,146 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX:NA). For more information, visit the Bank's website at www.nbc.ca.

The telephone numbers provided below are for the exclusive use of journalists and other media representatives.

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Laughing your way to Cheaper Auto Insurance Rates

20.02.2009 12:15:24 The online defensive driving course for Point and Insurance Reduction courses are many. However, finding an interactive and fun defensive driving course is less. The learning process of the interactive edutainment traffic school is more fun and interesting. With the effective edutainment curriculum, reducing future accidents and moving violations are possible

It sounds ludicrous at first, but so did Earth Shoes, car phones and kiwi as a garnish.

In keeping with its commitment of promoting driver safety and providing the state’s motorists with enhanced customer conveniences, New Jersey Motor Vehicle Commission (MVC) approved Improv Traffic School to offer online comedy-based defensive driving and Point and Insurance Reduction
courses for New Jersey drivers.

Improv had gained its fame in the driver training field in the early 80’s, when its founder Gary Alexander had partnered with the famous Improv Comedy Club to create an interactive and fun edutainment traffic school and defensive driving programs for Los Angeles motorists.

Based on a simple notion that when you enjoy the learning process you simply learn more, Alexander has grown Improv to one of the largest and most respected defensive driving schools in the Country. Since then more than a million students have taken Improv’s classes in both classroom and online settings for ticket dismissal, insurance discounts and court ordered defensive driving . Improv’s teaching methodology has been backed by a number of studies showing that its edutainment curriculum is effective in reducing future crashes and moving violations.

“I can’t guarantee none-stop laughs”, Gary Alexander admits, “I will shoot for less painful and simple”.

New Jersey Motorists who successfully complete Improv’s online defensive driving course are eligible to have a two-point reduction on their driver record and qualify for a mandatory, three-year insurance discount.

The Improv’ s online course is available to New Jersey motorists at www.MyImprov.com

The online course consists of 10 simple modules featuring a combination of comedic, YouTube style video clips that are supported by easy to navigate text and graphics covering a variety of driving subjects ranging from basic traffic laws to more serious issues like DUI and seat belt use. The real beauty of this course is that it’s not only fun and effective; it can also be completed at your own pace in as little as 5-minute increments. Upon completion of all modules and passing of a simple 25 question quiz covering course material you get a certificate of completion that can be submitted to your Insurance Company to qualify for the mandated insurance discount upon policy renewal.

MVC’s Chief Administrator Sharon A. Harrington went on record stating , “The MVC is constantly looking for ways to utilize the Internet to provide services to all New Jersey motorists, and these defensive driving courses are a perfect example. ” Harrington also said: “With these online courses, motorists will receive the same invaluable instruction as they would in a classroom, but will have the luxury of using their computer to log in and out of the course at their convenience.”

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Investment losses send State Auto to 4Q loss

After racking up record catastrophe losses in the first nine months of the year, it was the stormy financial world that helped send State Auto Financial Corp. to a loss in the fourth quarter.

The Columbus-based insurer said it lost $600,000, or 2 cents a share, in the last three months of 2008. That compares with profit of $41.7 million, or $1.01 a share, the year before. The fourth-quarter loss includes a $29.7 million write-down on the company’s investment portfolio, State Auto (NASDAQ:STFC) said.

“(The company’s) strong fourth-quarter sales and overall profitable underwriting results were not enough to compensate for the turmoil in the world’s financial markets,” CEO Bob Restrepo said in a release.

During the quarter, net written premiums grew 16 percent to $281.2 million, but the company was hit with $32.7 million in investment losses. That helped send total revenue down 2 percent to $273.3 million from $278.3 million a year ago.

The company’s combined ratio – measuring losses and expenses as a percentage of earned premiums - in the fourth quarter increased to 96, up more than 10 points from 85.2 in last year’s fourth quarter. But new storm activity contributed little to the increase, unlike three previous quarters of consecutive record catastrophe losses. State Auto’s full-year combined ratio totaled 109.8, meaning the company logged about $11 in catastrophe losses for every $10 in premiums it earned. Hurricane Ike accounted for more than $45 million in losses during the third quarter after causing serious damage in Texas and sending strong winds into Ohio, Kentucky and Indiana in September.

State Auto’s full-year loss totaled $31.1 million, or 78 cents a share, versus profit of $119.1 million, or $2.86 a share, in 2007. Revenue for the year grew 6 percent to $1.18 billion from $1.11 billion the year before.

Restrepo told investors Tuesday the company has reason to be optimistic in 2009 despite rough economic conditions.

“Despite record catastrophe losses in the first three quarters, a prolonged soft business insurance market and a sharp decline in the financial markets, STFC produced an underwriting profit in the fourth quarter and continued to grow,” he said.

State Auto employs about 2,000. Columbus-based State Automobile Mutual Insurance Co. owns about two-thirds of its shares.

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PCI Releases Paper Highlighting Cost Shift in Auto Insurance if CT Changes Territorial Rating Law

HARTFORD, Conn. – Most Connecticut drivers would pay more for auto insurance – with some locations paying up to 5.3 percent more, on top of the additional 5.6 percent that they are already paying – if the Legislature enacts a bill (HB 6444) that places new limits on the use of geographic location as an underwriting and rating factor, according to a report issued today by the Property Casualty Insurers Association of America (PCI).

The paper notes that characteristics reflecting the geographical location of a driver’s residence are among the most effective variables for predicting auto insurance losses. Some of the characteristics contributing to the varying likelihood of loss among different areas are traffic density, health care and body shop repair costs, claiming behavior, attorney involvement, level of exposure to uninsured drivers, motor vehicle theft rates and fraud. In order to have equitable insurance premiums throughout a state, dissimilarities in the driving environment must be recognized. The price paid for insurance should correspond with the risk.

House Bill 6444 would change Connecticut’s current law which requires that 75 percent of the auto insurance rate for each territory be based on the territory’s own claims experience and the remaining 25 percent be based on statewide claims experience. Connecticut is the only state in the nation that requires insurance prices be set using such an arbitrary formula. The new formula would be a 50-50 split between each territory’s own claims experience and statewide claims experience.

“The net effect of HB 6444 would be to make insurance underwriting and rating less accurate and result in consumers in lower risk areas subsidizing consumers in higher risk areas,” said Paul Magaril regional manager and counsel for PCI. “Consumers that pose higher risk should pay more for insurance. This bill turns that notion on its head. The use of geographic location has been proven to be a highly accurate predictor of risk. By enacting legislation that eliminates or severely limits the use of this factor, the state is in the position of picking winners and losers regarding auto insurance. Based on this legislation, the majority of drivers in Connecticut would be losers. The big winners would be those who file the most claims and have the highest losses. That is not good public policy.”

According to the paper on average, 61 percent of insured drivers in the entire state would pay up to 5.3 percent more for their full coverage (liability and physical damage) rates. The overall impact of a 50-50 rule would mean rates for drivers in the highest risk areas would be 22.7 percent lower than what their true level of risk indicates. Conversely, rates for drivers in the lowest risk areas would be 11.2 percent higher than what their true of risk indicates.

The paper also provides analysis of the impact of this legislation on specific locations throughout the state. Hartford provides a stark example of the cost shift. Those living in Hartford County (excluding Hartford city and its suburbs and New Britain) would have to pay about 4.9 percent more to offset the extra 12.8 percent discounts given to the larger city/suburban motorists in their county

PCI is urging the Connecticut Insurance and Real Estate Committee to reject HB 6444.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $176 billion in annual premium, 35.9 percent of the nation’s property casualty insurance. Member companies write 43.8 percent of the U.S. automobile insurance market, 29.6 percent of the homeowners market, 32.8 percent of the commercial property and liability market, and 38.4 percent of the private workers compensation market.

WisBusiness: Industry says budget could boost car insurance prices

By Greg Bump
WisBusiness.com

If state insurance industry officials are right, Gov. Jim Doyle's budget bill could lead to a jump in insurance rates for individuals and businesses in Wisconsin.

One item Doyle is proposing would raise the minimum coverage requirement on auto insurance.

The president of the Wisconsin Insurance Alliance, Andy Franken, says raising caps would mean Wisconsin car insurance customers would see their rates jump by between 33 percent and 43 percent. Franken says the hardest hit ratepayers would be low- and middle-income families and individuals because they often purchase the minimum level of insurance. But he adds the change would impact all ratepayers.

In a separate proposal, Doyle proposes to alter what's called the joint and several liability language in a way Franken says would impact small and large businesses across the state. The Wisconsin Civil Justice Council, which represents Wisconsin employers in civil litigation issues facing Wisconsin, dubbed the joint and several liability provision “budget stimulus for trial lawyers.”

But Madison attorney Keith Clifford downplayed both potential changes. He says the old minimums for auto insurance have been in place for nearly 30 years.

"The burden of costs of these cases has been shifted from liability to health insurance and BadgerCare and Medicaid," Clifford said. The policy change "shifts the burden off health insurers and back onto liability insurance where it belongs."

Clifford said insurance customers shouldn't see a dramatic jump in costs due to the change. He said Wisconsin is one of two states that doesn't require drivers to carry auto insurance, yet Wisconsin is among the lowest in the nation for rates.

"The mandate on insurance has nothing to do with the cost of insurance, and coverage increases aren't going to have anything to do with it either," he said. "The fact is the minimums barely have anything to do with the rates."

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Online players faring well as auto insurance sales fall

Market share of direct insurers rises to 20 percent of the pie

February 13, 2009

Auto insurance sales fell sharply last month as the economic turmoil drove less people to buy cars, according to insurers.

Online stores weathered the slowdown better than the traditional type thanks to bargain hunters, they said. The online market share grew to about 20 percent.

According to data provided by General Insurance Association of Korea and individual member insurers, 858.3 billion won ($610.8 million) worth of auto insurance was sold in January, 9.3 percent less than the 946.7 billion won sold in January 2008.

Over the April 2008-January 2009 period, auto insurance sales only rose 1.5 percent from the same period a year earlier, the data showed. This is due to a steep decline in car sales. Local carmakers sold 73,537 new vehicles last month, 23.9 percent less than a year earlier.

Many opted to buy used cars, which are also less expensive in terms of insurance, insurers said.

“Most people buying a new car subscribe to physical damage coverage, but used car buyers are doing it less,” said a spokesperson from the General Insurance Association of Korea. Physical damage coverage, which is for damage to the vehicle, is optional.

Some tried to cut costs by buying insurance through direct insurers, said the companies. Online sales amounted to 171.6 billion won last month, accounting for 19.99 percent of all auto insurance sales, at 858.3 billion won for the month. The online market share continued to rise from 18 percent in October to 18.3 percent in November and 18.9 percent in December.

Direct insurers, called online insurers in Korea as sales occur by telephone or the Internet, sell insurance for an average of 15 percent less than traditional insurers, as they save on the cost of consultants and a physical network.

There are 15 car insurance companies in Korea, and 11 of them - except Samsung Fire and Marine Insurance, Hyundai Marine and Fire Insurance, LIG and AIG - sell online.

Four of the 11 firms operating online, such as Kyobo-AXA General Insurance, only sell policies via the Internet.

The online market is expected to continue to grow, as Samsung Fire and Marine plans to enter the field next month. Samsung, the biggest car insurer in Korea with about a 28 percent market share, had stuck to offline sales as part of its premium marketing strategy.

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MonitorBankRates.com Launches Comparison Shopping for Auto Loans, Mortgage Loans and Insurance Quotes.

MonitorBankRates.com releases new comparison shopping feature that allows consumers to search for the best auto loan rates, mortgage rates and obtain the best competitive Insurance Quotes.

New York (PRWEB) February 17, 2009 -- MonitorBankRates.com, a leading site for finding the best bank rates announces the release of several new consumer financial marketplaces that give consumers the ability to compare car loan rates, mortgage rates and insurance quotes from several financial institutions and insurance providers.

To obtain the best car loan rates or mortgage rates all consumers have to do is enter their zip code and they will be matched with financial institutions in their area offering loans. Once they have selected an institution they enter basic personal information and will be provided quotes.

Consumers currently can be matched with providers for home equity loans, new home purchase loans, refinance loans, mobile home loans and car loans.

To receive insurance quotes consumers are also matched with insurance providers in their area by entering their zip code. Once they have selected the type of insurance they need consumers enter their zip code and are provided a list of insurance providers in their area.

Currently the insurance marketplace includes auto insurance, health insurance, home insurance, life insurance, motorcycle insurance and small business insurance.

In addition to auto loan rates, mortgage rates and insurance quotes consumers can also find the best banking rates including CD rates, online savings account rates, checking account rates, and credit card rates.

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Court: Drive-by shooting victim's medical expenses not covered under state program

A woman wounded in a drive-by shooting in Irvington can't have her medical expenses paid by the state's uninsured motorist coverage, the state Supreme Court ruled today.

Though the court ruled the woman's injuries qualified as an "accident" under state insurance law, the justices concluded the shooting was not caused by "the ownership, maintenance, operation or use of an uninsured motor vehicle."

APNew Jersey Supreme Court Chief Justice Stuart Rabner speaks as Justices Virginia Long, left, and Jaynee LaVecchia, right.

-- Full court ruling

The high court ruled 4-3, in a decision written by Justice Roberto Rivera-Soto, that the victim's "injuries from the drive-by shooting were not causally connected to the insured's use of her motor vehicle."

In a dissent, Justice John E. Wallace held that the victim's shooting could logically be related to the use of a motor vehicle

"The operation or use of the uninsured vehicle provided the 'opportunity for the assault' and would not likely have occurred 'without the use of a car.'" Justices Virginia Long and Barry T. Albin joined Wallace in the dissent.

The victim, Camie Livsey, had just made a purchase at a grocery store in Irvington when she was shot while returning to her car on February 21, 2005.

Two witnesses said they saw an older model Toyota fleeing the scene, but it was never determined who fired the shot or whether it came from the Toyota.

The victim, whose medical bills exceeded $600,000, filed a claim for uninsured motorist coverage, but her automobile insurance carrier, the Mercury Insurance Group, denied the claim. Mercury said Livsey's shooting was not caused by an accident involving an uninsured motor vehicle.

Livsey filed a lawsuit against Mercury that was dismissed by a trial court judge, but an appeals court reversed that decision, likening Livsey's case to others in which drive-by-shooting victims were covered under their automobile insurance's personal injury protection.

In reversing the appeals court ruling, the Supreme Court held that while personal - injury protection covers injuries "caused by...an object propelled by or from an automobile," no such language exists under uninsured motorist coverage.

Neither Livsey's nor Mercury's lawyers could immediately be reached for comment.

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