Category Archives: Insurance

Insurance rates are about to skyrocket, study says

09 Monday Jan 2012

Posted by in Insurance, law, News

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As reported by Lawyers Weekly, “Insurance industry executives across the country are making a concerted effort to raise coverage rates and boost profits, and they plan to use natural disasters and sue-happy lawyers as scapegoats, according to a Dec. 15 study. Americans for Insurance Reform, a coalition of nearly 100 consumer and public interest groups, concludes in its study, “Repeat Offenders: How the Insurance Industry Manufactures Crises and Harms America,” that insurers periodically cry wolf not only to fatten their wallets but also bolster calls for tort reform.”

http://nclawyersweekly.com/category/top-legal-news/

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Shun Those Cell Phones While Driving

14 Friday Oct 2011

Posted by in Insurance, NC Law, Negligence

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More than 20 percent of injury crashes in the United States involve reports of distracted driving, according to the National Highway Traffic Safety Administration (NHTSA). Of those killed in distracted-driving related accidents, 18 percent involved the usage of a cell phone. Another study indicates that using a cell phone while driving, whether it is a hand-held or hands-free device, delays a driver’s reactions as much as having a blood alcohol concentration at the legal limit of .08 percent.

Cell phones, and particularly smart phones, are considered one of the leading driver distractions. As a result, more and more communities are placing restrictions on drivers’ use of cell phones. The following tips are offered to motorists with regard to cell phone use in vehicles.

  • You should wait until the car trip is complete before placing a call. Your cell phone’s voicemail feature should answer a call while you are driving.
  • Absolutely essential calls should only be performed while stopped. However, it is not wise to pull over on the side of the road where a rear-end collision is possible. Instead, you should pull into a parking lot to perform this task.
  • The phone should be placed where it is easy to see and reach.
  • You should take advantage of speed-dialing capabilities.
  • You should never drive and talk on the cell phone during stressful, emotional, or complex discussions since the risk of an accident is heightened.
  • You should consider using a hands-free cellular phone since some studies indicated that these are safer to use.
  • You should never text message while driving.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2011
International Risk Management Institute, Inc.

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Don’t Become an Auto Theft Victim

17 Wednesday Aug 2011

Posted by in Insurance, law

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Every 30 seconds, a motor vehicle is stolen in the United States. Using Federal Bureau of Investigation statistics, the National Insurance Crime Bureau reports that annual property losses from these thefts are approximately $5 billion. Although technology and aggressive law enforcement actions have lowered the auto theft rate in recent years, you should still be cognizant of this loss exposure. The following tips may prove helpful in reducing the chances that your vehicle or property in it may be stolen.

  • When temporarily leaving your vehicle, never leave it running or with the keys in the ignition.
  • Always lock your car and roll up the windows, even if it is in your driveway. If you have a garage, park your car in it, and close and lock the garage door.
  • Park in busy, well-lit areas.
  • When purchasing auto stereo equipment, choose items that can be removed and locked in the trunk.
  • When using valet parking or taking your car in for repairs, leave only the ignition key with the attendant.
  • Turn your wheels sharply toward the curb when parking since this makes it extra difficult for thieves to tow the vehicle. Always use your emergency brake, and leave the transmission in park or in gear.
  • Look into various antitheft devices for your auto. Ask about auto insurance discounts for antitheft devices, including alarms and window etchings.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2011
International Risk Management Institute, Inc.

Do You Need Pet Insurance for Buddy?

13 Wednesday Apr 2011

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Veterinary bills are increasing much faster than the overall rate of inflation. Part of this reason lies in the advancements of medical techniques and the increasing number of veterinarian specialists. These trends, however, come at a price. For example, performing a magnetic resonance imaging (MRI) exam on the spine of a cat can cost upwards of $2,000. Removing a tumor on a dog can cost $4,000, and implanting a pacemaker can cost over $7,500. Even dealing with a dislocated ankle can run you around $5,000.

As a result, pet insurance sales are increasing rapidly. Is this a wise purchase? Much of the decision depends on how you view your pet. If you are emotionally close to your pet and see it as a loving family member who is nearly irreplaceable, then consider the following questions. If the answer to any of the questions below is yes, you should look into purchasing this coverage.

  • Are you willing to go into debt to provide health care for your pet?
  • Are you on a fixed or limited income?
  • Would you be willing to spend over $5,000 to save your pet in a life-threatening situation?

If you decide to purchase this protection, you should carefully compare the rates and policy provisions of at least three well-established pet insurers.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2011
International Risk Management Institute, Inc.

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Actual Notice Required to Trigger Duty to Defend

25 Friday Mar 2011

Posted by in Insurance, Insurance Coverage, NC Court of Appeals, NC Law

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Insurers need actual notice to require a duty to defend. If you are an insured and you have been served with a lawsuit the first thing you need to do is notify your insurer in writing. If you fail to notify your insurer you will have to prove to the court that you had a good faith reason for the failure. This is becoming harder and harder to do. Great American Ins. Co. v. C.G. Tate Construction Co., 315 N.C. 714 (1986). See also Kubit v. MAG Mutual Ins.

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Insurance Not Responsible for Expert Witness Fees

25 Friday Mar 2011

Posted by in Insurance, NC Court of Appeals, NC Law

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Most of the time the insurance company will be responsible for expert witness fees when the insurer has a duty to defend but not in Bain v. Unitrin Auto and Home Ins. Co. The N.C. Court of Appeals, held that where the insured hired the expert witness on his own before filing a counterclaim that gave rise to the insurer’s duty to defend the insurer was not responsible for the expert’s fees even if the expert testified regarding the counterclaims that the insurer was defending.

January’s Tip of the Month

12 Wednesday Jan 2011

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Lower Your HO Insurance Costs

Homeowners insurance premiums often take a substantial bite out of a family’s budget. You may, however, be paying too much for this coverage. The following are some approaches you can use to reduce your homeowners insurance costs.

  • Try to increase your deductible to the highest one you can afford, even if the premium savings do not appear to justify it. This will decrease your premium and increase the likelihood that your loss history will be excellent, since minor losses will be paid by you and not your insurance company. A loss-free record over time saves premium dollars. For example, if you currently have a $250 deductible on your homeowners policy, consider increasing it to $500 or $1,000.
  • Consider purchasing a monitored burglar alarm. Alarms have proven successful in reducing burglary rates. In addition, most insurers provide premium discounts to consumers with these alarms, some as high as 20 percent.
  • Maintain your home in optimum condition. If a repair is needed, perform it as soon as possible. For example, loose or missing roof shingles should be repaired or replaced immediately. A home in excellent condition is much less likely to experience a loss.
  • Buy your home insurance and your auto insurance from the same company. Discounts normally apply when you do.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2011
International Risk Management Institute, Inc.

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Does home insurance cover bedbugs? | Bankrate.com

13 Wednesday Oct 2010

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Does homeowners insurance, or renters insurance for my friends in New York City, cover bedbug infestations? This is a question that few, if any, homeowners insurance agents have ever fielded prior to the Great Bedbug Epidemic of 2010. Now the calls are coming out of the woodwork, so to speak.

So. Let’s say you have bedbugs, and hypothetically, you’re not too embarrassed to admit it to your homeowners insurance agent. Can you make a claim to rid your home or apartment of the uninvited guests?

Uh, no. According to Wilkinson, most standard homeowners insurance and renters insurance policiesexclude vermin infestations. Keeping bedbugs and other vermin at bay is considered the homeowner’s responsibility. Or option, I suppose.

via Does home insurance cover bedbugs? | Bankrate.com.

October’s Insurance Tip of the Month

13 Wednesday Oct 2010

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Monitor Your Teen’s Driving

Automobile accidents are easily the leading cause of death for teenagers across America, according to the National Highway Traffic Safety Administration (NHTSA). For both genders, drivers between the ages of 16 and 19 have the highest average annual crash and traffic violation rates of any other age group. NHTSA data also show that unaccompanied 16- and 17-year-olds crash nine times more often than adults.

Research indicates that young novice drivers tend to underestimate the crash risk in hazardous situations. Teen drivers also tend to take more risks while driving, partly due to their overconfidence in their driving abilities. One way for parents to reduce their teen’s chances of being involved in an auto accident is to use technology to monitor their driving characteristics and provide appropriate feedback.

A number of “black box” products are now available on the marketplace to facilitate monitoring drivers. These small devices (often the size of a pager and starting at around $280) can be simply installed into the auto your teen drives by plugging them into the Vehicle Data Link Connector (on 1996 and new vehicles). They can detect and record your teen’s speed, aggressive driving such as “jack-rabbit” takeoffs, failure to wear a seat belt, unsafe backing techniques, driving locations, monthly mileage, and driving times. Thus, if your teen’s curfew is at midnight and they get home at 1:00 a.m., you will know it.

With some of these products, you can simply pop the memory card out of the “black box” and plug it into your PC to display the reports and graphs. You can then review the results with your teenager, providing a great educational opportunity based on solid, technology-driven evidence. Research indicates that this type of monitoring and coaching pays off big dividends in the form of safer teen driving. Numerous companies offer these products in the marketplace, with some of the more sophisticated ones costing upwards of $1,000. A few insurers offer discounts for families who utilize these devices.

For more information on this Tip and others visit http://www.IRMI.com

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Homeowner’s Insurance Does Not Cover Defective Construction « South Carolina Construction Defect Law

05 Tuesday Oct 2010

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The Sixth Circuit Court of Appeals ruled that an insurer was not obligated to pay for water damages to a condominium building because the insurance policy specifically excluded coverage for damages caused or resulting from building construction and design defects. TMW Enterprises, Inc. v. Federal Ins. Co., No. 09-1542, (6th Cir. Aug, 25, 2010). Substandard construction on an exterior wall allowed the water intrusion which resulted in damages of $4 million.

“In no case will we entertain any loss or claim that occurred or was in progress prior to the policy period inceptiondate or after the policy period expiry date shown on the Declarations.” This, and other similar language is common in policies as it implies that defective construction occurs prior to completion. While this language is in the insuring agreement, the clause discussed in the TMW case was a specific exclusion which related to substandard construction.

via Homeowner’s Insurance Does Not Cover Defective Construction « South Carolina Construction Defect Law.