National Risk Management and Associates

  • Quote
  • Contact
  • Payment
  • Claims
  • Home
  • About
  • Personal
    • Wedding Insurance
    • Special Events Insurance
  • Business
  • Life and Health
  • Our Carriers
  • Resources
  • Blog

December 16, 2018 By Reports Reports

High Insurance Rates and Litigation

Courtesy of iii.org

It is a standard practice throughout the insurance world: As a convenience, a policyholder grants a third party – an auto glass repair company, a medical practitioner, a home contractor – permission to directly bill an insurer to settle a claim. That practice is called an assignment of benefits, usually known by the acronym, AOB.

In Florida, abuse of AOBs has fueled an insurance crisis. The state’s legal environment has encouraged vendors and their attorneys to solicit unwarranted AOBs from tens of thousands of Floridians, conduct unnecessary or unnecessarily expensive work, then file tens of thousands of lawsuits against insurance companies that deny or dispute the claims. This mini-industry has cost consumers billions of dollars as they are forced to pay higher premiums to cover needless repairs and excessive legal fees. And consumers often do not even know that their claims are driving these cost increases.

The abuse therefore acts somewhat like a hidden tax on consumers, helping to increase what are already some of the highest insurance premiums in the country.

This report discusses how AOB abuse works, how and why it is spreading, and how it is contributing to higher insurance costs for Florida consumers.

Please click on the file name below to view the white paper in PDF format. You will need Adobe Acrobat Reader to view the file.

Download aobfl_wp_121118.pdf

You can download Adobe Acrobat Reader, free of charge, from the Adobe website (https://www.adobe.com/products/acrobat/readstep.html).

Filed Under: Insurance

December 9, 2018 By Reports Reports

Hurricane Damage Report 2018

Courtesy of iii.org

The 2018 Atlantic hurricane season was less active than the 2017 season but still caused extensive property damage across the southeastern United States, according to the Insurance Information Institute (I.I.I.).

The 2018 hurricane season officially concludes tomorrow (Nov. 30) and saw the formation of 15 named storms. Eight of the 15 became hurricanes, and two (Florence and Michael) became major hurricanes, according to Philip Klotzbach, Ph.D., a research scientist with the Department of Atmospheric Science at Colorado State University (CSU). Klotzbach is also a non-resident scholar with the I.I.I.

The original CSU forecast for 2018, presented in April, predicted slightly above-average hurricane activity with three major hurricanes. The seasonal outlooks CSU subsequently released in the summer envisioned less hurricane activity, with CSU forecasting 12 named storms, five hurricanes, and one major hurricane on Aug. 2.

“Even in what ended up as an average year for major hurricane activity, 2018 was record-setting, with Hurricane Florence spurring statewide rainfall records in North and South Carolina. In addition, Hurricane Michael was the first time on record a Category 4 hurricane made landfall in the Florida Panhandle,” said Sean Kevelighan, I.I.I. CEO. “As financial first responders, the insurance industry continues to be on the ground, helping to rebuild our customers’ livelihoods and economies more broadly. Nonetheless, these extraordinary hurricanes highlighted for coastal residents and businesses the importance of disaster preparedness, building resilient structures and insuring properties against both flood and wind-caused damage.”

A named storm is considered a hurricane when its sustained wind speeds are at least 74 miles per hour. Major hurricanes are those that are designated as a Category 3 storm or higher, with sustained wind speeds of at least 111 mph.

Florence made landfall as a Category 1 storm on Sept. 14 near Wilmington, North Carolina. It was categorized as a major hurricane in the Atlantic Ocean, but the storm’s wind speeds diminished significantly before striking the U.S. coastline. The weather system lingered for days in the Carolinas, dumping as much as 36 inches of rain in North Carolina and 24 inches in South Carolina, the most ever recorded there after a hurricane.

Michael made landfall on Oct. 10 near Mexico Beach, Florida. More than 85,000 of the 125,000-plus claims Florida’s insurers received as of Nov. 16 as a result of Hurricane Michael were for insured residential properties, and the total estimated insured claim payouts currently are estimated at $3.4 billion.

An average Atlantic hurricane season produces 12 named storms and six hurricanes, including three major hurricanes. The 2017 hurricane season had 17 named storms. Ten of the 17 reached hurricane strength and six became major hurricanes, according to the National Oceanic and Atmospheric Administration (NOAA).

Filed Under: Hurricanes

December 2, 2018 By Reports Reports

Staying Safe with Enough Sleep!

Courtesy of iii.org

I came across &l=91097_HTML&u=41978829&mid=6230351&jb=0&utm_medium=email&utm_source=SRI+newsletter+01&utm_campaign=http%3a%2f%2finstitute.swissre.com%2fresearch%2flibrary%2feyes_wide_shut.html">this from Swiss Re around 2 a.m., which helps explain why it caught my (sleepy) eye:

Consider these two facts: Firstly, two out of three man-made losses worldwide are due to human failure. Based on Swiss Re’s sigma research, this would mean that people trigger a loss volume of around USD 3 billion per year.

Secondly, life insurance generated premiums of USD 2.6 trillion in 2017. These two facts are linked because tired people make more errors and insomniacs are at a greater risk of dying earlier than would otherwise be the case.

That’s right – the insurance angle on sleep.

The lack of sleep is associated with increased rates of heart attacks, strokes, obesity and other diseases. Sleeping less can also contribute to the development of Alzheimer’s. And recent research found that chronic sleep restriction increases risk seeking behaviour.

If these trends change the loss patterns in property and casualty or mortality rates, this could have a multi-billion dollar impact on the insurance industry in the long run.

The lack of sleep has caused some high profile accidents, the most notable in my world being a New Jersey Transit train that in 2016 crashed into Hoboken terminal because the engineer, suffering from sleep apnea, zoned out at a crucial moment. One woman died, dozens were injured.

Swiss Re posits that society, ever accelerating, robs us of ever more sleep. The less we sleep, the woozier we become. And the more errors we make. (Our bodies wear out faster too, becoming susceptible to the maladies Swiss Re mentions above.)

A good dose of resilience helps here. New York area railroads are installing (by federal mandate) positive train control systems, which automatically stop trains in any sort of peril, including that of a tired engineer. The illustration above describes how the system works.

As for my own struggles – an e-book of white text on black background, and perhaps a cup of chamomile tea.

Filed Under: Insurance

November 25, 2018 By Reports Reports

Join Us to Reduce Distracted Driving

Courtesy of http://www.iii.org/fact-statistic/distracted-driving

Activities that take drivers’ attention off the road, including talking or texting on cellphones, eating, conversing with passengers and other distractions, are a major safety threat. The National Highway Traffic Safety Administration (NHTSA) gauges distracted driving by collecting data on distraction-affected crashes, which focuses on distractions that are most likely to affect crash involvement such as dialing a cellphone or texting and being distracted by another person or an outside event. In 2013, 3,154 people were killed in distraction-affected crashes, and 424,000 people were injured. There were 2,910 distraction-affected fatal crashes, accounting for 10 percent of all fatal crashes in the nation, 18 percent of injury crashes and 16 percent of all motor vehicle crashes in 2013.

FATAL CRASHES AFFECTED BY DISTRACTED DRIVERS, 2013

Crashes Drivers Fatalities
Total fatal crashes 30,057 44,574 32,719
Distracted-affected fatal crashes
Number 2,910 2,959 3,154
Percent of total fatal crashes 10% 7% 10%
Cellphone in use in distracted-affected fatal crashes
Number 411 427 445
Percent of fatal distracted-affected crashes 14% 14% 14%

Source: U.S. Department of Transportation, National Highway Traffic Safety Administration.

View Archived Tables

NHTSA says that in 2013, 14 percent of distraction-affected crashes occurred while a cell phone was in use. The chart below shows driver hand-held phone use by age.

DRIVER HAND-HELD CELLPHONE USE BY AGE, 2005-2014 (1)

 

(1) Percent of drivers using hand-held cellphones.

Source: U.S. Department of Transportation, National Highway Traffic Safety Administration.

View Archived Graphs

NHTSA’s website, Distraction.gov has more information on distracted driving. “It Can Wait”, a public awareness campaign funded by four by wireless carriers, provides resources on the dangers of distracted driving, including “From One Second to the Next”, a film by director Werner Herzog profiling the victims of distracted driving.

Filed Under: Featured

November 18, 2018 By Reports Reports

Want a Classic Car? Here Are Some Insurance Tips

Courtesy of iii.org

A classic, custom, collectible or antique car requires insurance that reflects your vehicle’s uniqueness and value. If you own—or are thinking of owning—a special set of wheels, find out about the kind of policy you need.


What types of vehicles need special insurance?

A classic, collectible or antique car is no ordinary car—and regular auto insurance is not sufficient to protect such a vehicle against damage or loss.

That said, there is no uniform definition of a classic car. If a car’s value exceeds its original selling price, then it might be considered collectible and a candidate for specialized classic car insurance. In general, vehicles that might warrant classic car auto insurance include:

  • Antique and classic cars, usually at least 25 to 30 years old
  • Hotrods and modified vehicles
  • Exotic and luxury autos—think James Bond
  • Muscle cars
  • Classic trucks

You might also seek specialized insurance for vintage military vehicles, classic motorcycles and antique tractors.

Qualifying for classic car coverage

A car’s age is not enough to qualify for specialized classic car insurance. While requirements differ from company to company, most cars need to meet the following criteria in order to qualify:

  • Limited use – Your classic car cannot be used for everyday commuting or errands, and your policy may include mileage limitations and proof the car is being properly garaged if you do travel with it. In some cases, insurers may require that you also own a primary car for everyday use.
  • Car shows and meetings – The limited use provision of a classic car policy allows for travel to car shows and auto club meet-ups; however, this coverage may be restricted by some insurers. If this is the case, there are insurers that can provide specialized coverage for car shows and meetings. Before choosing a classic car insurer, it’s worth checking whether they have travel restrictions if you plan to take your car on regular, multi-day, high mileage drives.
  • Secure storage – When not in use, your special vehicle must be stored in a locked, enclosed, private structure, such as a residential garage or storage unit.
  • A clean driving record – You may be disqualified from classic auto insurance if you have serious offenses on your driving record, such as reckless driving, repeat speeding violations or driving while intoxicated.

Not every vehicle, however special, will meet the qualifications of every insurer. For instance, some insurers may not cover vintage off-road vehicles. Insurers may also decline to insure vehicles that are in poor condition or have been previously damaged.

What you should know about classic car policies

Your classic car policy will include provisions found in standard auto insurance policies, notably property damage and bodily injury liability coverage. But there are some differences, as well:

  • Your car’s value – Because each car’s condition is unique, there is no set “book value” for specific makes and models. The first step in insuring your classic car is for you and your insurer to reach an agreement on the value of the vehicle. This value will be specified in your policy and your car will be covered up to that value without depreciation.

Note that, unlike everyday vehicles that depreciate over time as you add miles to them, classic cars may gain value. Make sure you adjust your coverage as the value of your auto appreciates.

  • Specialized repair or restoration – Your policy should you the flexibility to bring your vintage Mercedes, Ferrari or Corvette to a specialist—even if the rates may be twice, or three times, the cost of a typical car repair at a traditional auto body shop.
  • Special towing and spare parts – Coverage for towing is commensurate with the special demands of transporting a classic car. Spare parts coverage, too, needs to be aligned with the cost of replacing valuable and perhaps hard-to-find vehicle components, such as wheels, transmissions, and engine parts.

Filed Under: Car Insurance

  • « Previous Page
  • 1
  • …
  • 69
  • 70
  • 71
  • 72
  • 73
  • …
  • 80
  • Next Page »

Quick Contact

(407) 767-2950

Business Hours

Monday – Friday: 9 AM- 5 PM

 

  • Privacy Policy

24 Hour Hotline: (407) 415-8528

Follow Us

National Risk Management & Associates
220 Magnolia Avenue
Sanford, FL 32771
Phone: (407) 767-2950

Copyright 2015 National Risk Management, All Rights reserved

Designed by iWebResults