Premier Choice Insurance Agency, LLC

December 21, 2011 Choosing a professional insurance agent

What should you look for when choosing a professional insurance agent?

Insurance Industry & Product Knowledge:

Look for an agent that has knowledge of their industry and the products they offer. One way an agent demonstrates this is through the professional designations they have earned through extensive training. These include designations such as: CIC, CPCU, CPIA, CLU, CRM

Knowledge of your industry:

An agent that is knowledgeable with respect to your industry works with multiple companies gain knowledge and experience with the issues facing those businesses.

Experience in day to day issues facing insurance consumers:

Professional agents work with their clients to develop solutions and reduce insurance costs - and they review client needs regularly. Does your agent discuss your needs and concerns with you at least once a year to determine changes to your insurance program?

Professionalism:

Professionalism is demonstrated in a number of ways. Look for things such as personally answered phone calls, prompt resolution of your requests, a 24/7 claims phone number, personal visits to your business or home, clear explanations of coverage, minimum standards within the agency designed to protect your most valuable assets - and be sure to check that all personnel within the agency are licensed agents!

Quality Products:

Not all insurance policies or companies are the same. Look for an agency that works only with companies that are financially stable as demonstrated by an A.M. Best rating of "A" or better. Does the agency provide a broad range of products or only the most "economy grade" policies?

Claims Service:

Look for an agency phone number providing 24/7 service, rather than a company provided "service center" phone number. An agent should provide the advice and attention you need at the time of a loss - this includes an explanation of the claims process and an agent that intercedes on your behalf when needed to assure that your claim is handled promptly and efficiently.

December 01, 2011 Understanding Insurance: Umbrella Policies

This story's played out thousands of times.

Distracted for just a moment you plow into the back of an expensive car. It all happens in a split second, and in that moment comes a wave of consequences. The car you've hit is driven by a top-level business executive who now is in transit to a hospital via Life Flight.

Thankfully, you met with your insurance agent who recommended you increase the liability coverage on your auto policy and boost your liability coverage even further by adding an umbrella policy.

As it turns out, your "old" liability coverage of $300,000 would not have been enough to deliver the coverage you need.

These situations can have several financially debilitating results.

As the victim recovers, undergoes months of physical therapy and lost wages, the costs mount and personal financial exposure increases. If the victim loses his job and house due to personal injury the likelihood of a lawsuit is assured.

With the proper coverage in place your insurance carrier will provide the legal support and liability coverage you need to address a decision that awards a substantial claim against you

Umbrella insurance was designed expressly for these circumstances. These policies are relatively inexpensive and typically purchased in increments of $1 million.

This is particularly important for people with substantial net worth and assets - which would otherwise need to be liquidated to satisfy a judgement in the event you are found liable for injury to another.

Some financial experts recommend that anyone with a net worth of more than $200,000 should have umbrella insurance.

Because of the litigious environment we live in, umbrella insurance goes well beyond auto accidents.

Should someone slip on your front steps or if a heavy tree branch falls and damages your neighbor's house, or worse, injures someone in that house, you could be the target of a lawsuit.

Umbrella insurance is not limited to personal coverage. Most businesses are candidates for commercial umbrella policies designed to protect them from the long list of liabilities they face.

Understanding umbrella insurance is easy when you distill it down to its essential element which is to provide additional liability coverage. Also important, is understanding that additional coverage is generally inexpensive and readily accessible. Just ask your agent.

Terri Powers owns Premier Choice Insurance Agency in Oregon City and is licensed in Oregon & Washington.

November 07, 2011 Understanding Insurance: Renter's Insurance

The statistics are compelling. "3 in 10 renters have renters insurance", cited one study. Another source commented, "Do you belong to the 2/3 of those who are renting an apartment or house and do not carry renters insurance?"

A recent analysis revealed that rented households experienced 192 property crimes per 1,000 households while homeowners experienced 137 property crimes per 1,000. This makes renters 40% more likely to experience property crimes than homeowners.

It's clear that renters are unduly exposed and run the risk of substantial losses when uninsured.

Here's the kicker, renters insurance is affordable. The Insurance Information Institute says the average annual premium for most renters is less than $200 a year!

In the event you fall into that 40% category of people that become the victim of a burglary, renters insurance can be essential coverage. If you are the victim of a fire, you may find the need for renters insurance even more important. What if your neighbor in the adjacent dwelling causes a fire? Your property may be damaged by smoke, water or fire. Now, what if that neighbor is among the 2/3 of renters that do not carry renters insurance? Who will make you whole?

Take the case of "Julie", whose house was damaged by smoke when her neighbor's home suffered a severe fire. The neighbor did not have insurance and everything in Julie's home was covered with soot, a highly corrosive material. A claim was filed immediately and a hotel room was arranged for Julie and her son while their home was professionally cleaned - including the ventilation system - which was important as Julie had developed bronchial problems as a result of the smoke.

Fortunately, Julie had renters insurance.

Renters insurance not only provides vital medical coverage in the case of an on-premises accident but will help in replacing furniture, clothes, pots and pans and others belongings that are damaged in a fire. It can also pay for temporary residence while you look for new quarters or wait for the repairs to your home or apartment to be made.

It's important to note the extent of coverage you have purchased. Does it provide Actual Cash Value (ACV) or Replacement Cost (RC) coverage? ACV provides cash reimbursement less depreciation while RC pays to replace the items you have lost at full "replacement" value. RC is more expensive coverage but well worth discussing when you are reviewing policy options.

When packaged with an auto policy renters insurance rates drop even further making this insurance an easy and affordable addition. Many companies also offer a discount on your auto insurance when you purchase a renters policy.

Renters insurance is accessible, relevant and affordable. Why most renters do not have coverage is a mystery but it's clear they should and they can just by calling their agent and inviting the conversation.

Terri Powers owns Premier Choice Insurance Agency in Oregon City and is licensed in Oregon & Washington.

October 07, 2011 Understanding Insurance: How much is enough?

A recent study by MSB Insurance indicates that "68% of homeowners are underinsured". The statistics for underinsured motorists, commercial insurance, health insurance and life insurance are equally compelling. Yet many American's feel they are over-insured.

"Underinsurance" is endemic and exposes insured's property, business, finances and welfare depending on which policies are insufficient to cover a loss. In most cases, boosting coverage to sufficient levels is neither difficult nor expensive.

Spending an hour with your insurance agent annually to review your coverage and avoid being underinsured could be your most valuable appointment of the year.

A recent example really drives this home.

She was 17 and so was he - their families had been friends since they were kids. Bill wanted to show-off his new sports car so he took Amanda for a spin in the country. Within the hour they were both victims of a life-altering accident that had Amanda fighting to survive.

Amanda's policy carried personal injury protection (PIP), but that coverage was exhausted by the time she made it to the emergency room. Even though Bill had insurance, he didn't have enough to pay the mountain of medical bills for Amanda.

In this case, everyone lost.

Amanda's parents were forced to sue their long time friends to help pay medical costs. They won in court and Bill's parents may be forced to sell their home to pay the judgment. Their longtime friendship was destroyed.

This is a story that is played out far too frequently and can be avoided. In this case, increased PIP coverage, higher uninsured motorist coverage, or an umbrella policy could have substantially eased this situation.

Like this auto insurance example, homeowners should know whether their home insurance is sufficient - whether their policy includes replacement cost or actual cash value for example. In the event of a catastrophic event, like a fire, replacement cost will provide the necessary coverage to replace the items you lost while actual cash value generally covers you for the depreciated value of your loss.

In all cases it's good to know where you stand and well worth an annual visit to review your policies with your insurance agent. Truly, when it comes to insurance, "an ounce of prevention is worth a pound of cure."

Terri Powers owns Premier Choice Insurance Agency in Oregon City and is licensed in Oregon & Washington.

June 22, 2011 Study: Drivers Favor Red Light Safety Cameras

Two thirds of drivers in 14 big cities with longstanding red light camera programs support their use, according to a new survey released by the Insurance Institute for Highway Safety (IIHS).

This study adds to the overwhelming body of evidence showing the life-saving benefits of this technology as well as strong public support for the use of red light safety cameras.

The survey also showed that more than 90 percent of drivers surveyed in the 14 cities believe red light running is unacceptable, and more than 80 percent deem it a serious threat to personal safety.

PERCENTAGE OF DRIVERS WHO SUPPORT RED LIGHT CAMERAS IN EACH OF 14 STUDY CITIES (IIHS)

Bakersfield, Calif. 68%    Portland, Ore. 68%

Baltimore, Md. 67%        Raleigh, N.C. 62%

Chandler, Ariz. 75%        Sacramento, Calif. 71%

Chicago, Ill. 65%             San Diego, Calif. 64%

Garland, Texas 66%       Santa Ana, Calif. 54%

Long Beach, Calif. 48%  Toledo, Ohio 58%

Phoenix, Ariz. 74%        Washington, D.C. 78%

The findings follow a March 2011 National Safety Council study that found fatal crashes at intersections with traffic lights decreased by 17 percent from 2005 to 2009, and in the same five-year period, fatal intersection crashes involving red-light running decreased by 27 percent.

Additionally, a February IIHS study found that in 2009, 676 people were killed and 130,000 were injured in crashes that involved red light running. Nearly two-thirds of people killed in intersection crashes are pedestrians, bicyclists or occupants of other vehicles.

Red light safety cameras helped save more than 150 lives in 14 of the biggest U.S. cities from 2004 to 2008. Had the cameras been operating in all 99 U.S. cities with populations of more than 200,000, more than 800 lives could have been saved.

 

Source: National Coalition for Safer Roads

June 17, 2011 Lapsing auto insurance to save money can cost up to 12 percent more

Lapsed car insurance policies can lead to up to a 12% increase in insurance rates, according to a new analysis.

Drivers who let their most recent auto insurance coverage lapse before purchasing a new policy paid an average of 5.7% more than the $1,405 paid for annual coverage by drivers who maintained continuous coverage, according to an examination of 184,000 car insurance policies sold through Insurance.com in 2009 and 2010.

Drivers with a history of allowing their policies lapse, which is not uncommon in a tough economy, tend to be more likely to be involved in crashes, according to car insurance company research.

Drivers insuring a single vehicle whose previous policy had lapsed paid 8.8% more in average annual premium costs than drivers who maintained continuous coverage for one vehicle, who paid an average of $1,222.

Insurers begin charging higher rates with policies that lapse by as little as one day, according to the Insurance.com data. The penalty is even greater when insuring multiple cars.

Drivers insuring two or more vehicles whose previous policy had lapsed paid 12% more in average annual premium costs than the $1,781 drivers who maintained continuous coverage for two or more vehicles paid.

"Dropping auto insurance to save a few bucks in the short run can be very costly over the long run," says Chris Kissell, managing editor of Insurance.com. "It's the very essence of 'penny wise, pound foolish.'"

By IFAwebnews Staff

June 08, 2011 Q1 Numbers: Premiums Up, Profits Down

The P-C industry 2011 first quarter financial results have been tabulated, but as soon as they were reported, eyes shifted to the pending close of Q2 and what year-end 2011 might look like. By itself, Q1 was somewhat unremarkable but it did show a turn to deteriorating underwriting results. What Q1 does clearly set the stage for is the impact of Q2 catastrophe losses and what an above-average hurricane season might bring.

OPERATING RESULTS FOR 2011 and 2010 ($ Millions)
FIRST QUARTER	2011	2010
Net Written Premiums	108,589	104,894
Combined Ratio, Post-dividends (%)	103%	101%
Investment Income to Earned Premiums (%)	12.9%	12.2%
Net Income (% of EP)	7.4%	8.7%
Surplus (consolidated)	564,656	540,318
© 2011 Verisk Analytics, Inc. All rights reserved.

As you can see from the above table, the Q1 results are a mixed bag from the insurer/risk taker perspective. While premiums rose for the fourth straight quarter, the industry underwriting results (that is, the combined ratio of losses and expenses divided by premiums) worsened to 103% compared to a year ago at 101%. With investment results offsetting the deterioration some, overall, the quarter ends with net income down from 2010 by just over one full percentage point when compared to premiums.

What some industry watchers are wringing their hands over is the potential impact of catastrophe losses on top of signs of underwriting deterioration. It is noteworthy that the first quarter underwriting results worsened with only typical catastrophe losses occurring from January to March. What we know from the second quarter (including about estimates of tornado and severe weather from Alabama to Missouri to Massachusetts) is that added to the typical $2 billion of catastrophe losses in Q1, we will see another $15 billion of catastrophe losses added to Q2.

And, there's more. All the hurricane modeling groups are predicting a heavier than average hurricane season and a typical year would result in an added $11 billion of hurricane catastrophe losses (based on 2000 to 2009 average and in 2010 dollars). Combining $2 billion from Q1 with the predicted $15 billion from Q2 and then adding $11 billion of hurricane losses would result in $28 billion in catastrophe losses in 2011. If we assume the rest of 2011 will look like Q1 and we deduct from the $28 billion a typical, average year of catastrophe losses of about $16 billion, 2011 would see about $12 billion in excess catastrophe losses, or 3-4% added to the combined ratio on top of the 103% seen so far in 2011.


Source: A.M. Best Aggregates & Averages

So where does this leave independent agents and their clients? It's clear the industry is reacting to the protracted soft market, but it is hard to project any certain or concrete signs of significant change at this point. It does feel like insurers are watching very closely and risk takers are increasingly nervous as any wiggle-room for absorbing catastrophes in 2011 would already seem strained as we close-out Q2. On the bright side for customers, you should know that radical and upsetting hard markets tend to come only when the industry actually loses money after investment income. As that occurs at a combined ratio of about 112%, there is yet some room, even in this year of seemingly frequent headline-grabbing catastrophes.

Paul Buse (paul.buse@iiaba.net) is president of Big I Advantage® and a licensed p-c agent.