Payback to insurer

Roger Herrin learned that a court had ordered him to repay $500,000 he had received in insurance payments for the death of his son. Upset about the decision, he repaid $150,000 of the insurance funds – one-quarter of the court award – in quarters.

Herrin's 15-year-old son, Michael, was killed in a car accident in 2001, as reported on gawker.com. Michael was the only one of the four passengers in the car who died, so Herrin received the bulk of the $800,000 settlement from the car's insurance. He also received $1.65 million in other insurance payments as a result of his son's death.

The other crash victims and their families contested the ruling. The appeal court required Herrin refund his share to increase the other families' take. (continued.)

Herrin delivered 7,500 pounds of quarters, packed in 50-pound, transparent bags, to attorneys representing the other families on a flatbed truck and in an armored truck. They were transported from the Federal Reserve in St. Louis.

The attorneys weren’t thrilled about receiving the insurance proceeds in coins. They were suddenly in possession of $150,000 with no secure way to store the money, and no immediate means to transport the 150 bags to the bank.

“Advance notice would have been nice, because we could have made arrangements to have it delivered to the bank,” one of the lawyers told Gawker.

Herrin’s only regret was that he couldn’t make the delivery in pennies instead.

By: insurancebusiness.ca | 06/08/2013

FSCO alerts public to insurance scams

Sentel Insurance and LinkXInsurance are not licensed to do business in Ontario

July 30, 2013

The Financial Services Commission of Ontario (FSCO) is warning consumers that Sentel Insurance is not licensed to do insurance business in Ontario.

FSCO has been informed that a company or individual identifying themselves as “Sentel Insurance” has been placing phone calls to Royal Bank of Canada (RBC) clients. The calls come from the phone number 587-880-4306, and ask for the recipient’s personal information for the purposes of offering identity theft protection insurance on behalf of RBC.

Consumers should exercise caution if they are contacted by anyone from these coordinates. FSCO has confirmed with RBC that Sentel Insurance does not appear to be selling a valid product, and is not a valid insurance agency associated with RBC.

FSCO has also issued a warning alerting consumers that an individual called “Jermaine” is claiming to sell auto insurance on behalf of LinkXInsurance. The individual is using the following email address, website and phone number: linkxinsurance@gmail.com, “www.LinkXInsurance.com”, 647-830-8421.

This individual sold false insurance cards that listed Aviva Insurance Company and PC Financial Insurance Brokers as their insurers. LinkXInsurance and this individual are not licensed to do insurance business in Ontario.

It should be noted that Aviva Insurance Company of Canada is an insurance company that is licensed by FSCO, and PC Financial Insurance Brokers is an insurance brokerage that is licensed by the Registered Insurance Brokers of Ontario (RIBO). The companies have confirmed that they are not affiliated or associated with LinkXInsurance, this individual or this scam.

If consumers purchase insurance from brokers or insurers that are not licensed in the province, they are not protected under the Insurance Act and the regulations that govern Ontario’s licensed insurance companies and agents.

FSCO’s website contains a list of all insurance companies and brokers licensed to do business in Ontario.

State Farm's lightning-related claims cost more than $200 million last year

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2013-06-26

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With the start of peak lightning season, State Farm calls lightning one of nature’s most underestimated dangers, reporting that it paid more than $200 million in related insurance claims across North America last year.


Citing data compiled by Environment Canada, State Farm Canada notes in a statement that the country receives an annual average of 2.4 million lightning strikes, killing 10 people, injuring 164 – more than 94% of related deaths and 74% of injuries reported since 1986 have occurred between June and August – and igniting 4,000 forest fires that result in hundreds of millions of dollars in property damage.


State Farm paid more than $200 million in lightning-related insurance claims across North America in 2012, with the average claim being about $6,400. In Canada, the 131 lightning claims received cost approximately $1.3 million.

The Insurance Information Institute (III), based in New York, reports an analysis of homeowners insurance data in the United States by III and State Farm found there were 151,000 insurer-paid lightning claims in 2012, down almost 19% from 2011. The average lightning paid-claim of about $6,400 last year, however, was up 25% from 2011, the institute notes in a statement, issued in recognition of Lightning Safety Awareness Week, which runs from June 23-29.
“Taken together, these two factors resulted in $969 million in total paid lightning claims, up 1.7% from 2011,” the III statement adds.

In the U.S., State Farm reports the top five states ranked by the number of lightning claims paid by the insurer are as follows: Georgia with 3,844 claims costing approximately $21.5 million; Louisiana with 1,989 claims costing about $9.1 million; Texas with 1,825 claims costing around $17.7 million; Alabama with 1,713 claims costing about $11.5 million and Tennessee with 1,591 claims costing approximately $12.5 million.

State Farm Canada points out that as the number of electronics in homes and businesses rises, so does the risk of damage. “Plasma and high-definition television sets, home entertainment centres, multiple computers, smartphones, gaming systems and other expensive devices continue to have a significant impact on the number of claims,” notes the insurer.

“The average cost per claim continues to rise, in part because of the huge increase in the number and value of consumer electronics in homes,” Loretta Worters, vice president of the III, says in the III statement.

A whole-house surge protector is the best starting point for reducing the risk of damage or fire, State Farm Canada recommends. Localized surge protection for power cords to important or expensive electronic equipment and any telephone and cable/satellite TV lines connecting to that equipment can enhance protection.

While indoors, State Farm Canada advises disconnecting electrical appliances, including radios and television sets, before a storm and not touching them during a storm. In addition, do not handle electrical equipment or telephones since the electrical current from the lightning strike will travel through wires and cords.

III reports that the incidence of lightning claims in the U.S. in 2012 continued its downward trend. Paid lightning claims from 2004 to 2012 dropped 46%, a decline that may be attributed to increased use of lightning protection systems. Despite the drop, the average cost per claim rose 142% over the same timeframe.

The III suggests that investment in a lightning protection system will help protect property, belongings and equipment. Lightning protection systems are designed to provide a specified path to harness and safely ground the super-charged current of the lightning bolt. The system receives the strike and routes it harmlessly into the earth, thus discharging the dangerous electrical event.
Damage caused by lightning, such as fire, is covered by standard homeowners and business insurance policies, while some home and business policies provide coverage for power surges that are the direct result of a lightning strike, the institute adds.

An Environment Canada weather summary, issued at 4:46 am Wednesday, notes that for the third time in less than a week, thunderstorms have brought locally heavy rainfall over southwestern Manitoba resulting in further flooding problems in some areas.

“The storms moved east across southern Manitoba, including Winnipeg and the Red River Valley Tuesday night, bringing locally heavy rain, strong wind gusts up to 100 km/h and frequent lightning,” the statement adds.

Weather damage: Most Canadians don’t know what’s covered

New poll commissioned by IBC reveals Canadians' lack of coverage awareness

May 31, 2013
citopbroker.com

Many Canadians are unaware of what weather damage is covered by their home insurance policies.

A new national poll conducted by Pollara found that only 36% of Canadians know that water damage due to overland flooding is not covered by home insurance. Perhaps more surprisingly, only 10% know that sewer back-up damage may or may not be covered, depending on the policy. Fully 57% believe that this damage is covered by all home insurance policies.

Insurance Bureau of Canada (IBC) released the results of the poll today in Vancouver at the opening of the Federation of Canadian Municipalities (FCM) Annual Conference.

The poll, which was commissioned by the IBC, also reveals Canadians’ attitudes toward severe weather preparation.

The poll found that the majority of Canadians are not actively preparing for the possibility of bad weather despite an increase in its frequency and severity. Survey respondents, however, were somewhat more positive about their own personal preparations than they were of Canadians in general.

Only 8% of respondents believe Canadians in general are very actively preparing for severe weather. Similar numbers say this about the people in their province (9%) and in their communities (12%). Nonetheless, 22% say that members of their own households have been preparing very actively.
“The insurance industry is on the front lines when disaster strikes so we would like to see these numbers improve,” said Don Forgeron, IBC president & CEO, in a press release.

“We are very aware of the costly and devastating impact of severe weather,” he added, saying that preparation and adaptation are key to reducing losses.  “Insured losses as a result of severe weather have been above or near $1 billion in each of the past four years, but there is no way to measure these huge losses in human terms. Homes flooded, cars smashed, trees uprooted, roads washed out and businesses interrupted all take a toll on the lives of those affected,” Forgeron said.

Some of the other findings of the Pollara research include:

• One half of respondents believe that some damage to their homes due to severe weather is likely to happen in the next 10 to 15 years.
• Almost three quarters are confident that their municipal sewer systems will be able to handle the amount of water produced by storms in the next decade.

Overall, Canadians do not have good awareness of which weather damage is covered and which isn’t covered by home insurance policies. Many answer specific questions incorrectly and significant numbers can offer no opinion at all.
The poll found that:

• A small majority (53%) know that home insurance covers hail damage to roofs
  
• Only 46% know that home insurance generally covers damage caused by a tree destroying their roof as a result of a tornado.
  
• Less than one half (46%) know that damage from landslides and snowslides is not covered.
  
• Less than one half (45%) know that damage from tornadoes (aside from overland flooding) is typically covered by home insurance.
  
• Only 39% know that home insurance does not cover windstorm damage to trees.
  
• Only 9% know that coverage for roof collapses due to snow and ice accumulation depends on the policy. Forty-nine percent believe this damage is typically covered.
  
• Only 7% know that some “acts of God” (natural events that are not preventable) are covered by home insurance while some are not. Forty-four percent believe these events are covered and 35% believe they are not.
  
• Virtually no one realizes “acts of God” is not a term contained in their policies.

The top 10 costliest tornado's in history

The cost of a massive tornado that battered an Oklahoma City suburb could be more than $2 billion, according to a preliminary estimate announced Wednesday by state officials.

We continue to see increased natural disasters across North America. Although we generally see tornadoes in the Southern states we have seen some turbulent weather even in Ontario. Last Wednesday there was a confirmed F2 tornado that touched down outside of Lindsay, Ontario.

Thankfully we haven't had to deal with a disaster of this magnitude in Ontario and hope we never have to. I found a list outlining the most expensive tornado's in history. This recent Oklahoma tornado if estimates are accurate would put it in the top 3!

Rank      Date                           Location                          Cost (2013 USD)

1              May 22, 2011          Joplin, MO                       2.9 billion

2              April 27, 2011         Tuscaloosa, AL                2.3 billion

3              June 8, 1966            Topeka, KS                      1.8 billion

4              May 11, 1970           Lubbock, TX                   1.5 billion

5              May 3, 1999             Oklahoma City, OK        1.4 billion

6              April 3, 1974             Xenia, OH                      1.2 billion

7              May 6, 1975              Omaha, NE                     1.1 billion

8              April 10, 1979           Wichita Falls, TX           890 million

9              June 3, 1980              Grand Island, NE            805 million

10            October 3, 1979        Windsor Locks, CT         800 million

3 home renovations misconceptions

Three Common Reno Myths:

1) “My home will be covered under my original insurance policy during renovations”

48% of Ontario homeowners incorrectly believe they will always be covered by their original home insurance policy while their home is being renovated, and 27% are unaware that moving out for more than 30 days during renovations requires a policy update.

“Upgrades requiring extensive work, such as adding an extension to your home, may require you to change your entire policy to a building under construction,” said Minor. “And, if you’re not living in your home during renovations, it becomes an easier target for thieves and undetected water damage, which is why your insurer may require you to secure a vacancy permit if you move out for more than a month.”

2) “If my contractor is injured on my property while working, his insurance will cover it”

Contractors are trained professionals, but accidents can and do happen. However, 39% of Alberta homeowners incorrectly believe that if a contractor is hurt on their property while working, they will not be liable.

“If a contractor or their employees are injured on your property, you could be liable for their medical bills, lost wages, or damages for pain and suffering – all out of your own pocket,” said Minor. “When choosing a builder, ask to see their public liability insurance certificate. The amount of insurance coverage they have would depend on the type of renovation, the number of employees and cost of the renovation. The higher the limits of coverage, the more protection you would have.”

3): “Renovations don’t affect my insurance coverage”

Many B.C. homeowners don’t know which renovations can decrease their premiums, but are willing to find savings: 78% said they would be likely to make certain upgrades to their home if they could save money on insurance premiums in the longer term.

“Simple renovations like installing security devices, such as alarm systems and deadbolts, or fixing your weathered roof may decrease your premiums,” said Minor.

On the other hand, many B.C. homeowners don’t know the types of renovations that can impact their premiums: 20% are unaware that upgrading their electrical system or replacing a weathered roof could lower their premiums, and 54% did not know that installing granite countertops or expensive appliances could increase their premiums.

“Anything that may impact the value of your home or probability of a claim will also affect what and how much insurance coverage you need,” said Minor. “Although water proofing your basement may not be as exciting as new stainless steel kitchen appliances, these types of renovations can help protect your home and belongings. It’s always a good idea to talk to your insurance provider to understand more about your coverage.”

Follow us on Twitter at @CITopBroker for more insurance tips and advice.
Content taken from:http://www.citopbroker.com/news/mythbusters-home-renovations-5047

FSCO warns of insurance scam

April 9, 2013

 

 Royal Insurance Company and Stock Exchange Insurance aren’t licensed to do insurance business in Ontario, says the Financial Services Commission of Ontario (FSCO).

According to FSCO, the following phone number has been used in relation to this scam: 601-990-6303.

Victims of this scam report being directed to call this number and speak with “Gina” about arranging insurance.

In April 2012, FSCO warned that Royal Insurance was not licensed to do insurance business in Ontario.

FSCO notes that Royal Insurance Company and Stock Exchange Insurance are not affiliated or associated with Royal & Sun Alliance Insurance Company of Canada.