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More Motorist Driving Uninsured Due to Economic Decline

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“Approximately one in six drivers across the U.S. may be driving uninsured by 2010, according to a recent study from Insurance Research Council IRC).”
 
“The report also found a strong correlation between the percent of uninsured motorists and the unemployment rate:  An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point.  Based on current unemployment rate projects, the percentage of uninsured motorists is expected to rise from 13.8 in 2007 to 16.1 in 2010.”
 
The economic downturn may initiate an increase in uninsured motorists but will vary from state to state.
 
Based on this trend, it is more important than ever to make sure that Business Auto policies contain adequate limits for Uninsured Motorists and Underinsured Motorists.  These coverages allow businesses to look towards their own insurance carrier for a deep pocket in the event that employees are injured in an auto accident by an uninsured or underinsured driver.

Business Insurance Rate Declines Continue

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According to the Market Barometer at MarketScout, rate reductions for property and casualty insurance continued in November.  There was an average rate reduction of 10% of accounts producing premiums over $250,000 whereas smaller accounts were down 8%.  On a continuous rate reduction cycle, small business owners’ policies reversed course and where down 9% in November in comparison to 12% in October.
 

Workers’ Compensation Claim Over Perfume

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A New Jersey court ruled that a woman could pursue a Workers’ Compensation claim after alleging that a co worker’s perfume resulted in a disabling injury.
 
“If you tell people that this is a woman with a chronic medical condition who smells some perfume and gets sick, should people have to pay for that? But I guess the appellate division says they should.”
 
Sexton was 64 years old at the time of the incident. Since then, DiMuzio Sorochen said her client has been largely dependent on an oxygen tank to breathe and unable to work.
 
It is interesting to note that the claimant had an existing lung condition caused by smoking a pack of cigarettes a year for 64 years.
 
As a general rule most courts and Workers’ Compensation commissions will go to great lengths to find that an injury or occupational illness is compensable.
 
Source:  Insurance Journal  

Most Big Brokers Stay The Course With AIG

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More larger brokers are confident in AIG’s future than smaller brokers and this philosophy impacts the advice that is given to their clients.
 
A recent survey in Oct. of 2008 by Advisen Ltd. indicates the following advice that was given to clients:
 
* 38% of brokers only provided information on the AIG crisis
* 23% of brokers recommended that their clients take no action
* 23% offered to get quotes to potentially replace AIG
* No brokers recommended that their clients replace AIG
 
The following attitudes describe brokers’ confidence in the financial strength of AIG:
 
* Very Confident: 28%
* Somewhat Confident: 47%
* Somewhat Concerned: 21%
* Very Concerned: 3%
* No Opinion: 1%
 
Source: Risk & Insurance, December 2008
 
 

Jury Verdict Awards Continue To Increase

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Jury Verdict Research has just released its Jury Awards and Statistics. It’s not a pretty picture. The median award in 2007 came to $250,000, up from $192,000 in 2006, representing an all-time high. Nearly one in five verdicts (18%) came in between $100,000 and $250,000, 14% averaged between $250,000 and $500,000, while 22% came in at more than $1,000,000, the highest percentage ever! Discrimination awards (based on race, sex, and disability) jumped from a low in 2006 of $247,500 to $252,000 in 2007.

The probability of a plaintiff’s winning a verdict in 2007 came to 71%, up from 56% in 2006. The probability of a plaintiff verdict was even higher in state cases at 66%, up from 55%. One bright lining: the median settlement for 2007 was $77,875, a reduction from $85,000 in 2006. The report contains many more statistics, as well as noteworthy employment practices awards.

Now is the time for employers to take action to protect themselves with EPLI insurance.

Mark Kinsey, Package Insurance Associates, Inc.

Insurance Agent Fined For Bad Mouthing AIG

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“The Minnesota Department Of Commerce has taken action against a Duluth insurance agent and agency for publishing a newspaper advertisement that solicited business from current policyholders of American International Group (AIG) insurers by questioning the financial health of the AIG parent company. The department has repeatedly affirmed the financial solvency of AIG’s insurance companies, despite the troubles associated with the parent company.”
 
The agent agreed to pay a $2,000 fine and the agency agreed to pay a $3,000 fine. The advertisement in question attempted to scare AIG policyholders into replacing their existing policies. It is illegal under Minnesota law to make any misleading statements about the financial condition of any insurer.