Local repair centers juggle an influx of winter customers
By DEBBIE KELLEY
THE GAZETTE
January 31, 2008 - 12:48AM
Slick roads from a regular cycle of wintry storms have caused pileups at local auto body shops.
Red Noland Collision Center is booked until mid-February to repair wrecked cars that are drivable, said Dale Francis, body shop manager. It’s one of the city’s largest dealership-owned collision centers, with a 25,000-squarefoot shop, 30 employees and $6 million in revenues last year.
Vehicles that have to be towed to the shop are accepted immediately but can take a month to six weeks to get fixed, Francis said. “It’s unusual for us to be backed up this far, but we can only schedule so many cars — we can do 230 a month,” Francis said.
“You can just see customers’ eyes twitch — it’s already a negative situation — when we tell them we’re looking at six weeks. They just can’t believe it.”
That’s why motorists should have rental-car insurance to defray the cost, State Farm Insurance agent Mark Campbell said. About 75 percent of customers at Wilson’s Auto Collision Inc. have rental-car insurance, said Ray Wilson, owner of the shop founded 22 years ago Friday.
“We tell them to call their agent to see if they qualify, because out-of-pocket rental is expensive and rental-car coverage isn’t,” Wilson said.
Various roadblocks can delay restoring a vehicle to its pre-crash condition, whether it was involved in a minor fender bender or a rollover. For example, Campbell said the insurance claim process can stall if the insurance company has to order an accident report from the police to verify fault.
Securing an appointment at a local body shop and getting parts to make the repairs also can add time. Severely damaged vehicles sometimes need parts that can’t be found in local parts stores, Francis said.
Wilson said his 14 employees are working as fast as they can, but they also are running several weeks deep in appointments. It’s the same at Black & White Auto Body & Paint, said Rick Lujan, owner and general manager of one of the city’s largest independents.
“You don’t need a lot of snow — just a couple of inches on the ground make a huge difference for body shops,” he said.
This winter has been more treacherous for local drivers than last winter, which brought several major blizzards, because motorists tend to stay off the roads during blizzards but feel more confident to venture out when snowfall is lighter, Lujan said.
To handle his shop’s load, Lujan has added four technicians for a total of 20 employees. “People don’t like to wait too long,” he said.
But it’s hard for auto body shops to gauge business volume, Wilson said.
“Everybody seems to get in a wreck that morning of a storm. Customers don’t just trickle in — they come all at once, and all of a sudden you’ve got an overflow,” he said.
Along with having to endure longer wait times, many motorists needing body work have high deductibles that must be paid out-of-pocket. Higher deductibles lower auto insurance premium costs, and Francis said he’s seen deductibles as high as $3,000.
It doesn’t take much of an impact, said State Farm’s Campbell, for the repair bill to top $1,000.
Lujan said it’s not unheard of for his body shop to fix a vehicle with $12,000 to $15,000 in damage.
And though winter brings a flurry of business, it’s not necessarily the busiest season for collision centers. About 11,000 cars in the area were damaged in a hailstorm last summer, Francis said.
As Wilson said: “It’s the snow and ice now. It’ll be the wind and sand damage in the spring, hail in the summer, then back to snow. Being weather-related is just the nature of our business.”
Thursday, January 31, 2008
Wednesday, January 30, 2008
Mass. Allows Rates and Commissions of 2 Largest Auto Insurers
By Andrew G. Simpson
Insurance Journal
The two largest auto insurance writers in Massachusetts have been given the green light to use the rates they filed for 2008 in rulings that characterize the state attorney general's objections as "irrelevant" in the state's new competitive marketplace.
The rulings also preserve contingent commissions for agents.
Massachusetts Insurance Commissioner Nonnie Burnes has ruled in favor of Commerce Insurance and Safety Insurance over the protests of Massachusetts Attorney General Martha Coakley, whose lawyers had tried to persuade Burnes that items contained in the two insurers' rate filings led to rates that were excessive even though they both filed for overall decreases.
The rulings mean the two insurers may proceed to market using their filings, which called for an average rate decrease of 8.1 percent by Commerce and an average 6.9 percent cut by Safety.
Commerce is the largest auto insurer with 31.6 percent market share, while Safety ranks second with 11.2 percent.
In declining to disapprove the insurers' rate filings, Burnes also handed independent agents' a victory by upholding the inclusion of contingent commissions as part of the rate filings. Coakley's team had argued that contingent commissions should not have been part of the rates.
Until this year, auto insurers had their rates fixed and established by the insurance commissioner. But beginning in April, 2008, insurers are being allowed to compete using their own rates under a new managed competition system. Insurers file individual rates which become effective unless the commissioner disapproves them.
The attorney general has the right to trigger rate hearings on individual insurer rate filings she deems excessive, which Coakley did in the cases of Commerce and Safety, but the final decisions rest with the commissioner.
Coakley objected to provisions for profit, expenses including contingent commissions, and loss trends used by the two insurers in their rates.
But Burnes dismissed the AG's entire analysis, ruling in favor of the insurers on each provision. Burnes suggested that while the AG's approach might have worked under the previous fix-and-establish system, it was irrelevant under the new managed competition system and that the AG "fails to recognize" that the rules have changed.
Burnes said that while the attorney general wants to challenge individual provisions of rates, as was done under the previous system, a competitive system requires a broader view.
"I do not set the rates under c. 175E [the rate statute]. My authority is limited strictly to disapproving a rate or, under very limited circumstances set forth in the statute, approving it. I look at the proposed overall rates generated by the rate filing viewed as a whole in determining whether a company's proposed rates are excessive for the insurance provided," Burnes wrote.
She further explained how her approach under managed competition differs from that taken in the past in her discussion of the Commerce profit provision:.
"It is not my task to look at aggregate industrywide data for the purpose of developing an underwriting profits provision that reasonably reflects the average financial needs of a mythical 'Every Company,' but is specific to none."
Her analyses of the expense and loss trends provision used similar language.
The attorney general had attacked the inclusion of contingent commissions for agents as "creating serious potential conflicts of interest and leading to anticompetitive effects such as the steering of business away from more cost effective carriers." Coakley's lawyers had also argued that because decisions fixing and establishing rates did not allow them to be included, contingent commissions should continue to be rejected in a competitive environment.
But Burnes said that such past decisions are immaterial to the current situation and since such commissions are legal, if insurers decide they want to pay them in a competitive market, they can.
"Contingent commissions now are one basis for legitimate competition in the industry. Indeed, that is why the Division's rate filing instructions explicitly provide for the possibility of such an expense. It is neither my role, nor the role of the Attorney General, to decide what expenses a company should incur in a competitive insurance market provided no such expenses violate the law. Companies that unwisely spend money will enjoy less success in the market, and this experience alone will alter future conduct," Burnes wrote.
Note: Plans submitted by all admitted carriers have now been approved. Contact us for more information.
Insurance Journal
The two largest auto insurance writers in Massachusetts have been given the green light to use the rates they filed for 2008 in rulings that characterize the state attorney general's objections as "irrelevant" in the state's new competitive marketplace.
The rulings also preserve contingent commissions for agents.
Massachusetts Insurance Commissioner Nonnie Burnes has ruled in favor of Commerce Insurance and Safety Insurance over the protests of Massachusetts Attorney General Martha Coakley, whose lawyers had tried to persuade Burnes that items contained in the two insurers' rate filings led to rates that were excessive even though they both filed for overall decreases.
The rulings mean the two insurers may proceed to market using their filings, which called for an average rate decrease of 8.1 percent by Commerce and an average 6.9 percent cut by Safety.
Commerce is the largest auto insurer with 31.6 percent market share, while Safety ranks second with 11.2 percent.
In declining to disapprove the insurers' rate filings, Burnes also handed independent agents' a victory by upholding the inclusion of contingent commissions as part of the rate filings. Coakley's team had argued that contingent commissions should not have been part of the rates.
Until this year, auto insurers had their rates fixed and established by the insurance commissioner. But beginning in April, 2008, insurers are being allowed to compete using their own rates under a new managed competition system. Insurers file individual rates which become effective unless the commissioner disapproves them.
The attorney general has the right to trigger rate hearings on individual insurer rate filings she deems excessive, which Coakley did in the cases of Commerce and Safety, but the final decisions rest with the commissioner.
Coakley objected to provisions for profit, expenses including contingent commissions, and loss trends used by the two insurers in their rates.
But Burnes dismissed the AG's entire analysis, ruling in favor of the insurers on each provision. Burnes suggested that while the AG's approach might have worked under the previous fix-and-establish system, it was irrelevant under the new managed competition system and that the AG "fails to recognize" that the rules have changed.
Burnes said that while the attorney general wants to challenge individual provisions of rates, as was done under the previous system, a competitive system requires a broader view.
"I do not set the rates under c. 175E [the rate statute]. My authority is limited strictly to disapproving a rate or, under very limited circumstances set forth in the statute, approving it. I look at the proposed overall rates generated by the rate filing viewed as a whole in determining whether a company's proposed rates are excessive for the insurance provided," Burnes wrote.
She further explained how her approach under managed competition differs from that taken in the past in her discussion of the Commerce profit provision:.
"It is not my task to look at aggregate industrywide data for the purpose of developing an underwriting profits provision that reasonably reflects the average financial needs of a mythical 'Every Company,' but is specific to none."
Her analyses of the expense and loss trends provision used similar language.
The attorney general had attacked the inclusion of contingent commissions for agents as "creating serious potential conflicts of interest and leading to anticompetitive effects such as the steering of business away from more cost effective carriers." Coakley's lawyers had also argued that because decisions fixing and establishing rates did not allow them to be included, contingent commissions should continue to be rejected in a competitive environment.
But Burnes said that such past decisions are immaterial to the current situation and since such commissions are legal, if insurers decide they want to pay them in a competitive market, they can.
"Contingent commissions now are one basis for legitimate competition in the industry. Indeed, that is why the Division's rate filing instructions explicitly provide for the possibility of such an expense. It is neither my role, nor the role of the Attorney General, to decide what expenses a company should incur in a competitive insurance market provided no such expenses violate the law. Companies that unwisely spend money will enjoy less success in the market, and this experience alone will alter future conduct," Burnes wrote.
Note: Plans submitted by all admitted carriers have now been approved. Contact us for more information.
Tuesday, January 22, 2008
LETTER: Industry could be winner on auto insurance
Industry could be winner on auto insurance
More on SouthCoastToday.com re: Rep. Koczera's concerns from the Legislative Director of MASSPIRG
"Rep. Koczera has good reason for concern about how the new deregulated auto insurance system will impact consumers.
While not completely final, here is what we know already:
First, average rates will be higher under the new plan vs. the current plan. Despite its flaws, our existing auto insurance system produced a 21 percent decrease in rates over the last three years and would have cut rates by at least 11 percent next year, according to both our analyses of rates over the last 10 years and the attorney general's office.
Under the new system, the average rate decrease is about 7 percent based on the insurers' estimates of the effect of their filings. Gov. Patrick's commissioner of insurance denied the attorney general access to information that could have determined whether these estimates are inflated, so even the 7 percent figure is suspect. In any case, the net result on the average premium under the new system compared to our regulated one, is an average increase in rates of at least 4 percent.
Second, while the commissioner did prohibit insurers from using unfair and socioeconomic factors like credit scores and education to set premiums, she did not prevent them from using proxies for those banned factors. And just last week the commissioner prohibited the attorney general from presenting evidence showing that certain rating factors proposed by the state's largest auto insurer were unfair to consumers.
Unfortunately, it does not come as a surprise that the real winners of the deregulated auto insurance industry are the insurers — not the consumers. When was the last time you saw an industry push for changes that would benefit the consumer over the industry? "
Deirdre Cummings
Legislative Director
MASSPIRG
Boston
More on SouthCoastToday.com re: Rep. Koczera's concerns from the Legislative Director of MASSPIRG
"Rep. Koczera has good reason for concern about how the new deregulated auto insurance system will impact consumers.
While not completely final, here is what we know already:
First, average rates will be higher under the new plan vs. the current plan. Despite its flaws, our existing auto insurance system produced a 21 percent decrease in rates over the last three years and would have cut rates by at least 11 percent next year, according to both our analyses of rates over the last 10 years and the attorney general's office.
Under the new system, the average rate decrease is about 7 percent based on the insurers' estimates of the effect of their filings. Gov. Patrick's commissioner of insurance denied the attorney general access to information that could have determined whether these estimates are inflated, so even the 7 percent figure is suspect. In any case, the net result on the average premium under the new system compared to our regulated one, is an average increase in rates of at least 4 percent.
Second, while the commissioner did prohibit insurers from using unfair and socioeconomic factors like credit scores and education to set premiums, she did not prevent them from using proxies for those banned factors. And just last week the commissioner prohibited the attorney general from presenting evidence showing that certain rating factors proposed by the state's largest auto insurer were unfair to consumers.
Unfortunately, it does not come as a surprise that the real winners of the deregulated auto insurance industry are the insurers — not the consumers. When was the last time you saw an industry push for changes that would benefit the consumer over the industry? "
Deirdre Cummings
Legislative Director
MASSPIRG
Boston
Driving Safely When the Snow Sticks
By Dan Zak
I learned to drive in wintry weather by growing up in Buffalo, which is the same thing as saying, "I learned to surf by growing up on the North Shore of Oahu." Freezing rain, fresh powder, whiteouts, downed branches coated with ice -- I've piloted a vehicle through almost every winter climatological situation.
Many Washington residents who are transplants from more temperate regions have not. Most of the area's snow falls during January and February, so get ready by considering the following advice from AAA's mid-Atlantic office and Car Guys in Rockville, which offers a semiannual course on hazardous driving geared toward teenagers ( http://www.decisivedriving.com).
Driving in winter is about physics and finesse, says John Townsend, manager of public and government affairs at AAA Mid-Atlantic.
"It's like a ballet," says Townsend, who lives in Prince George's County. "In other words, you almost have to become like an athlete: You don't want to be very tense, and you don't want to be overly confident. But you need to be in a zone. You need to be one with the vehicle. It has to be an extension of your limbs."
So read on. Keep it together. You'll be fine. But first and foremost: If you don't have to drive in wicked weather, stay the heck off the roads.
Before Hitting the Road
Have a snowbrush (with an ice scraper) in your trunk. I mean, obviously, right? But I've seen plenty of people trying to de-ice windshields with credit cards. Not effective.
Check your owner's manual, which may contain tips for driving your vehicle in snow and ice. "You will be surprised at the number of car owners who never look at those pages," Townsend says. "It is the last thing on their minds."
Pack an emergency kit and keep it in your vehicle throughout the winter: blankets, a sleeping bag, gloves, hats, wrapped nonperishable food (such as granola bars), bottled water, any medication you might need, a charged cellphone and the number for your insurance company's towing service or AAA. A sudden snowstorm can strand you, so be prepared for cold, hunger and the need to call for help.
Make certain your tires are properly inflated. Heck, do this regardless of the time of year.
Try to keep your gas tank at least half full to avoid running out of gas if you're snarled in traffic or stranded. (You need gas to keep the heat on, after all.) Also, this helps prevent a frozen gas line.
Practice. When it snows, find a nearby empty parking lot and get a feel for how your vehicle handles. Take note of how the brakes react on ice, how you need to alter or steady your steering on slick turns, and so on. "You have to learn it and feel it," says Aryan Azarsa, owner of Car Guys. "You can't sit behind a laptop and become a great driver. You actually have to do it."
Behind the Wheel
Slow down. Traction control, anti-lock brakes and ot her winter features are great, but they are no substitute for containing your speed. "People think anti-lock brakes are good for as fast as you go, but really it's only good up to 40 miles an hour," Azarsa says. "You may have traction control, but if you add too much speed, it's still rubber against asphalt."
Accelerate and decelerate slowly. Applying the gas gingerly is the best method for retaining traction and avoiding skids. Don't feel rushed to get going. Giving yourself more room to stop will allow you to brake more gently (and thereby avoid sliding).
Increase the distance between you and the car ahead. It should take at least eight seconds for you to pass the same spot on the road. That means no tailgating.
Use the threshold braking method, whether or not you have anti-lock brakes: Keep your heel on the floor and use the ball of your foot to apply firm, steady pressure on the brake.
Don't stop if you can avoid it. If you can slow enough to keep rolling until a stoplight changes, do it. There's a big difference in the amount of inertia it takes to accelerate from a full stop and the amount it takes to accelerate while rolling. It could be the difference between spinning your wheels and effortlessly resuming normal speed.
If you skid, always look and steer where you want to go. Don't try to rock the steering wheel or overcorrect.
Don't go all Chuck Norris on a hill. You'll spin your wheels if you apply extra gas on snowy roads. Try to get a little momentum before you reach the hill and let it carry you up. As you reach the top, reduce your speed and go down the hill as slowly as possible.
That said, don't be a nervous Nellie on a hill. If you get nervous, just keep moving. Don't brake on a hill unless you come to a stop sign or a light. If you must stop, tread tentatively. "The worst thing to do is step on the gas and break traction," says Lon Anderson, director of public and government affairs at AAA Mid-Atlantic. "You don't want to start by spinning. The best hope for getting going is a very, very slow and gentle beginning." If your wheels keep spinning, sometimes the only option is to reverse (if possible) back downhill, gain traction on level ground, then make another run at the hill. Or simply find another route.
Be doubly cautious in an SUV. Since they can weigh up to two to three times as much as a typical car, SUVs need more time to stop and have a higher center of gravity (meaning they're likelier than a sedan to tip over when negotiating a curve or a lane change on an ice-covered road). If you drive an SUV, brake earlier but gently and avoid jerky steering motions that can send the vehicle sliding.
If you drive a pickup truck or any other rear-wheel-drive car, place 60-pound bags of sand in the truck bed over the rear axles or the spot above the rear wheels to distribute the weight and prevent the back wheels from spinning.
Friday, January 18, 2008
Don't cut corners on insurance for your company
Scripps Howard News Service
BY STEPHEN WINDHAUS
Over the years, many of my clients have purposely excluded insurance expense in the business planning process. Most were seeking outside capital investment, and they wanted to keep startup costs as low as possible. They soon learned no banker or venture capitalist is going to invest in your business, regardless of how attractive it may be, unless insurance is included. Even if the company doesn't need capital, there are certain conditions you do not want to face without insurance. Property loss, business interruption and liability are three good reasons to consider coverage.
PROTECT YOUR PROPERTY
The first form of coverage that comes to mind is property insurance for your building, inventory, equipment, machinery and vehicles. However, you want to pay close attention to the coverage offered. Do not assume that simply because the company owns no building, machinery or product inventory, that this form of coverage is not necessary. Other forms of property include vehicles, office equipment, furniture and cash (in the case of robbery). There are two types of property insurance coverage — standard and special, or all-risk. Standard insurance will cover each particular class of property. In other words, you would have to secure a policy for each category of property. Special, or all-risk coverage is a comprehensive policy that addresses all categories of property in a broader range of loss conditions.
Property insurance begins with you creating a list of all tangible assets, the present, appraised value and salvage value of each item. Submit this list to the insurance agent for review to insure the best of coverage at the lowest possible premium.
And here's a "heads up" for home-based business, including sole proprietors. The cost of home insurance is rising in many parts of the country. Make sure your agent examines that policy to avoid over-insurance. The home policy just may cover part of your business property.
WHAT HAPPENS WHEN THE LIGHTS GO OUT — BUSINESS INTERRUPTION
I have written about preparing the business for natural and manmade disasters. There are many things you can do to protect property and company data, but what happens when the business is interrupted for days, weeks or months because of a wildfire, hurricane, tornado or some other form of disaster. Just ask the business owners in New Orleans how long it has taken to open the doors and generate sales after Hurricane Katrina. A solution to this cash-flow nightmare is business interruption insurance. You can be certain the flood (forgive the pun) of natural disasters in recent years, combined with some recent predictions, that lenders and entrepreneurs alike are taking a closer look at this form of insurance.
LIABILITY
Generally, it is a common decision at startup to incorporate the business to protect assets from liability loss. But what is one to do when faced with legal responsibility from harm caused to others. This can result from actions or inactions by you or your employees that result in bodily injury or property damage It could be due to defective products, bad service or installation actions. With all due respect to the legal system, there are times when one lawyer conducts a better job than another. Innocence is no guarantee of winning the case. And how many times has a lawyer decided to settle out of court to avoid excess legal expenses? Regardless of guilt or innocence, you want to consider liability coverage.
SHOP AND COMPARE
My insurance needs have been serviced by only one agent in the last 18 years. Fortunately, he has taken good care of me, but don't think I haven't gone out to compare prices and coverage. Loyalty is a wonderful character trait, but business is business. You need to insure getting the best bang for the buck. Shop around and compare the premium costs to the coverage provided. And please stay within your budget.
And talk with an insurance broker who carries commercial liability policies, to see if there are some tailored to your industry or profession.
Stephen Windhaus is a small business consultant based in Port St. Lucie. You can contact him at steve@windhaus.com or (772) 871-0585.
BY STEPHEN WINDHAUS
Over the years, many of my clients have purposely excluded insurance expense in the business planning process. Most were seeking outside capital investment, and they wanted to keep startup costs as low as possible. They soon learned no banker or venture capitalist is going to invest in your business, regardless of how attractive it may be, unless insurance is included. Even if the company doesn't need capital, there are certain conditions you do not want to face without insurance. Property loss, business interruption and liability are three good reasons to consider coverage.
PROTECT YOUR PROPERTY
The first form of coverage that comes to mind is property insurance for your building, inventory, equipment, machinery and vehicles. However, you want to pay close attention to the coverage offered. Do not assume that simply because the company owns no building, machinery or product inventory, that this form of coverage is not necessary. Other forms of property include vehicles, office equipment, furniture and cash (in the case of robbery). There are two types of property insurance coverage — standard and special, or all-risk. Standard insurance will cover each particular class of property. In other words, you would have to secure a policy for each category of property. Special, or all-risk coverage is a comprehensive policy that addresses all categories of property in a broader range of loss conditions.
Property insurance begins with you creating a list of all tangible assets, the present, appraised value and salvage value of each item. Submit this list to the insurance agent for review to insure the best of coverage at the lowest possible premium.
And here's a "heads up" for home-based business, including sole proprietors. The cost of home insurance is rising in many parts of the country. Make sure your agent examines that policy to avoid over-insurance. The home policy just may cover part of your business property.
WHAT HAPPENS WHEN THE LIGHTS GO OUT — BUSINESS INTERRUPTION
I have written about preparing the business for natural and manmade disasters. There are many things you can do to protect property and company data, but what happens when the business is interrupted for days, weeks or months because of a wildfire, hurricane, tornado or some other form of disaster. Just ask the business owners in New Orleans how long it has taken to open the doors and generate sales after Hurricane Katrina. A solution to this cash-flow nightmare is business interruption insurance. You can be certain the flood (forgive the pun) of natural disasters in recent years, combined with some recent predictions, that lenders and entrepreneurs alike are taking a closer look at this form of insurance.
LIABILITY
Generally, it is a common decision at startup to incorporate the business to protect assets from liability loss. But what is one to do when faced with legal responsibility from harm caused to others. This can result from actions or inactions by you or your employees that result in bodily injury or property damage It could be due to defective products, bad service or installation actions. With all due respect to the legal system, there are times when one lawyer conducts a better job than another. Innocence is no guarantee of winning the case. And how many times has a lawyer decided to settle out of court to avoid excess legal expenses? Regardless of guilt or innocence, you want to consider liability coverage.
SHOP AND COMPARE
My insurance needs have been serviced by only one agent in the last 18 years. Fortunately, he has taken good care of me, but don't think I haven't gone out to compare prices and coverage. Loyalty is a wonderful character trait, but business is business. You need to insure getting the best bang for the buck. Shop around and compare the premium costs to the coverage provided. And please stay within your budget.
And talk with an insurance broker who carries commercial liability policies, to see if there are some tailored to your industry or profession.
Stephen Windhaus is a small business consultant based in Port St. Lucie. You can contact him at steve@windhaus.com or (772) 871-0585.
Wednesday, January 16, 2008
LETTER: Koczera wrong on auto insurance
Courtesy of SouthCoastToday.com
January 15, 2008 8:40 PM
It is unfortunate that responsible state policymakers continue to rely upon scare tactics and misinformation to oppose the efforts of the Patrick administration to reform the antiquated and anti-consumer Massachusetts auto insurance system. Rep. Robert Koczera's recent op-ed piece ("Auto insurance reform discriminates," Jan. 11) disappointingly relies upon such arguments.
Rep. Koczera is simply wrong that good drivers with spotless records, who are assigned to a company by the Massachusetts assigned risk plan, will not receive the benefits of lower rates. It is illegal for a company to charge such an assigned good driver any more than their policy premium would be were they insured by that company voluntarily.
Rep. Koczera ignores the fact that good drivers in Acushnet, for example, have been subsidizing bad drivers in New Bedford, and vice versa, under the present system, but has not previously found this objectionable.
Driving record is, in fact, a significant factor in the decision all companies make in offering rates, but even staunch opponents of competition in the Legislature acknowledge the impracticality of an auto insurance system based upon a single factor. That said, all the objectionable socioeconomic factors listed by Rep. Koczera have, in fact, been banned for use in determining rates and in underwriting policies.
Real competition, with more companies, more products and more consumer choices, necessitates a regulatory playing field that resembles at least modestly the playing field in the other 49 states of the nation. It is no accident that other big states, like New Jersey and Texas, scrapped their state-set systems in favor of competition and saw more companies compete and better rate offerings across the board.
Consumers can anticipate the same results here in Massachusetts, so long as well-intended but wrong policymakers do not stand in the way of the meaningful reform that the Patrick administration is bringing to the commonwealth's auto insurance system.
James T. Harrington
Executive Director
Massachusetts Insurance Federation
The writer lives in Dartmouth.
January 15, 2008 8:40 PM
It is unfortunate that responsible state policymakers continue to rely upon scare tactics and misinformation to oppose the efforts of the Patrick administration to reform the antiquated and anti-consumer Massachusetts auto insurance system. Rep. Robert Koczera's recent op-ed piece ("Auto insurance reform discriminates," Jan. 11) disappointingly relies upon such arguments.
Rep. Koczera is simply wrong that good drivers with spotless records, who are assigned to a company by the Massachusetts assigned risk plan, will not receive the benefits of lower rates. It is illegal for a company to charge such an assigned good driver any more than their policy premium would be were they insured by that company voluntarily.
Rep. Koczera ignores the fact that good drivers in Acushnet, for example, have been subsidizing bad drivers in New Bedford, and vice versa, under the present system, but has not previously found this objectionable.
Driving record is, in fact, a significant factor in the decision all companies make in offering rates, but even staunch opponents of competition in the Legislature acknowledge the impracticality of an auto insurance system based upon a single factor. That said, all the objectionable socioeconomic factors listed by Rep. Koczera have, in fact, been banned for use in determining rates and in underwriting policies.
Real competition, with more companies, more products and more consumer choices, necessitates a regulatory playing field that resembles at least modestly the playing field in the other 49 states of the nation. It is no accident that other big states, like New Jersey and Texas, scrapped their state-set systems in favor of competition and saw more companies compete and better rate offerings across the board.
Consumers can anticipate the same results here in Massachusetts, so long as well-intended but wrong policymakers do not stand in the way of the meaningful reform that the Patrick administration is bringing to the commonwealth's auto insurance system.
James T. Harrington
Executive Director
Massachusetts Insurance Federation
The writer lives in Dartmouth.
Tuesday, January 15, 2008
Sunday, January 13, 2008
Mass. Insurance Chief, AG Differ Over How to Regulate Auto Rates
Massachusetts Insurance Commissioner Nonnie Burnes and Attorney General Martha Coakley are at odds over how best to regulate the state's new competitive auto rates.
Coakley thinks some insurers are being stingy with their rate cuts and wants to dig deeply into individual insurance company rate filings by obtaining background documents from the carriers.
Burnes say she's got everything under control and Coakley's tactics would only delay the day when consumers enjoy the fruits of a competitive system.
Burnes appears intent on keeping the rate approval process moving forward so carriers can begin marketing their new rates in time for the April 1 start date for competitive rating.
The rates for 14 of the 19 insurers writing private passenger auto have been approved after some review and revisions. But the rates for a few other insurers, including some of the larger writers, remain under scrutiny.
Hearings began this week into the rates of Commerce, the state's largest auto insurer. Hearings into the filings of Arbella Mutual Insurance Co., Safety Insurance Co., Premier Insurance Co. of Massachusetts, and Hanover Insurance Group are scheduled for later this month.
The insurance department has already approved the filings for Arbella and Safety but they are being further reviewed at Coakley's insistence.
Commerce has filed for an average decrease of 6 percent. Coakley claims the company could lower rates more than that.
The different approaches of the two public officials have been on display in recent legal moves and at a hearing on Commerce's rates this week in Boston.
At the hearing, Burnes oversaw questioning of Commerce officials by Assistant Attorney General Peter Leight. She appeared impatient with his lengthy questioning, at one point remarking that motorists are "never going to get decent rates" if the state prolongs the process.
The differences between the two also played out in legal maneuvering by Burnes, a former judge, and Coakley, a former prosecutor.
Coakley's office had wanted more ammunition to question officials of Commerce and the other insurers about their ratemaking. The attorney general had first sought to obtain background materials from Commerce by asserting the legal right of discovery. After Burnes, rejected that assertion, Coakley issued subpoenas to Commerce for certain documents. Burnes also blocked that move.
Coakley and consumer advocates say Burnes' moves could restrict her agency's ability to represent consumers in rate hearings.
"Our goal in calling for hearings on Commerce's and other insurers' rate filings was to bring transparency to the rate-setting process under the new managed competition system," Coakley said. "We are very concerned that our office's inability to acquire appropriate information is likely to render the hearings ineffective and does a disservice to consumers."
This is not Coakley's only attempt to expand her office's consumer advocacy reach. Legislation that included a provision to give the attorney general the power of discovery died in the Legislature last session, although it could be revived.
The Massachusetts Association of Insurance Agents, opposed that legislation. Frank Mancini, president and chief executive officer of the trade group, said the denial of discovery was a "victory for consumers and agents" for several reasons.
First, he said, the resulting delays brought about by discovery could have meant that the insurers with rates subject to hearings would not have been able to compete for business with their lower 2008 rates come April but would have had to use their higher 2007 rates. Given that the carriers under review represent almost 40 percent of the marketplace, that could have denied consumers the benefits of competition and put those carriers at a competitive disadvantage, he said.
Also, Mancini said, had Coakley been granted the right of discovery, he believes she would have gone hunting after agent commission data. "I have been telling our members that if that discovery had passed, every one of their commission agreements would have been on Coakley's desk," he told Insurance Journal.
Before the Commerce hearing began, the insurance department officially cleared the filings of four insurers, bringing the total now approved to 14.
"The rates on file have withstood the Division's extensive review process and mark the beginning of a new era of consumer savings and consumer choice in the state's auto insurance market," said Burnes.
The insurance department said it continues to review the proposed rates of the remaining insurers.
See comments on this article in The Insurance Journal
Coakley thinks some insurers are being stingy with their rate cuts and wants to dig deeply into individual insurance company rate filings by obtaining background documents from the carriers.
Burnes say she's got everything under control and Coakley's tactics would only delay the day when consumers enjoy the fruits of a competitive system.
Burnes appears intent on keeping the rate approval process moving forward so carriers can begin marketing their new rates in time for the April 1 start date for competitive rating.
The rates for 14 of the 19 insurers writing private passenger auto have been approved after some review and revisions. But the rates for a few other insurers, including some of the larger writers, remain under scrutiny.
Hearings began this week into the rates of Commerce, the state's largest auto insurer. Hearings into the filings of Arbella Mutual Insurance Co., Safety Insurance Co., Premier Insurance Co. of Massachusetts, and Hanover Insurance Group are scheduled for later this month.
The insurance department has already approved the filings for Arbella and Safety but they are being further reviewed at Coakley's insistence.
Commerce has filed for an average decrease of 6 percent. Coakley claims the company could lower rates more than that.
The different approaches of the two public officials have been on display in recent legal moves and at a hearing on Commerce's rates this week in Boston.
At the hearing, Burnes oversaw questioning of Commerce officials by Assistant Attorney General Peter Leight. She appeared impatient with his lengthy questioning, at one point remarking that motorists are "never going to get decent rates" if the state prolongs the process.
The differences between the two also played out in legal maneuvering by Burnes, a former judge, and Coakley, a former prosecutor.
Coakley's office had wanted more ammunition to question officials of Commerce and the other insurers about their ratemaking. The attorney general had first sought to obtain background materials from Commerce by asserting the legal right of discovery. After Burnes, rejected that assertion, Coakley issued subpoenas to Commerce for certain documents. Burnes also blocked that move.
Coakley and consumer advocates say Burnes' moves could restrict her agency's ability to represent consumers in rate hearings.
"Our goal in calling for hearings on Commerce's and other insurers' rate filings was to bring transparency to the rate-setting process under the new managed competition system," Coakley said. "We are very concerned that our office's inability to acquire appropriate information is likely to render the hearings ineffective and does a disservice to consumers."
This is not Coakley's only attempt to expand her office's consumer advocacy reach. Legislation that included a provision to give the attorney general the power of discovery died in the Legislature last session, although it could be revived.
The Massachusetts Association of Insurance Agents, opposed that legislation. Frank Mancini, president and chief executive officer of the trade group, said the denial of discovery was a "victory for consumers and agents" for several reasons.
First, he said, the resulting delays brought about by discovery could have meant that the insurers with rates subject to hearings would not have been able to compete for business with their lower 2008 rates come April but would have had to use their higher 2007 rates. Given that the carriers under review represent almost 40 percent of the marketplace, that could have denied consumers the benefits of competition and put those carriers at a competitive disadvantage, he said.
Also, Mancini said, had Coakley been granted the right of discovery, he believes she would have gone hunting after agent commission data. "I have been telling our members that if that discovery had passed, every one of their commission agreements would have been on Coakley's desk," he told Insurance Journal.
Before the Commerce hearing began, the insurance department officially cleared the filings of four insurers, bringing the total now approved to 14.
"The rates on file have withstood the Division's extensive review process and mark the beginning of a new era of consumer savings and consumer choice in the state's auto insurance market," said Burnes.
The insurance department said it continues to review the proposed rates of the remaining insurers.
See comments on this article in The Insurance Journal
Thursday, January 10, 2008
First auto insurance rate-setting hearing opens
By Jeffrey Krasner
Globe Staff / January 10, 2008
Insurance Commissioner Nonnie S. Burnes yesterday kicked off the first rate-setting hearing under a new auto insurance system that allows insurers to set their own rates, subject to government oversight. Attorney General Martha Coakley had called for the hearing to examine rates filed by Commerce Insurance of Webster, the state's largest auto insurer.....read the full article here.
Globe Staff / January 10, 2008
Insurance Commissioner Nonnie S. Burnes yesterday kicked off the first rate-setting hearing under a new auto insurance system that allows insurers to set their own rates, subject to government oversight. Attorney General Martha Coakley had called for the hearing to examine rates filed by Commerce Insurance of Webster, the state's largest auto insurer.....read the full article here.
Wednesday, January 9, 2008
R.I. firm offers policies on Cape, coastal areas
By Kimberly Blanton
Globe Staff / January 9, 2008
Globe Staff / January 9, 2008
Click here to read about the Narragansett Bay Insurance Company - an option for homeowners who live in coastal areas.
To obtain a quote from Narragansett Bay Insurance Company, contact The Howes Insurance Agency.
Tuesday, January 8, 2008
Mass. AG Sues Great American For Bid-Rigging
BY DANIEL HAYS
NU Online News Service, Jan. 7, 3:41 p.m. EST
The Massachusetts Attorney General’s Office has filed a lawsuit against Cincinnati-based Great American Insurance Group, alleging it rigged an insurance bid with a broker to defraud a Norwood, Mass.-based technology firm.
Reacting to Friday’s action--filed at Suffolk Superior Court in Boston against Great American and its Chicago-based subsidiary, Professional Risk Brokers--the insurer said it denied wrongdoing and would fight the charges.
The announcement of the action by Attorney General Martha Coakley said she was seeking a court order prohibiting the company from engaging further in unfair and deceptive business practices, along with restitution, attorneys’ fees and civil penalties up to $5,000.
The state’s complaint charges that in 2004, at the request of insurance broker Marsh Inc.--part of Marsh & McLennan Companies--Great American submitted a fake and intentionally uncompetitive quote to semi-conductor manufacturer Analog Devices.
According to the attorney general’s statement and complaint, Great American allegedly submitted a fake $450,000 bid to make a $400,000 bid from American International Group for a $25 million layer of insurance look competitive, and Marsh reciprocated by steering another one of Analog Devices’ insurance policies to Great American at a pre-determined price of $60,000.
The lawsuit cited as evidence internal Marsh e-mails, and e-mails between Marsh and Great American’s PRB unit.
Great American is the latest in a long list of insurance carriers accused of rigging bids with Marsh and paying the brokerage off with hefty commissions for business that was sent its way.
In 2005, the New York-based brokerage, following investigation by the New York Attorney General’s Office into Marsh’s commercial insurance business practices, agreed to pay $850 million into a restitution fund to repay injured clients and stop taking contingent commissions, which allegedly served as kickbacks.
Ms. Coakley’s office said insurers such as Great American paid Marsh lucrative contingent commissions based on the volume of business placed with them.
The state’s suit is being handled by attorneys for the attorney general’s Insurance and Financial Services Division and Health Care Division.
Great American representatives said the carrier was “disappointed” a suit was filed over “one quotation for insurance coverage made in the spring of 2004 and contingent commission payments made to the producer for the account.”
“Great American's conduct in issuing that quote was lawful,” the carrier added. "The Company has cooperated with the Attorney General's investigation and has tried for an extended period of time to reach resolution of the issue without litigation.”
The firm said it had “resolved and been released from any potential issue” with Analog Devices. However, the state’s complaint said the monies involved in that settlement “do not represent the full harm suffered by Analog Devices, nor the full ill-gotten-gains of Great American.” The settlement amount was not disclosed.
Great American said it “believes that the demands of the Attorney General's Office have been unreasonable. Thus, the Company intends to vigorously defend itself against the Attorney General's allegations."
Members of the Great American Insurance Group are subsidiaries of American Financial Group Inc., based in Cincinnati.
NU Online News Service, Jan. 7, 3:41 p.m. EST
The Massachusetts Attorney General’s Office has filed a lawsuit against Cincinnati-based Great American Insurance Group, alleging it rigged an insurance bid with a broker to defraud a Norwood, Mass.-based technology firm.
Reacting to Friday’s action--filed at Suffolk Superior Court in Boston against Great American and its Chicago-based subsidiary, Professional Risk Brokers--the insurer said it denied wrongdoing and would fight the charges.
The announcement of the action by Attorney General Martha Coakley said she was seeking a court order prohibiting the company from engaging further in unfair and deceptive business practices, along with restitution, attorneys’ fees and civil penalties up to $5,000.
The state’s complaint charges that in 2004, at the request of insurance broker Marsh Inc.--part of Marsh & McLennan Companies--Great American submitted a fake and intentionally uncompetitive quote to semi-conductor manufacturer Analog Devices.
According to the attorney general’s statement and complaint, Great American allegedly submitted a fake $450,000 bid to make a $400,000 bid from American International Group for a $25 million layer of insurance look competitive, and Marsh reciprocated by steering another one of Analog Devices’ insurance policies to Great American at a pre-determined price of $60,000.
The lawsuit cited as evidence internal Marsh e-mails, and e-mails between Marsh and Great American’s PRB unit.
Great American is the latest in a long list of insurance carriers accused of rigging bids with Marsh and paying the brokerage off with hefty commissions for business that was sent its way.
In 2005, the New York-based brokerage, following investigation by the New York Attorney General’s Office into Marsh’s commercial insurance business practices, agreed to pay $850 million into a restitution fund to repay injured clients and stop taking contingent commissions, which allegedly served as kickbacks.
Ms. Coakley’s office said insurers such as Great American paid Marsh lucrative contingent commissions based on the volume of business placed with them.
The state’s suit is being handled by attorneys for the attorney general’s Insurance and Financial Services Division and Health Care Division.
Great American representatives said the carrier was “disappointed” a suit was filed over “one quotation for insurance coverage made in the spring of 2004 and contingent commission payments made to the producer for the account.”
“Great American's conduct in issuing that quote was lawful,” the carrier added. "The Company has cooperated with the Attorney General's investigation and has tried for an extended period of time to reach resolution of the issue without litigation.”
The firm said it had “resolved and been released from any potential issue” with Analog Devices. However, the state’s complaint said the monies involved in that settlement “do not represent the full harm suffered by Analog Devices, nor the full ill-gotten-gains of Great American.” The settlement amount was not disclosed.
Great American said it “believes that the demands of the Attorney General's Office have been unreasonable. Thus, the Company intends to vigorously defend itself against the Attorney General's allegations."
Members of the Great American Insurance Group are subsidiaries of American Financial Group Inc., based in Cincinnati.
Monday, January 7, 2008
Social insecurity: Web sites teem with ID numbers
Many records posted online
By Bill Brubaker
The Washington Post
WASHINGTON -- Colin Powell's Social Security number is out there. So is Troy Aikman's. And that of Maryland Democratic Attorney General Douglas Gansler, among many others.
In an era when government officials from President Bush to local sheriffs warn of the growing dangers of identity theft, the full Social Security numbers of untold numbers of Americans can be found in file rooms and on Web sites run by, well, governments.
"This is very dangerous," Gansler said after learning that his number had been posted on a Maryland government-record site. "You know, a Social Security number is really the fingerprint to somebody's identification."
The Federal Trade Commission has estimated that 8.3 million Americans were victims of identity theft in 2005, the most recent for which data are available. But the crown jewel in identity theft -- the Social Security number -- can be mined easily in the government's own records, creating a measure of social insecurity for millions, according to identity experts.
Social Security numbers are readily available in many courthouses -- in land records and criminal and civil case files -- and also on many government Web sites that serve up public documents with a few clicks of the mouse. From state to state, and even within states, there is little uniformity in how access to the private information in these records is controlled.
A recent spot check found the nine-digit numbers -- introduced in 1936 to track employee earnings and benefits -- on hundreds of land deeds, death certificates, traffic tickets, creditors' filings and other documents related to civil and criminal court cases.
Old records spill secrets
Federal courts have banned the use of Social Security numbers from public documents since 2001. And in recent years, many jurisdictions have enacted laws or made rules barring various types of personal information from being filed with courts or government agencies. Most court Web sites in the Washington region list partial Social Security numbers or none at all.
However, millions of paper records were filed across the United States before the laws and rules took effect. Generally, such records are not covered by the prohibitions. And court clerks said it would be virtually impossible to redact all of the Social Security numbers.
"That's just plain nutty," said Wendy Jones, former acting clerk of Prince William County Circuit Court in Virginia. "I mean, we're talking about hundreds and hundreds of thousands of files in our court alone."
In Virginia's Loudoun County General District Court, Social Security numbers were found on documents filed in 38 of the 48 criminal cases heard by a judge on a recent day. The numbers were typed or written on summonses, arrest warrants, criminal complaints, and jail commitment and release orders, among other documents.
"I don't like it. I don't like it at all," said the court's clerk, Judith Waddell. "Would you like your Social Security number being disclosed to the public? I know I wouldn't."
A one-hour search of Maryland's land-record Web site found the Social Security numbers and signatures of two dozen property owners.
"It's alarming, because the government should be setting the example in really trying to protect people's private information," said state Sen. Jamie Raskin, D-Montgomery. "Look, there's a whole criminal underground now that thrives on stealing people's credit cards and usurping their identity for as long as they can."
4 numbers in 15 minutes
A 15-minute search on the Maryland Department of Assessments and Taxation Web site found Social Security numbers on statements filed by creditors who had financed purchases by four consumers in Waldorf, Cambridge, Bowie and Landover in 2003 and 2004.
A dozen more numbers, including former Secretary of State Powell's, turned up on a Fairfax County, Va., site that requires a $25 monthly subscription fee.
A Texas land-record site had the Social Security number of Aikman, the former Dallas Cowboys quarterback and now a Fox Sports analyst.
Identity fraud has been around for centuries. But widespread use of credit cards and the growth of the Internet have led to a plague that costs businesses and individuals billions of dollars a year. And the problem took a giant leap in the public consciousness after the Sept. 11, 2001, terrorist attacks, when it was revealed that several hijackers had used fraudulently obtained IDs to open bank accounts, rent apartments and board planes.
The federal government responded with a 2004 law that mandated prison sentences for people who use identity theft to commit other crimes and prohibited Social Security numbers from being displayed on newly issued driver's licenses.
Last spring a presidential task force called on federal agencies to "reduce the unnecessary use" of Social Security numbers, which it called "the most valuable commodity for an identity thief."
But with a few keystrokes, anybody can view the deed to Jamie and Sarah Raskin's house in Takoma Park, Md.
Jamie Raskin, a state senator, said that when he refinanced the house in 1994, he gave no thought to the two Social Security numbers printed on his deed. But last March, he got a call from Betty "B.J." Ostergren, an activist from central Virginia who pushes lawmakers and government agencies to take sensitive personal data off state-run Web sites.
"She said, 'Do you know I was able to find your Social Security number and other private information about you and your wife online?' " Raskin said. "I was shocked, and I briefly flipped out, because, you know, these are days when everybody's privacy is under assault."
Helping criminals out
Ostergren's site, thevirginiawatchdog.com, offers dozens of examples of public figures whose Social Security numbers have appeared in public records in recent years. They include former CIA Director Porter Goss.
"The government loves to spoon-feed criminals by putting these dern records on their Web sites," Ostergren said.
Raskin said he plans to call for legislation that would give Maryland residents the right to request redaction of their Social Security numbers from public records.
"The public certainly has the right to know who owns a particular property," he said. "But I don't think the public has the right to know what that person's Social Security number is."
Contact The Howes Insurance Agency for protection against identity theft
By Bill Brubaker
The Washington Post
WASHINGTON -- Colin Powell's Social Security number is out there. So is Troy Aikman's. And that of Maryland Democratic Attorney General Douglas Gansler, among many others.
In an era when government officials from President Bush to local sheriffs warn of the growing dangers of identity theft, the full Social Security numbers of untold numbers of Americans can be found in file rooms and on Web sites run by, well, governments.
"This is very dangerous," Gansler said after learning that his number had been posted on a Maryland government-record site. "You know, a Social Security number is really the fingerprint to somebody's identification."
The Federal Trade Commission has estimated that 8.3 million Americans were victims of identity theft in 2005, the most recent for which data are available. But the crown jewel in identity theft -- the Social Security number -- can be mined easily in the government's own records, creating a measure of social insecurity for millions, according to identity experts.
Social Security numbers are readily available in many courthouses -- in land records and criminal and civil case files -- and also on many government Web sites that serve up public documents with a few clicks of the mouse. From state to state, and even within states, there is little uniformity in how access to the private information in these records is controlled.
A recent spot check found the nine-digit numbers -- introduced in 1936 to track employee earnings and benefits -- on hundreds of land deeds, death certificates, traffic tickets, creditors' filings and other documents related to civil and criminal court cases.
Old records spill secrets
Federal courts have banned the use of Social Security numbers from public documents since 2001. And in recent years, many jurisdictions have enacted laws or made rules barring various types of personal information from being filed with courts or government agencies. Most court Web sites in the Washington region list partial Social Security numbers or none at all.
However, millions of paper records were filed across the United States before the laws and rules took effect. Generally, such records are not covered by the prohibitions. And court clerks said it would be virtually impossible to redact all of the Social Security numbers.
"That's just plain nutty," said Wendy Jones, former acting clerk of Prince William County Circuit Court in Virginia. "I mean, we're talking about hundreds and hundreds of thousands of files in our court alone."
In Virginia's Loudoun County General District Court, Social Security numbers were found on documents filed in 38 of the 48 criminal cases heard by a judge on a recent day. The numbers were typed or written on summonses, arrest warrants, criminal complaints, and jail commitment and release orders, among other documents.
"I don't like it. I don't like it at all," said the court's clerk, Judith Waddell. "Would you like your Social Security number being disclosed to the public? I know I wouldn't."
A one-hour search of Maryland's land-record Web site found the Social Security numbers and signatures of two dozen property owners.
"It's alarming, because the government should be setting the example in really trying to protect people's private information," said state Sen. Jamie Raskin, D-Montgomery. "Look, there's a whole criminal underground now that thrives on stealing people's credit cards and usurping their identity for as long as they can."
4 numbers in 15 minutes
A 15-minute search on the Maryland Department of Assessments and Taxation Web site found Social Security numbers on statements filed by creditors who had financed purchases by four consumers in Waldorf, Cambridge, Bowie and Landover in 2003 and 2004.
A dozen more numbers, including former Secretary of State Powell's, turned up on a Fairfax County, Va., site that requires a $25 monthly subscription fee.
A Texas land-record site had the Social Security number of Aikman, the former Dallas Cowboys quarterback and now a Fox Sports analyst.
Identity fraud has been around for centuries. But widespread use of credit cards and the growth of the Internet have led to a plague that costs businesses and individuals billions of dollars a year. And the problem took a giant leap in the public consciousness after the Sept. 11, 2001, terrorist attacks, when it was revealed that several hijackers had used fraudulently obtained IDs to open bank accounts, rent apartments and board planes.
The federal government responded with a 2004 law that mandated prison sentences for people who use identity theft to commit other crimes and prohibited Social Security numbers from being displayed on newly issued driver's licenses.
Last spring a presidential task force called on federal agencies to "reduce the unnecessary use" of Social Security numbers, which it called "the most valuable commodity for an identity thief."
But with a few keystrokes, anybody can view the deed to Jamie and Sarah Raskin's house in Takoma Park, Md.
Jamie Raskin, a state senator, said that when he refinanced the house in 1994, he gave no thought to the two Social Security numbers printed on his deed. But last March, he got a call from Betty "B.J." Ostergren, an activist from central Virginia who pushes lawmakers and government agencies to take sensitive personal data off state-run Web sites.
"She said, 'Do you know I was able to find your Social Security number and other private information about you and your wife online?' " Raskin said. "I was shocked, and I briefly flipped out, because, you know, these are days when everybody's privacy is under assault."
Helping criminals out
Ostergren's site, thevirginiawatchdog.com, offers dozens of examples of public figures whose Social Security numbers have appeared in public records in recent years. They include former CIA Director Porter Goss.
"The government loves to spoon-feed criminals by putting these dern records on their Web sites," Ostergren said.
Raskin said he plans to call for legislation that would give Maryland residents the right to request redaction of their Social Security numbers from public records.
"The public certainly has the right to know who owns a particular property," he said. "But I don't think the public has the right to know what that person's Social Security number is."
Contact The Howes Insurance Agency for protection against identity theft
Friday, January 4, 2008
By JACK SHEA, Vineyard Gazette
New home construction costs on the Island could increase more than 10 per cent as a result of new state building codes requiring one and two-story buildings to withstand winds of 110 miles per hour beginning Jan. 1.
For some prospective home owners and builders, the changes have already blown away their plans.
Tisbury building inspector Kenneth Barwick said he already has heard from home builders on a budget.
“People have called me to say they cannot afford to go forward,” Mr. Barwick said. “The new rules will significantly accelerate the cost of construction, materials and professional services. The days of pulling the three-bedroom Cape plan out of the closet are over, unfortunately.”
The new building code rules were issued, with last-minute amendments last week, by the state board of building regulations and standards.
The new seventh edition of the state building codes increased structural wind resistance requirements from 90 to 110 mph. The code also created a wind-debris zone one mile inland from mean tide in which houses must be able to handle winds of 110 mph. The new zone could affect the location of new houses relative to the prevailing wind direction and requires more stringent construction methods than houses constructed more than one mile inland.
The new code, four years in the adopting, also increases the requirements for fastening or “tie down” of foundations, walls and roofs as a single unit to reduce wind shear or vertical lift in houses under heavy winds.
Edgartown building inspector Leonard Jason Jr. also noted changes in plumbing and electrical safety wiring and outlets that he said will add some cost to construction.
He said the state also intends to institute new licensing in July for shingling, siding, window installers, roofing and demolition work. A grandfather clause is likely to be included in the license changes, as Mr. Jason reads the prospective license procedures.
Island building inspectors processed a flurry of building permit applications before the end of the year under the sixth edition of the codes and before the new regulations took effect. Harried building inspectors in Edgartown and West Tisbury in particular processed several dozen applications by builders in the final two weeks of 2007 who were seeking to be regulated under the sixth edition building rules.
To complicate matters, the final codes were e-mailed by the state to building inspectors just before they were to take effect.
A principal cost increase for homeowners and builders will come through the cost of windows, which must now be laminated, similar to the glass used in skylights. In some cases, that could double window costs.
Windows typically account for 10 to 18 per cent of construction costs, according to an informal survey of Island builders this week.
Connie O’Doherty, owner of Butterwood Properties Inc., a high-end Edgartown contractor, reported quotes given him for a mid-range standard window would double the cost. Mr. O’Doherty noted, as did several building inspectors, that the changes in window requirements have window makers scrambling to retool in order to meet the new codes.
Despite state extension of the new code deadline from last April 1to Jan. 1, the state did not complete the code until literally at year-end. “The guys the state usually send to educate us are good. I get the feeling they are embarrassed,” Mr. Jason said.
Indeed, additions, amendments and clarifications, many by e-mail, have been trickling across building inspector desks over the past week, frustrating their efforts to answer queries clearly.
For the past week, more detail in the code has become clear as inspectors dealt with analyzing new regulations while processing permits under the old regulations. The complete building code is about 1,600 pages.
West Tisbury building inspector Ernest P. Mendenhall surmised early last week that the code will likely require more services from engineers and architects and more inspection.
“Under these regulations I’ll be at building sites at least once or twice more because of increased regulations with regard to fastening components,” he said.
Mr. Jason and Mr. Barwick concurred. Mr. Barwick noted that newer regulations for small variances in cantilevering, for example, will require an engineer’s stamp, representing a new cost for home builders.
“The code is going to require more engineering and architects, depending on the size of the house,” he said. “Simple repairs and additions will cost more.”
New home construction costs on the Island could increase more than 10 per cent as a result of new state building codes requiring one and two-story buildings to withstand winds of 110 miles per hour beginning Jan. 1.
For some prospective home owners and builders, the changes have already blown away their plans.
Tisbury building inspector Kenneth Barwick said he already has heard from home builders on a budget.
“People have called me to say they cannot afford to go forward,” Mr. Barwick said. “The new rules will significantly accelerate the cost of construction, materials and professional services. The days of pulling the three-bedroom Cape plan out of the closet are over, unfortunately.”
The new building code rules were issued, with last-minute amendments last week, by the state board of building regulations and standards.
The new seventh edition of the state building codes increased structural wind resistance requirements from 90 to 110 mph. The code also created a wind-debris zone one mile inland from mean tide in which houses must be able to handle winds of 110 mph. The new zone could affect the location of new houses relative to the prevailing wind direction and requires more stringent construction methods than houses constructed more than one mile inland.
The new code, four years in the adopting, also increases the requirements for fastening or “tie down” of foundations, walls and roofs as a single unit to reduce wind shear or vertical lift in houses under heavy winds.
Edgartown building inspector Leonard Jason Jr. also noted changes in plumbing and electrical safety wiring and outlets that he said will add some cost to construction.
He said the state also intends to institute new licensing in July for shingling, siding, window installers, roofing and demolition work. A grandfather clause is likely to be included in the license changes, as Mr. Jason reads the prospective license procedures.
Island building inspectors processed a flurry of building permit applications before the end of the year under the sixth edition of the codes and before the new regulations took effect. Harried building inspectors in Edgartown and West Tisbury in particular processed several dozen applications by builders in the final two weeks of 2007 who were seeking to be regulated under the sixth edition building rules.
To complicate matters, the final codes were e-mailed by the state to building inspectors just before they were to take effect.
A principal cost increase for homeowners and builders will come through the cost of windows, which must now be laminated, similar to the glass used in skylights. In some cases, that could double window costs.
Windows typically account for 10 to 18 per cent of construction costs, according to an informal survey of Island builders this week.
Connie O’Doherty, owner of Butterwood Properties Inc., a high-end Edgartown contractor, reported quotes given him for a mid-range standard window would double the cost. Mr. O’Doherty noted, as did several building inspectors, that the changes in window requirements have window makers scrambling to retool in order to meet the new codes.
Despite state extension of the new code deadline from last April 1to Jan. 1, the state did not complete the code until literally at year-end. “The guys the state usually send to educate us are good. I get the feeling they are embarrassed,” Mr. Jason said.
Indeed, additions, amendments and clarifications, many by e-mail, have been trickling across building inspector desks over the past week, frustrating their efforts to answer queries clearly.
For the past week, more detail in the code has become clear as inspectors dealt with analyzing new regulations while processing permits under the old regulations. The complete building code is about 1,600 pages.
West Tisbury building inspector Ernest P. Mendenhall surmised early last week that the code will likely require more services from engineers and architects and more inspection.
“Under these regulations I’ll be at building sites at least once or twice more because of increased regulations with regard to fastening components,” he said.
Mr. Jason and Mr. Barwick concurred. Mr. Barwick noted that newer regulations for small variances in cantilevering, for example, will require an engineer’s stamp, representing a new cost for home builders.
“The code is going to require more engineering and architects, depending on the size of the house,” he said. “Simple repairs and additions will cost more.”
Thursday, January 3, 2008
Mass. High Court Upholds 2006 Home Insurance Hike for FAIR Plan
The Massachusetts Supreme Judicial Court has upheld the 2006 rate increases for the state's homeowners residual market insurer, the FAIR Plan, against a challenge by the attorney general that the increases violated a state law placing caps on increases.
That rate decision in dispute granted the Massachusetts Property Insurance Underwriting Association (or FAIR plan) by then-Commissioner Julianne Bowler a 12.4 percent statewide hike and 25 percent on the Cape effective October 1, 2006.
Attorney General Martha Coakley's office had pursued an appeal of the rate increase that was begun by her predecessor Tom Reilly.
That rate hike was the first since the Massachusetts Legislature amended the FAIR Plan statute in 2004 to eliminate rate caps for the 13 largest share territories by allowing predicted hurricane losses and the cost of reinsurance to be factored into the rate.
The Attorney General had contended that the rates approved by the commissioner exceed the cap on rate increases set by statute, and disputed the commissioner's interpretation that a 2004 amendment authorized her to approve rates that exceed the cap after weighing predicted hurricane losses and costs of catastrophe reinsurance.
Coakley's office had also claimed the commissioner abused her discretion in approving predicted hurricane losses based on the computer generated models relied on by MPIUA.
Since that filing for 2006, the FAIR Plan has requested another 25 percent homeowners insurance rate increase for Cape Cod residents, part of an overall statewide filing seeking a 13.6 percent average rate increase statewide.
The FAIR Plan, which provides coverage to homeowners unable to secure insurance in the private market, insures more than 130,000 homeowners statewide, including a third of all homeowners on Cape Cod.
Coakley expressed concern regarding the 25 percent rate increase for Cape Cod and has recommended a statewide average premium decrease of 18 percent. This proposal includes a 29 percent decrease for residents in Cape Cod and surrounding islands.
That rate decision in dispute granted the Massachusetts Property Insurance Underwriting Association (or FAIR plan) by then-Commissioner Julianne Bowler a 12.4 percent statewide hike and 25 percent on the Cape effective October 1, 2006.
Attorney General Martha Coakley's office had pursued an appeal of the rate increase that was begun by her predecessor Tom Reilly.
That rate hike was the first since the Massachusetts Legislature amended the FAIR Plan statute in 2004 to eliminate rate caps for the 13 largest share territories by allowing predicted hurricane losses and the cost of reinsurance to be factored into the rate.
The Attorney General had contended that the rates approved by the commissioner exceed the cap on rate increases set by statute, and disputed the commissioner's interpretation that a 2004 amendment authorized her to approve rates that exceed the cap after weighing predicted hurricane losses and costs of catastrophe reinsurance.
Coakley's office had also claimed the commissioner abused her discretion in approving predicted hurricane losses based on the computer generated models relied on by MPIUA.
Since that filing for 2006, the FAIR Plan has requested another 25 percent homeowners insurance rate increase for Cape Cod residents, part of an overall statewide filing seeking a 13.6 percent average rate increase statewide.
The FAIR Plan, which provides coverage to homeowners unable to secure insurance in the private market, insures more than 130,000 homeowners statewide, including a third of all homeowners on Cape Cod.
Coakley expressed concern regarding the 25 percent rate increase for Cape Cod and has recommended a statewide average premium decrease of 18 percent. This proposal includes a 29 percent decrease for residents in Cape Cod and surrounding islands.
Wednesday, January 2, 2008
Survey: Teens Want Friends to be Safer on Roads
With motor vehicle accidents claiming between 5,000 and 6,000 teen lives each year, a new survey commissioned by Allstate Insurance reveals that many teens do not take personal responsibility for safe driving and continue to engage in dangerous driving behaviors.
While nearly 90 percent of teens surveyed said they hope their friends will be safer on the road in 2008, just 11 percent included "driving more safely" among their personal New Year's resolutions. One-third (34 percent) of teens surveyed reported being frightened as a passenger because the driver was being careless, but did not say anything to the driver.
"Our survey found that teens are making New Year's resolutions about getting better grades, exercising more and other good things, but far too few are resolving to be safer drivers," said Victoria Dinges, Allstate assistant vice president of Public Social Responsibility and mother of a teen driver. "Car accidents are the leading cause of death for teens in the U.S., and the holidays are among the most dangerous times of the year for teens on the road. Unfortunately, our survey shows that teens have other things on their mind than driving safely."
According Allstate's survey, approximately 40 percent of teens surveyed plan to exercise more and 40 percent hope to improve their grades, while only 11 percent will resolve to drive safer in 2008, ranking dead last in the survey.
Fifty-seven percent of respondents admitted to driving more than 10 miles per hour over the speed limit, 22 percent have raced another vehicle and 19 percent have received a traffic ticket. Eighteen percent of respondents admit to being a passenger in a car being driven by a teen who was under the influence of alcohol or drugs.
Further supporting the importance of peer influence that exists among teen drivers who are willing to break the law yet want their friends to drive safer, respondents were specifically interested in having their friends eliminate unsafe practices including driving without seatbelts (41 percent) and speeding (40 percent). And, while teens may be excited about the new MP3 player their friend as a holiday gift this year, they don't want them distracted by it while driving. More than two-thirds of teens surveyed said they wanted their friends to avoid technology distractions (i.e. texting, talking on a cell phone, and scrolling through an MP3 player) while driving.
"These are alarming results considering every year for the past decade between 5,000 and 6,000 teenagers were killed in motor vehicle accidents. No other hazard or behavior comes close to claiming as many teen lives," Dinges said. "As we reflect on our lives and see what we can be doing better for the upcoming year, encouraging safe driving is a great conversation for parents to hold with their teens. Parental guidance and involvement in these first and defining years is critical for young drivers."
Allstate said a recent study published by the National Institute of Child Health and Human Development indicates intervention materials, such as a parent-teen driving agreement for newly licensed drivers, reduces high-risk driving behaviors such as texting.
The Allstate survey also shows that many teenagers are familiar with drivers contracts and that nearly one third (30 percent) of teens who have heard of these agreements have signed one. The dialogue that the contract opens – dialogue that needs to be sustained between parents and teens – can be just as important as the signed agreement.
"By opening up a dialogue with teens, parents can influence their child's behavior – and nearly half of teens are having 'good conversations' with their parents about the importance of safe driving," said Dinges. "However, the research shows the dialogue needs to be frequent and meaningful; a parent-teen driving contract is a good starting point for these discussions."
Source: Allstate
While nearly 90 percent of teens surveyed said they hope their friends will be safer on the road in 2008, just 11 percent included "driving more safely" among their personal New Year's resolutions. One-third (34 percent) of teens surveyed reported being frightened as a passenger because the driver was being careless, but did not say anything to the driver.
"Our survey found that teens are making New Year's resolutions about getting better grades, exercising more and other good things, but far too few are resolving to be safer drivers," said Victoria Dinges, Allstate assistant vice president of Public Social Responsibility and mother of a teen driver. "Car accidents are the leading cause of death for teens in the U.S., and the holidays are among the most dangerous times of the year for teens on the road. Unfortunately, our survey shows that teens have other things on their mind than driving safely."
According Allstate's survey, approximately 40 percent of teens surveyed plan to exercise more and 40 percent hope to improve their grades, while only 11 percent will resolve to drive safer in 2008, ranking dead last in the survey.
Fifty-seven percent of respondents admitted to driving more than 10 miles per hour over the speed limit, 22 percent have raced another vehicle and 19 percent have received a traffic ticket. Eighteen percent of respondents admit to being a passenger in a car being driven by a teen who was under the influence of alcohol or drugs.
Further supporting the importance of peer influence that exists among teen drivers who are willing to break the law yet want their friends to drive safer, respondents were specifically interested in having their friends eliminate unsafe practices including driving without seatbelts (41 percent) and speeding (40 percent). And, while teens may be excited about the new MP3 player their friend as a holiday gift this year, they don't want them distracted by it while driving. More than two-thirds of teens surveyed said they wanted their friends to avoid technology distractions (i.e. texting, talking on a cell phone, and scrolling through an MP3 player) while driving.
"These are alarming results considering every year for the past decade between 5,000 and 6,000 teenagers were killed in motor vehicle accidents. No other hazard or behavior comes close to claiming as many teen lives," Dinges said. "As we reflect on our lives and see what we can be doing better for the upcoming year, encouraging safe driving is a great conversation for parents to hold with their teens. Parental guidance and involvement in these first and defining years is critical for young drivers."
Allstate said a recent study published by the National Institute of Child Health and Human Development indicates intervention materials, such as a parent-teen driving agreement for newly licensed drivers, reduces high-risk driving behaviors such as texting.
The Allstate survey also shows that many teenagers are familiar with drivers contracts and that nearly one third (30 percent) of teens who have heard of these agreements have signed one. The dialogue that the contract opens – dialogue that needs to be sustained between parents and teens – can be just as important as the signed agreement.
"By opening up a dialogue with teens, parents can influence their child's behavior – and nearly half of teens are having 'good conversations' with their parents about the importance of safe driving," said Dinges. "However, the research shows the dialogue needs to be frequent and meaningful; a parent-teen driving contract is a good starting point for these discussions."
Source: Allstate
Penalties Increase For Residents Without Health Care
Yearly Fines Could Be High
The Associated Press, January 1, 2008
BOSTON -- The cost of not having health insurance in Massachusetts has gone up.
As the new year began, most residents who remain uninsured will face yearly fines that could total as much as $912 for individuals and $1,824 for couples by the end of 2008.
That's according to penalty guidelines unveiled by the Department of Revenue.
Individuals who failed to sign up for health insurance by the end of 2007 faced only a one-time loss of their $219 personal income tax exemption.
The fines are part of an increasingly aggressive approach written into the health care law designed to pressure Massachusetts residents into getting insurance.
It remains unclear how many Massachusetts residents still don't have insurance, but the number could be in the hundreds of thousands.
Those overseeing the law say the state has added about 300,000 Massachusetts residents to the ranks of the insured this year.
The Associated Press, January 1, 2008
BOSTON -- The cost of not having health insurance in Massachusetts has gone up.
As the new year began, most residents who remain uninsured will face yearly fines that could total as much as $912 for individuals and $1,824 for couples by the end of 2008.
That's according to penalty guidelines unveiled by the Department of Revenue.
Individuals who failed to sign up for health insurance by the end of 2007 faced only a one-time loss of their $219 personal income tax exemption.
The fines are part of an increasingly aggressive approach written into the health care law designed to pressure Massachusetts residents into getting insurance.
It remains unclear how many Massachusetts residents still don't have insurance, but the number could be in the hundreds of thousands.
Those overseeing the law say the state has added about 300,000 Massachusetts residents to the ranks of the insured this year.
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