Ask A Houston Insurance Agent

Real Men Read

2012-02-17T12:10:00.002-06:00

Got to read to a Black Middle School class as part of their "Real Men Read" mentor program. Mr Azar has a great class!

2012-01-04T13:58:00.001-06:00

What do you mean my insurance doesn’t cover that? What do you mean I’m not covered? These aren’t questions you want to be asking after you’ve filed a claim. As your Farmers agent, it’s my goal to help you understand the auto coverage you have so you can be sure it’s what you want. States vary in what insurance they require drivers to carry; most require at least liability coverage with minimum limits. Here’s a brief review of the primary types of coverage that may be in your policy. Take a look at it, and then give me a call. We can get together and review your current coverage so you can see whether it’s what you want or if you want to make changes.

Liability

Bodily injury — covers the expenses associated with other people’s injuries or death such as medical expenses, loss of income and pain and suffering cause by you or someone driving your car with your permission, up to a limit chosen by you. Most states require drivers to carry a minimum amount of bodily injury coverage but you may want to consider buying more: If you’re found at fault in a serious accident you could be sued, and higher limits of liability coverage could help protect your assets.

Property damage liability — pays for damage up to a limit chosen by you that you or someone driving your vehicle with your permission may cause to someone else’s property such as damage to someone else’s vehicle, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your vehicle hits.

Medical Payments or Personal Injury Protection (PIP) — pays for medical bills and funeral expenses for you or a passenger injured in an accident while riding in your vehicle, up to a limit chosen by you. It may also cover you or a family member who is a passenger injured in someone else’s vehicle or a pedestrian struck by a vehicle.

Collision — pays for the damage to your vehicle resulting from a collision with another vehicle, object or as a result of flipping over. This coverage is typically required if your vehicle is leased or if you have an outstanding loan on the vehicle.

Comprehensive — helps protect your investment in your vehicle by covering damage resulting from many different kinds of perils including fire, theft, falling objects, riots, storms, earthquakes, floods, and collision with a bird or animal. Like collision coverage, comprehensive coverage generally includes a deductible that you select. This coverage is normally required if your vehicle is leased or if you have an outstanding loan on the vehicle.

Uninsured and Underinsured Motorist Coverage — subject to a limit selected by you, covers injury to you, your family members and your passengers in an accident with a motorist who has no insurance, or a motorist who lacks enough coverage to compensate for the damage caused, or a hit-and-run driver. It also covers you and your family members injured as a pedestrian. Coverage typically includes payment of medical costs, lost wages, pain and suffering.

Uninsured Motorist Property Damage — covers damage to your insured vehicle caused by an uninsured, underinsured, or hit-and-run driver.

I’m here to help
Auto insurance can be confusing and difficult to understand so call me and we can review your coverage and discuss your concerns or questions so you can make an informed decision about what’s appropriate for your situation. It also will give us the opportunity to see whether you might be eligible for any of the discounts Farmers offers. Call me today at 713-688-8669.

The many uses of life insurance

2012-01-04T13:53:00.001-06:00

The many uses of life insurance

Most of us buy life insurance to replace the loss of income that would occur should we die or to create an estate for our loved ones, but there are many other reasons:

People depend on you — you have an aging parent or disabled relative who depends on you for support

Retirement needs — your retirement savings and pension won’t be enough to support your family

Estate planning — you have a large estate and expect to owe estate taxes

Joint debt — you have a substantial joint financial obligation, such as a personal loan for which another person would be legally responsible after your death

If you own a business you may wish to consider life insurance for:

Key person — life insurance can be used to help protect a business from the loss of income and profits caused by the death of a key employee

Business continuation — life insurance can be used to help fund a buy/sell agreement or stock redemption plan to enable a partner or group of employees to buy the business interest of a deceased partner

Business loans — insurance on a key employee or business owner can be used to pay off or help pay down the debts of a business in the event of that individual’s death

Prepare for the unexpectedI can help you analyze your individual situation so you can determine your life insurance requirements and be sure your coverage is appropriate for your needs and your family.

“My dog doesn’t bite” — until it does

2012-01-04T13:50:00.002-06:00

Sometimes even good dogs bite, and when they do, you could be sued. If your dog bites someone, don’t panic. It’s important to remain calm so you can take swift and appropriate action:

Restrain your dog immediately.
Separate it from the scene and confine it.
Seek medical attention immediately.
If you think the injured person needs medical attention call 911.

Call me. If you have personal liability coverage under your Farmers property policy call me and be prepared to give me information about the time and place of the incident and the name and phone number of witnesses and any injured person.
Remember, if you have Farmers property coverage you can always call HelpPoint® Claim Services by Farmers at (800) 435-7764 for assistance when you need it most.

Watch the body languageDogs express their feelings with their bodies just as people do. For instance, a threatening dog may have a wrinkled nose that draws back to reveal its teeth; the hair along the back of its neck may be raised and its ears may lie back; its body may appear tense and the dog may growl or snarl. If your dog is behaving like this, remove him from the scene immediately and confine him. And, always try to avoid any dog displaying any of these signs or acting in a threatening manner.

Federal Flood Insurance Reauthorized Until May 2012

2011-12-28T12:21:00.000-06:00

The federal flood insurance program has been extended until May 31, 2012 under another short-term consolidated appropriations bill (H.R. 2055) passed by the House and Senate and signed into law by President Obama on Dec. 23.

Had the appropriations bill not passed, the National Flood Insurance Program’s authority to issue new or renewal flood insurance policies would have expired at midnight on Dec. 23.

Insurance agents— the Independent Insurance Agents & Brokers of America (Big “I”) — applauded the reauthorization while continuing to press for a longer term authorization and program reforms.

“It is important to note that our work on this important issue is far from over and the next few months provide ample opportunity for Congress to pass long-term extension and reform legislation that provides the necessary certainty for consumers,” said Charles E. Symington Jr., Big “I” senior vice president for government affairs.

Symington noted that Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace; however, for the last few years Congress had only extended the program for short periods, mostly from 30 days to six months.

“Today’s extension, although greatly appreciated, is just a temporary patch,” said John Prible, Big “I” vice president for federal government affairs.

Auto Insurance Claim Costs Rising Again

2011-12-28T12:17:00.000-06:00

Auto insurance claim costs countrywide have recently increased, reversing previous trends of declining or relatively stable costs.

A new report from the Insurance Research Council (IRC), “Trends in Auto Injury Claims, 2011 Edition,” documents auto injury claim trends, both countrywide and by state, using private passenger auto claim data from national and state-level statistical reporting agencies.

Although injury claim severity (the average cost of injury claims) has been increasing steadily in the last several years, much of the increase has been offset by declining claim frequency, which produced relatively stable injury claim costs per insured vehicle, according to the report.

However, recent data indicate that claim frequency, on a countrywide basis, is no longer decreasing. In the case of personal injury protection (PIP) claims, the effect of rising claim severity has been magnified by a simultaneous increase in claim frequency. PIP claim costs per insured vehicle countrywide increased more than 18 percent from 2008 to 2010.

For bodily injury (BI) liability claims, the effect of rising claim severity has been mitigated somewhat by stabilization, rather than an increase, in claim frequency. However, 2010 marks the first year since 1994 that BI claim frequency did not decline.

The report says that much of the deterioration in PIP trends has been concentrated in three of the largest states with no-fault approaches to compensating auto injuries—Florida, Michigan, and New York. In Florida, the average PIP claim cost per insured vehicle in the state jumped 62 percent in just two years (2008-2010). PIP costs per vehicle in Michigan have been increasing rapidly for several years now—rising more than 120 percent over the last decade. The New York system has been on a roller coaster of rising and falling costs driven by a surge in suspected claim abuse in the New York City area, according to IRC.

“These are not encouraging findings for insurers or drivers,” said Elizabeth Sprinkel, senior vice president of The Institutes. “While we hope these findings represent temporary conditions, we can’t be sure that is the case and can’t afford to ignore the factors driving rising claim costs.”

To buy or lease?

2011-12-09T13:18:00.001-06:00

If you’re interested in a new car, the question typically arises: Should I lease or buy? As is often the case, it depends on your individual situation. Many people equate leasing with renting but it may be more useful to consider leasing as financing the use of a vehicle whereas buying with a loan finances the purchase of a vehicle.

Your lifestyle, your priorities
As you think about whether to lease or buy a new vehicle, it’s important to make financial comparisons but it’s also important to consider your lifestyle, your objectives and personal priorities — what’s important to you.

If you …
Enjoy driving a new car every three or four years; want lower monthly payments; want a car that is always under warranty; don’t want to trade or sell used cars; don’t care about building equity in your vehicle; have a predictable lifestyle and drive an average number of miles per year1; properly maintain your cars and are willing to pay more over the long haul to get these benefits, then you may want to consider leasing.

On the other hand, if you …
Value long-term cost savings over lower monthly payments; enjoy owning your vehicle and would like to pay it off and be payment-free for a while; don’t mind the unexpected cost of repairs after the warranty has expired; like to customize your vehicle; drive more than the average number of miles per year and don’t mind higher monthly payments, then you may want to consider buying your vehicle.

Caveat: Lack of flexibility
Some consider the inflexibility of the lease agreement a significant drawback of leasing. If you want or need to terminate your agreement before maturity, you will likely pay a significant penalty for early termination. In many cases, the penalty may equal the remainder of payments due under the agreement. So before you enter into a lease make sure your lifestyle and ability-to-pay are predictable and stable.

Contact me at 713-688-8669 or visit www.farmersagent.com/dlorms

Visit http://www.smartmoney.com/calculator/autos/buy-or-lease-a-car-1302833645461 for more information about leasing. When you decide which option you feel is appropriate for your situation, call me. We can sit down and review your coverage and options so you can be sure you have the insurance you want to go with your new ride.

1According to SmartMoney, the average American driver puts about 12,000 miles per year on his or her car. (http://www.smartmoney.com/calculator/autos/buy-or-lease-a-car-1302833645461)

The Case for Leasing

Allows you to get a new car frequently
Provides short-term affordability
Results in fewer repair bills
Avoids upside-down loans

The Case against Leasing

You don’t own the vehicle
Penalties for early lease termination
Additional charges for excessive mileage and any damage to the vehicle
Must buy or return car at end of lease

Real Men Read

2011-11-17T10:37:00.001-06:00

Reading to a class at Black Middle School as part of their "Real Men Read" mentor program! Black Middle School has great students and faculty!

Just what is the Texas FAIR Plan?

2011-10-20T12:27:00.002-05:00

The Texas Fair Access to Insurance Requirements (FAIR) was formed in response to a lack of homeowners insurance in various regions of the state. The intent of those who drafted the language in the FAIR Plan was make it the market of last resort and not intended to be a competitor with the private homeowners market.

Policies are written by licensed insurance property and casualty insurance agents in the state. Applicants cannot apply for insurance directly through the FAIR Plan. If a consumer has a complaint about the service of an agent they may contact the FAIR Plan Association at P. O. Box 99080, Austin, TX 78709.

To become eligible for coverage, a potential customer must have been declined residential property insurance by at least two insurance companies licensed and writing property insurance in Texas. Further, to be qualified, consumers may not have received a valid offer of comparable residential insurance from an insurance company licensed in Texas (not including surplus lines insurers).The FAIR Plan can decline coverage to an applicant if the person or the property to be insured does not meet the FAIR Plan’s underwriting standards.

It is important to mention that the FAIR Plan offers limited coverage which may not be as comprehensive as coverage in the voluntary insurance market. Many homeowner insurers offer coverages which are not offered by the FAIR Plan.
It would be difficult to compare premiums in the FAIR Plan with premiums in the voluntary market. Most private insurers offer credits or discounts not offered by the FAIR Plan for variables such as insurance risk scores, newer homes and carrying both homeowners and auto insurance with the same company.

Recently the FAIR Plan has experienced explosive growth in various parts of Texas. For example, in Harris County at the conclusion of July 2010, the FAIR Plan had 54,084 policies in force with $8,728,588,157 in exposure as compared to the end of July 2011 when the FAIR Plan had 62,994 policies in force and $10,201,898,578 in exposure. These statistics result in increases in policies in force and exposure of 16.5 percent and 16.9 percent respectively while the growth in premiums during the period was 15.9 percent.

In Fort Bend County at the conclusion of July 2010 the FAIR Plan had 5,256 policies in force and one year later that number grew to 6,093. Exposure in July 2010 was $1,037,168,246 contrasted with July 2011 when it was $1,184,421,942 representing a growth rate of 13.32 percent.

Lastly, it is important to emphasize that the purpose of the Texas FAIR Plan was to be the market of last resort for consumers but in some parts of Texas it is becoming a market of first choice.

2011-09-20T14:32:00.000-05:00

Farmers Agent David Lorms participated in the Oak Forest Elementary School Parents night Thursday September 8, 2011 by handing out free finger printing kits and saftey coloring books for children. The finger printing kits are part of an Identification Packet that serves as the first step in an Amber Alert.

State Farm Seeks 10% Homeowners Rate Hike in Texas September 14, 2011

2011-09-20T12:11:00.001-05:00

State Farm Insurance has filed notice seeking an average 10 percent increase in Texas homeowner rates. But company officials say discounts will be boosted to hold the actual premium hike to 1.4 percent statewide. The Dallas Morning News reports State Farm has also proposed a requiring customers to shift to a deductible of 1 percent of the home’s insured value. Current deductibles are often a flat rate, such as $500 or $1,000. Company officials said that the new deductibles are in line with the increased cost of home repairs. State Farm wants the changes to take effect Oct. 15 for new customers and Dec. 1 for existing policyholders. A new Texas law requires the state insurance commissioner to complete a review of the request within 30 days

Allstate planning 'dramatic' rate hikes within homeowners

2011-09-20T12:07:00.002-05:00

Tuesday, September 13, 2011 1:25 PM ET

By Adam Cancryn

Allstate Corp. will combat mounting catastrophe losses with significant price hikes in its homeowners insurance segment, Chairman, President and CEO Thomas Wilson II said at a conference hosted by Barclays on Sept. 13.

Hurricanes, earthquakes, tornadoes and other natural disasters have cut into the company's profitability over the last three years and left its homeowners division with combined ratios exceeding 100%. Rather than hoping for calmer years going forward, Wilson said Allstate is adapting its business based on expectations that catastrophe losses will remain at these elevated levels. "We're assuming that expenses and losses will stay where they're at," Wilson said. "The first thing you've got to do is raise prices."

Allstate increased its homeowners rates by 8.4% in 2009 and 7.0% in 2010. It raised them another 3.4% during the first half of this year. However, the company plans on a few more years of "pretty dramatic price increases" before it is comfortable with the segment's disaster risk. At the same time, Wilson said the division has steadily reduced its exposure by cutting a significant number of policies in force.

Allstate will also reduce claims costs by redesigning its roof coverage products to age-rate the roofs it covers. The new approach will lower payouts for damage to older roofs. The fixed annuities segment has also dragged on Allstate's performance, Wilson said. The single-digit returns have been "subpar" while the broader economy struggles, but the company has no plans to radically alter the portfolio until interest rates start to improve.

"We're intentionally keeping returns low because we don't want to invest long term," he said. "When rates go up, we'll be able to reposition that business with different investments." Wilson also provided a brief update on Allstate's pending acquisition of Esurance, saying it is rethinking the company's marketing strategy. No major steps can be taken until the deal is closed, but Wilson said the insurer is considering bringing in a new advertising agency to lead the promotional push.

Safety Information given to Parents by David Lorms

2011-09-06T15:23:00.000-05:00

David Lorms, Farmers Insurance Agent, passed out child safety information and identification packets to parents of studends of LU LU Stevens Elementary School on Parents night last Tuesday, September 30th, 2011. Pictured with Lorms is Principal Lucy Anderson.

Life insurance - Now is the time to get it started

2011-08-24T12:02:00.000-05:00

According to a recent study published by the Life Insurance and Market Research Association, in 2010, 30 percent of U.S. households had no life insurance coverage at all.1

Taking steps to help protect your family’s financial future — it’s never too late or too early to start. For many of us, life is hectic and fast-moving and life insurance may not seem like a priority. Consider, however: Your ability to earn income is a significant asset to your family, and life insurance could help replace lost income in the event of your death. And if you do own life insurance, it’s important to review it and re-evaluate your needs periodically. Why? Well, as changes in your life circumstances occur, changes in your life insurance needs may follow. That’s why it’s a good idea to review and evaluate your needs at least every few years and certainly when big changes or life events occur.

Life is full of the unexpected
We can’t prevent or predict the unexpected, but we can prepare for it. Life insurance gives you the opportunity to help protect your family’s lifestyle, dreams and finances should the unexpected occur.

Life insurance can help your family:

Continue to pay the home mortgage
Maintain their current standard of living
Pay off debts, estate taxes and final expenses
Create a fund for college education
Create a fund for a family member with special needs
Help protect their dreams for the future
Take some time to think about life insurance and talk about life insurance. And call me — we can work together to help you be sure you have the coverage you want and the protection your family deserves.

Peak Hurricane Season is Here

2011-08-17T11:01:00.001-05:00

The height of the 2011 Hurricane Season is here, which means a significant risk of flooding in both coastal communities and those far inland as well. In fact, some of the worst damage from recent hurricanes occurred hundreds or even thousands of miles from the coast—as far as New York state due to Hurricane Ivan in 2004 and through much of the Midwest and into Pennsylvania because of Hurricane Ike in 2008. While your customers may not be aware of the risk until your community is threatened with an impending storm, they need to know now that there is typically a 30-day waiting period for a flood insurance policy to take effect.

Encourage your customers to get covered now. Let them know that flood insurance is more affordable than they may think. The average flood insurance policy is around $579 a year and in moderate-to-low-risk areas, Preferred Risk Policies start as low as $129 a year.

Costly Consequences

Eight of the top ten most expensive federally declared disasters were caused by hurricanes. Just a few inches of water can cause tens of thousands of dollars of damage and last year, the average individual flood insurance claim was more than $24,000. Without flood insurance protection, many property owners have to absorb the financial losses on their own, potentially draining their savings.

Tools You Can Use to Market Flood Insurance

Visit FloodSmart.gov to find essential information and tools that will help remind your customers to prepare for the dangers of flooding all year long, and please share these interactive resources with your customers, colleagues and partners as well.

Cost-of-Flooding Tool: Gives consumers an estimate of how much they will have to pay to repair their properties based on various levels of flooding.
One-Step Flood Risk Profile Assessment Tool: Enables consumers to enter their address and learn about their property’s flood risk.
Hurricane Flooding Fact Sheets: Explains hurricane season risks.
Hurricane Season Widget: A simple interactive application that you can post to your website that includes helpful flood risk/flood insurance information and tips for your customers.
Levee Simulator: Demonstrates how levees work and the risks home and business owners face when they fail.

Condo coverage

2011-08-17T10:37:00.003-05:00

As many of us consider downsizing, condominiums or co-ops may become an attractive alternative to the responsibilities that go along with single-family home ownership. But sometimes questions arise with regard to responsibility for and ownership of various parts of the property. Obviously, you — the unit owner — own your personal property, like your sofa and bedroom dresser. But what about the interior walls, plumbing and other parts of the property? Those questions often lead to concerns about insurance. How do you know what insurance you need?

Who owns what?
When a condominium or co-op is being built, the developer creates a declaration that provides the organizational structure. This declaration usually becomes the guiding document for the association and each unit owner because it outlines the common elements — parts of the property owned and shared among all unit owners — that are the association’s responsibility. The association normally obtains an insurance policy to cover association property and liability. As the unit owner, you buy insurance to cover your personal property and liability, as well as building property that’s defined as part of the condominium unit and for which you’re responsible under your association’s documents.

The “association policy” — Sometimes called the “master policy,” this is provided by the condo/co-op board, and generally insures the common areas for both liability and property damage — the roof, basement, elevator, boiler, pool and walkways, for instance.
Your individual condo policy — This covers your personal possessions and provides additional living expenses in the event your unit becomes uninhabitable due to damage caused by fire, tornado or other covered loss. Typically, your policy would include personal liability, unit owner’s building property and loss assessment coverage as well.

Let’s work together
Insurance coverage for condo or co-op owners can get complicated, so call me. I can answer your questions about the condo policy, explain coverage provisions and identify discounts for which you may qualify and deductibles you may choose. And if you’re sticking with your single-family home — or if you rent — I can help you with that as well. Forward this to someone you know — I can help them, too.

Buying a Car

2011-08-03T12:13:00.000-05:00

There's more to buying a car than picking the paint color and upholstery. That's the fun part. Truth is, buying a car is a major purchase, and if you're financing your car with an auto loan, it's a significant financial commitment that will impact your finances for years to come.

Whether you're buying or leasing, there are important insurance considerations to take into account. Depending on your lease, you may be required to purchase more coverage than you might have if you were buying the vehicle. Also, some cars are simply more expensive to insure than others, whether because of safety records, theft statistics, or even how you plan to use the vehicle.

If you're considering several models and can't decide, your Farmers agent can help you make an informed decision. Contact them for coverage price comparisons for the models you're interested in. A higher -- or lower -- insurance coverage premium may make the decision for you!

Does Property Value have anything to do with Reconstruction Value?

2011-07-18T10:40:00.002-05:00

One of the biggest questions I’ve been asked is ”how is the coverage on my home owners policy determined?". Most people equate it to the market value but the problem here is that the property value has NOTHING to do with what it would cost to reconstruct you home.

Most homeowners policies cover the reconstruction of your home if damaged or destroyed by certain perils (risks). The ”dwelling coverage” on your homeowners policy is what covers the reconstruction of your home, plus tearing out old debris and hauling it off. If properly written, your homeowners policy would have exactly enough “dwelling coverage” on the policy to rebuild you home if it was totally destroyed.

The bottom line is that the cost to rebuild your home has nothing to do with what it would sell or appraise for. Depending on the condition of the home and the market in the area, the sale or appraised value may be less than what it would cost to rebuild that same house. On the flip side, if a house is in good condition and the housing market is stable, then the sale price or appraised value should be greater than what it would cost to rebuild the home.

Here are some practical ideas you can do today to make sure you have the proper reconstruction cost limits on your homeowners policy;

*Contact your agent and ask for a meeting to review your policy.They should be using state approved recosntruction calculators.
*Call some local contractors and ask them to give you a approximate cost per square foot if they were to build a home in your area. Then once you get that cost simply multiply it by the square footage of you home and you can get a good idea of the coverage limit needed on you policy.
*Ask some of your neighbors what their coverage limits are – hoping they have the proper coverage.
*Ultimately for most insurance companies, the responsibility for having enough coverage is on the insured NOT the company. So it is so important that you take the time to be sure you have the right coverage – you don’t want to find out when it’s to late!

Your auto insurance premiums change: Do you wonder why?

2011-07-07T13:09:00.000-05:00

Many factors affect your auto insurance cost. You can control some of them, such as your choice of vehicle, your driving habits, and the coverages and deductibles you choose.

Then there are some factors over which you — and in many instances your insurance carrier — have little or no control, such as medical costs to treat injuries, vehicle repair costs, costs to adjust claims, and uninsured drivers.

Controlling insurance costs
What is Farmers doing to control insurance costs? Actually, quite a lot. Take a look at some of our ongoing initiatives:

We make available a network of reliable auto repair facilities.
We vigorously oppose frivolous lawsuits.
We have an active Anti-Fraud Unit.
We offer a youth driving safety education program to all parents of young drivers.
We actively support organizations devoted to auto safety, including anti-drunk driving efforts and those dedicated to improving youth driving safety.
In many states, we offer annual policies to help keep your rates more stable. Call me to see if this option is available to you.
Discounts
Farmers offers many discounts that may help you keep your insurance costs low, including:*

Multiple-Policy Discount: Insuring both your home and automobile with Farmers may entitle you to reduced rates on each.
Alternative Fuel Discount: You can save on all major coverages if you drive a hybrid or other alternative fuel vehicle.
Electronic Stability Control Discount: Vehicles equipped with a stability control feature may qualify for a discount on collision coverage.
Professional Affinity Group Discount: Doctors, Registered Nurses, Engineers, Scientists, Educators, Accountants, Police, Firefighters and other professionals may qualify for discounts.
Anti-Lock Brake Discount: If your car is equipped with a factory-installed anti-lock braking system on all four wheels, you may pay less.
Anti-Theft Discount: You may save on your Comprehensive Coverage if your car is equipped with an anti-theft device.
Accident Free Discount: A good driving record could save you even more.
Good Student Discount: Households with young drivers who are students and maintain a "B" average may be eligible for a discount.
Let's get together, review your coverage and discuss your individual needs so you can be sure you're taking advantage of available cost-savings and that you have the coverage you want.

*Discounts apply to select coverages, perils and policy types, and may vary by state. Eligibility and actual percentage of discounts may vary.

Texas Lawmakers Pass Sweeping Texas Windstorm Insurance Association (TWIA) Legislation

2011-07-06T08:19:00.000-05:00

After weeks of negotiations during a legislative special session, the Texas Legislature finally passed a meaningful Texas Windstorm Insurance Association (TWIA) bill. Gov. Rick Perry placed TWIA on the special session agenda forcing legislators to solve problems that surfaced at TWIA after Hurricane Ike. Texas House members wanted to limit damages to the actual cost of a policy, lawyer fees and interest. However, Texas Senators wanted to keep the ability to sue TWIA for triple damage while adding on hefty interest penalties. House & Senate negotiators met roughly in the middle when forging a compromise on the bill.

The bill eliminates treble damages and an eighteen percent penalty interest. Insureds must file a claim within one year of the date of loss with extensions for good cause. Premium discounts are required for insureds electing binding arbitration. Insured must exhaust administrative remedies, including appraisal where appropriate, before a lawsuit can be filed. The bill will allow double damages under limited circumstances for knowing and intentional violations by TWIA; and impose deadlines for TWIA to complete investigation and notice of claims. A new expert panel is required to recommend how to settle disputed wind v. water claims and where evidence is limited (slab losses).

Other key provisions included in the bill:

Funding. Pre-event bonds can be authorized and the $2.5 billion in aggregate funding for bonds is the maximum in any calendar year. This clarifies provisions of the law passed in 2009. The TWIA board is authorized to purchase reinsurance and if TWIA does not purchase reinsurance, it has to submit an actuarial plan to pay losses in excess of $2.5 Billion.

Operations. TWIA is subject to open meeting and open records act. The insurance commissioner can be present in executive session meetings; TWIA must publish salary information for certain managers and contractors.

TDI Oversight. TDI is allowed to put TWIA into conservatorship. Random claim audits are required after 1,000 claims have been filed following a storm. TDI has authority to issue cease and desist order to inspectors. A study for a single adjuster program is required.

Agent Commissions. TDI must set agent commissions by rule; however, current commissions remain in place until technologies and efficiencies improve the process for the TWIA applications.

Loss Mitigation. Provides for alternative certification requirements for certain noncompliant structures and consumers building to higher code standards can receive premium discounts.

President Declares Major Disaster For The State Of Texas

2011-07-05T10:40:00.000-05:00

WASHINGTON, D.C. -- The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced that federal disaster assistance has been made available to the state of Texas to supplement state and local recovery efforts in the area struck by wildfires during the period of April 6 to May 3, 2011

2011-06-07T10:53:00.000-05:00

We LOVE it when you “Just Keep Talking” about the special treatment and low prices you receive from us! Now, we want to add a little FUN to the process! We’re going to make YOU A WINNER when you tell a friend, relative or colleague to call us at 713-688-8669 or visit us at www.farmersagent.com/dlorms. We could give our advertising dollars to newspapers, ad agencies, etc., but we’d rather give it to you because… YOU are the best advertising we can get!
Thank you for your support!
David Lorms

Hurruicane Season Starts June 1st - November 30

2011-05-31T13:40:00.002-05:00

Educate Yourself
After getting flood insurance, there are several things you can do to minimize losses in your home and ensure your family's safety.

1. Safeguard your possessions.
Create a personal flood file containing information about all your possessions and keep it in a secure place, such as a safe deposit box or waterproof container. This file should have:

A copy of your insurance policies with your agents contact information.
Conduct a household inventory: For insurance purposes, be sure to keep a written and visual (i.e., videotaped or photographed) record of all major household items and valuables, even those stored in basements, attics or garages. Create files that include serial numbers and store receipts for major appliances and electronics. Have jewelry and artwork appraised. These documents are critically important when filing insurance claims. For more information visit www.knowyourstuff.org.
Copies of all other critical documents, including finance records or receipts of major purchases.

2. Prepare your house.

First make sure your sump pump is working and then install a battery-operated backup, in case of a power failure. Installing a water alarm will also let you know if water is accumulating in your basement.
Clear debris from gutters and downspouts.
Anchor any fuel tanks.
Raise your electrical components (switches, sockets, circuit breakers, and wiring) at least 12 inches above your home's projected flood elevation.
Place the furnace, water heater, washer, and dryer on cement blocks at least 12 inches above the projected flood elevation.
Move furniture, valuables, and important documents to a safe place.

3. Develop a family emergency plan.

Create a safety kit with drinking water, canned food, first aid, blankets, a radio, and a flashlight.
Post emergency telephone numbers by the phone and teach your children how to dial 911.
Plan and practice a flood evacuation route with your family. Know safe routes from home, work, and school that are on higher ground.
Ask an out-of-state relative or friend to be your emergency family contact.
Have a plan to protect your pets.

For more information on emergency preparation, talk to your insurance agent or visit Ready.gov.

2011-05-27T11:12:00.000-05:00

Farmers Agent David Lorms donated money to Oak Forest Elementary School for a Perfect Attendance Program. Pictured with Lorms is Principal Scott Pollack.

2011-05-26T17:50:00.000-05:00

David Lorms, Farmers Insurance Agent, donated money to Lu Lu Stephens Elementary School for a Perfect Attendance Award Program. Pictured with Lorms is Principal Lucy Anderson.

Houston’s Top Ten Stolen Vehicles for April 2011

2011-05-12T11:00:00.000-05:00

The following is a rundown of the “Top 10” makes of vehicles reported stolen to the Houston Police Department during the month of April 2011.

1. Chevrolet Trucks 127

2. Ford Trucks 123

3. Honda Cars 85

4. Dodge Trucks 68

5. GMC Trucks 38

6. Toyota Cars 36

7. Chevrolet Cars 34

8. Dodge Cars 28

9. Ford Cars 23

10. Buick Cars 17

State Farm's Dog Bite Claim States

2011-05-10T14:33:00.003-05:00

This makes you think twice about what kind of dog you may want to have!

State Farm reportedly paid more than $90 million as a result of the nearly 3,500 dog bite claims in 2010.

The list of the top 10 states for dog bite claims in 2010 processed by State Farm is as follows:

State - Number of claims – Claims paid (estimated)

1. California 369 $11.3 million

2. Illinois 317 $9.7 million

3. Ohio 215 $5.7 million

4. Texas 202 $3.7 million

5. Michigan 166 $5.2 million

6. Pennsylvania 155 $3.9 million

7. Florida 146 $5.6 million

8. Minnesota 139 $3.4 million

9. New York 119 $4.3 million

10. Indiana 114 $1.8 million

The Insurance Information Institute (III) estimates that in 2009, insurers across the country paid more than $412 million in dog bite claims.

Source: State Farm

How to protect your family if you die...what everyone must know about life insurance

2011-04-21T14:24:00.001-05:00

What you'll discover in this report:
How to make sure your family is really protected!
Cut through the confusing "insurance jargon" and know what a life insurance policy really says!
The different kinds of life insurance policies...what they're good for, when to use which one
Why smart consumers use life insurance...and the mistakes that other people make too often
...and much more!
How to protect your family if you die...
Life insurance is a simple concept -- you buy a policy that pays to your beneficiary or beneficiaries when you die -- but the decisions of what kind life insurance to purchase, how much of a death benefit and how much you pay are extremely complex.

* Note. There are more than 2,000 companies selling life insurance in this country. Some are very good, financially solid companies; others are not so sound. A company's financial strength is vitally important to you because, hopefully, no one is going to collect on your life insurance for a long time.

You want to make sure your life insurer will be around for the long haul. How do you do this? You can consult a seasoned insurance professional, which is probably your best bet, or you can look at how various independent organizations "rate" the life insurers you are considering. Ratings are like school grades, A+, A, A-, B+, etc. In general, it's wise to stick with companies that are rated A or better by most rating organizations.

Many Purposes for Life Insurance
Life insurance is far more than just a decision of how much to buy. Depending on your financial situation, life insurance can be used for a variety of purposes, such as:

estate planning
accumulating cash
transferring wealth
achieving estate tax liquidity.
Life insurance is like auto insurance in that you can buy a lot of it or not very much of it. Life insurance differs from auto insurance in that, depending on the type of policy you buy, you can pay a lot or a little for basically the same death benefit. Keep in mind, though, that the younger and healthier you are, the less you will pay for coverage. Life insurers like to have their policyholders around for a long, long time.

* Tip. So how much life insurance do you need? It depends. One common benchmark says your death benefit should be about six to eight times your annual earnings, but there are a variety of factors to consider:

Other income sources.
The size of your family. Whether your spouse works and his or her earning capacity now and in the future. The number of people who are financially dependent on you and for how long. The death benefits your family will receive from Social Security and any life insurance plan through your employer. And any special needs such as mortgages, college education funds and estate planning.

Make Sure Death Benefit Is Adequate
What kind of life insurance should you buy? That also depends. But keep this very important principle in mind:

* Tip. Whatever type of policy you buy, make sure it provides enough of a death benefit to meet your family's needs if you aren't there. When you consider buying life insurance, calculate what your family must have in terms of a death benefit. Don't lose sight of this number.

What kinds of life insurance policies are there? There are several, but keep in mind that the terms and costs of the policies vary widely among insurers.

There are two basic types:

term life, which is good for only a certain period of time, and,
cash-value, which is "permanent" insurance that also includes a buildup of value in cash in addition to your death benefit. You can borrow against your cash value. You can even take out some of that cash value, but your death benefit will be reduced.
What exactly is "cash value?" It's the part of a permanent life insurance policy not needed for so-called "mortality expenses." The greater your risk of dying, for whatever reason, in the near term, the greater your mortality expense to your insurer.

When young, healthy people buy life insurance, they have a very low mortality cost to their insurer (which is why life insurers are so willing to provide coverage to the young and healthy).

What You Need to Know about Term Life Insurance...
Term life policies provide coverage for specific periods of time, sometimes as little as one year. While you usually can renew term life policies for one or more terms even if your health has changed, there's potentially a big risk here if you get sick during the term.

* Tip. If your health does change, you probably won't be able to buy another term without watching your premium skyrocket. You should ask your insurer or agent what the premium will be if you continue to renew the policy.

* Note. You should also ask whether you will lose the right to renew the policy when you reach a certain age. Because this coverage is fairly cheap, it's often a good option for young people in good health who can't afford to buy "permanent" coverage.

Here are a couple of term life policy options:

Yearly Renewable Term Life -- This is coverage for a longer term, five, 10 or 20 years. The longer term also means that the costs to cover you are spread out so that you will avoid the potential for huge annual premium increases.
Convertible Term Life -- This is yearly renewable with the option to convert to a permanent policy in the future. The coverage, which often has the lowest cost and highest death benefit options of term insurance, can be a good choice for younger people who can't afford permanent coverage but who need a large death benefit and the option to convert to a permanent policy down the road.
What you need to know about Cash Value Life Insurance...
Cash-value life policies have premiums that are higher at the beginning than they would be for the same amount of term insurance.

The part of the premium not used to cover the yearly cost for mortality and other expenses is invested by the company and builds up a cash value that you may use in a variety of ways. Here are some specific examples of cash-value life insurance:

Whole (or Ordinary) Life -- Like other cash-value policies, this is permanent coverage. The cost is literally stretched out over your entire life, or what the insurance company expects your entire life period to be. Life insurers have tables that tell them how long, on average, someone of your age and physical health will live.

Say you want $500,000 in coverage. The insurance company's rates are based on how much they need to charge you in order to allow the company to recoup the eventual death benefit while you are alive. The premium and the death benefit don't change much in whole life policies. You pay so much a month for a given death benefit. However, dividends to policyholders can increase the coverage or decrease the premium.

Universal Life -- This is the flexible life insurance. You can change your premium and your death benefit at any time, although a substantial increase in the coverage usually requires you to prove you are still in good health.
Variable Life -- This is a hybrid whole/universal coverage in which the death benefit is dependent on the investment performance of the insurance company's assets. And you get to choose the investment vehicle -- money market fund, bond fund or stock fund -- for your premium.
* Note. If your investments do well, your policy's cash value and death benefit will increase. If not, they'll go down, but most variable life policies won't let your death benefit drop below a certain level. However, it's possible a company will charge you for a guaranteed death benefit.

Which type of policy is best for you? In general, if you have significant assets, it's better (and less risky) to have some sort of cash-value policy. But which one? It's more important to buy the coverage from an insurer that has the best chance of performing well in the future; an insurer that has low actual expenses and mortality costs. Such an insurer will be able to offer better terms, including higher death benefits, higher cash value and lower premiums.

* Tip. But, again, there are more than 2,000 companies selling life insurance in the United States. As a result, you have thousands and thousands of options. This makes it even more imperative that you have a trained insurance professional analyze your financial situation and determine what kind of policy, from which insurer, is best for you.

Are you protected from bad weather?

2011-04-21T13:06:00.001-05:00

A severe line of thunderstorms extending 100 miles pounded portions of north central Texas this week producing hail as large as tennis balls. The line extended from Denton to Hillsboro.

The communities of Itasca and Covington located north of Hillsboro were hit with tennis ball size hail. Residents reported damage to homes and automobiles. Golf ball size hail was reported in cities along Interstate 35 W from Denton County to Hill County. (see above map)

The heaviest thunderstorms this year occurred on April 10, when four tornadoes and hailstorms struck north, south and east of the DFW area. The April 10 storm caused $100 million in insured losses. A second round of storms occurred April 14, with multiple reports of golf ball size hail falling in suburbs north of Dallas and Fort Worth.

All three storm systems have been responsible for nearly 300 tornadoes that have resulted in dozens of fatalities and property damage in 14 states.

“We don’t want the violent weather, but the entire state is in dire need of a good rain to not only end our drought-like conditions, but to bring a halt to the wildfires that continue to ravage our state,” said Mark Hanna, a spokesman for the Insurance Council of Texas.

Source: The Insurance Council of Texas

House Flood Insurance Reform Bill Wins Bipartisan Support

2011-04-07T12:42:00.000-05:00

April 7, 2011

Article Comments A House subcommittee yesterday approved a bipartisan bill to reauthorize and reform the nation’s flood insurance program.

The 10 Republicans and eight Democrats on the Insurance, Housing and Community Opportunity Subcommittee approved the bill on a voice vote.

The legislation (HR 1309) provides for a five-year extension of the National Flood Insurance Program (NFIP) and phases out the program’s rate subsidies, gradually raises all premiums to reflect actual costs, improves the accuracy of flood maps and allows more public input into the mapping process, and encourages private insurer and reinsurer participation in the market.

The bill also adds two new coverage options, ties policy limits to inflation, and sets higher deductibles for rate-subsidized properties.

The NFIP, which is more than $17 billion in debt, is currently slated to expire on Sept. 30. It has been operating on short-term authorizations and has been criticized by fiscal watchdogs for under-pricing risk and by environmental groups for promoting development in environmentally-sensitive areas.

“I’m very pleased we were able to move this bill forward with bipartisan support. The current program is in deep financial trouble and our bill places it back on sound footing by phasing in actuarially sound rates, and it addresses a broad range of concerns about new maps, as well as dams and levees,” said Rep. Judy Biggert, R-Ill., subcommittee chair and chief sponsor of the bill.

“Together, these reforms will help ensure reliable protection for homeowners and businesses while shifting the burden of risk off American taxpayers.”

The bill is co-sponsored by subcommittee members Maxine Waters, D-Calif., Scott Garrett, R-N.J., Robert Dold, R-Ill., Shelley Moore Capito, R-W.Va, and Steve Stivers, R-Oh.

Financial Services Committee Chairman Spencer Bachus, R-Ala., commended Biggert’s committee for its bipartisan action. “Thousands of communities and millions of property owners depend on flood insurance to provide some measure of security. To protect them while minimizing the risk to taxpayers, the NFIP must be made more self-sufficient,” Bachus said.

The plan pushes the program to reduce subsidies in flood insurance rates in several ways.

It requires that rates for most properties be raised by 20 percent a year until they reach actuarially sound levels. These include commercial properties, vacation homes, repetitive loss properties, homes that have had damage exceeding 50 percent of their value, homes that have had improvements exceeding 30 percent of their value, and homes sold to new owners.As part of its effort to move to cost-based rates, the bill raises the cap on increases for certain properties in the program, including commercial buildings, second homes, vacation homes, homes sold to new owners, homes that have had substantial flood damage and improvements, and homes that have had multiple flood claims.

For all other existing policyholders, rates would be allowed to go up within a flex-band of between 10 percent and 20 percent a year. Current law does not allow increases above 10 percent a year.

Also, rates for property owners in communities newly designated as in flood hazard zones would be move to cost-based pricing over a five-year span. Their rates would be start at 50 percent of the actuarial indications the first year, with 20 percent hikes each year thereafter until they are brought in line with what actuaries say they should be.

The bill sets minimum deductibles of $1,000 for properties being charged cost-based rates, and $2,000 for those with subsidized rates.

Maximum coverage limits — currently $250,000 for residential structures, $100,000 for residential contents and $500,000 for commercial properties — would be indexed to inflation starting in 2012.

The bill does not add wind coverage to the NFIP offerings as some lawmakers from coastal states have urged in the past, but it does add two new coverage options: additional living expenses (ALE) up to $5,000 aggregate and business interruption (BI) coverage up to $20,000 per property. This expansion has been backed by business and insurance groups but questioned by some taxpayer and conservation groups.

The bill would establish an advisory council to give local communities more say in the flood mapping process and it directs the Federal Emergency Management Agency (FEMA) that manages the prorgam to take steps to improve the accuracy of maps.

It also lends support to efforts to privatize the program. FEMA must report within 18 months on a “broad range of options, methods and strategies” for privatizing the program. Also, within six months, FEMA must conduct a study to assess the capacity of the private reinsurance, capital, and financial markets to assume a portion of the program’s risk. It authorizes FEMA to secure private reinsurance to help maintain the program’s ability to pay claims and minimize its need to borrow from the Treasury.

The bill also calls for incentives for communities and individuals to take mitigation steps and enforce local building codes.

The legislation has the backing of insurance groups.

Ben McKay, senior vice president of federal government relations for the Property Casualty Insurers Association of America, called the legislation “a step in the right direction for strengthening the program with a critical long-term reauthorization to protect the over 5.6 million Americans who rely on flood insurance.”

“Today’s vote was an important first step for reforming the National Flood Insurance Program,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies. “But there’s still a long way to go. We urge the full Financial Services Committee to take up HR 1309 swiftly.”

SmarterSafer.org, a coalition of conservation and business groups, also praised the action.

“This is a concrete first step towards real reform of the NFIP program. For over 40 years, the federal government, through NFIP has provided significant subsidies for flood coverage. It has provided the wrong incentives, helping to subsidize development in harm’s way,” the group said in a press release. “The American taxpayer has been put at significant risk through this program. The Biggert bill takes significant strides towards protecting taxpayers and we now look forward to its consideration by the House Financial Services Committee.”

Donation to Lu Lu Stevens Elementary School

2011-03-31T10:08:00.002-05:00

Farmers Agent David Lorms, donated money to fund a perfect attendance award program to Lu Lu Stevens Elementary School for the Spring 2011 semester. This program gives students the incentive to attend class with perfect attendance for the opportunity to win prizes. Pictured with Lorms is Lucy Anderson, Principal.

Seeking Agency Producer - Insurance Sales (TC Jester and Loop 610)

2011-03-29T21:29:00.002-05:00

Agency producers work in Farmers agencies as field sales professionals. Agency producers are able to sell insurance and financial products much as an agent does and financial service products if the agent has the required licenses. But an agency producer does not have the responsibility of managing a business operation. Agency producers are compensated by the agent for who they provide services. If you are bilingual, you may also qualify for other financial incentives.

Minimum qualifications, usually preferred include:

• Excellent written and oral communication skills (Bilingual a plus-Spanish)
• Customer service oriented
• Good computer skills and proficient with Word, Excel and PowerPoint
• Excellent organizational skills
• Highly motivated entrepreneur
• High School Diploma
• Good credit history ; Insurance license a plus

So why wait? Explore an exciting new opportunity as a Producer in a Farmers agency.
Location: TC Jester and Loop 610
Compensation: Salary plus bonus/commission

Compensation: Salary (hourly) plus bonus/commission

Unrestrained risks

2011-03-28T13:11:00.000-05:00

While strolling down a country road during the summer of 1999, author Stephen King was hit by a weaving van that almost took his life. As King describes in his memoir “On Writing,” a distracted driver had reached into the backseat of his van trying to push his Rottweiler away from a cooler containing meat. The out-of-control van struck the famous writer head-on.

This scenario is not that uncommon. Dog owners often take their beloveds with them when tooling around town, running errands and even on long road trips. And most often the dogs are free to move about in the vehicle. According to Paws to Click, a movement that promotes safe pet travel, unrestrained pets result in more than 30,000 auto accidents per year in the United States.

Think about this: In an accident of only 30 mph, a 60-pound dog can cause an impact of 2,700 pounds, slamming into a car seat, a windshield or another passenger.1

Shocked and scared
After a crash, when every moment is precious, unrestrained pets can attack or otherwise impede emergency medical personnel from reaching critically injured persons. Dogs thrown out of vehicles during or after a collision may be shocked and disoriented and prone to attack passersby. They may survive the initial crash and then bewildered, wander into moving traffic or onto a highway causing another accident or their own demise.

Protect yourself; protect your dog
Endorsed by Bark Buckle UP, a leader and expert in pet travel safety, pet seat belts are the preferred pet safety product. They constrain dogs from distracting the driver and protect pets from being thrown after a collision. Other popular restraints include:

Hard-sided pet travel crate
Pet vehicle seat
Soft-sided pet travel crate
Vehicle pet barrier
Remember, if your dog is near you while you’re driving, he or she can interfere with both your physical and mental ability to operate your vehicle. Learn more about smart driving with your dog at Bark Buckle Up. Traveling together is fun; keep it safe.

1Source: http://www.barkbuckleup.com/WhyBuckleUp.asp

Industry news: Proposed Flood Insurance bill gets positive initial reaction

2011-03-08T18:25:00.000-06:00

With the National Flood Insurance Program (NFIP) currently scheduled to expire September 30, a proposed bill that would extend it five years is being hailed as a good starting point for long-term reform. It would phase out most rate subsidies, tie coverage limits to the rate of inflation, vary the deductible by how subsidized the premium is, and allow the program to sell optional additional living expense and business interruption coverages. Read an Insurance Journal article summarizing the proposed bill.

What is a good car for a16 year old?

2011-03-07T13:10:00.002-06:00

Question: I'm a 16 y/o boy and i'm going to have enough money to purchase my own car for my junior year of high school. I'm curious as to what car I should be looking in to/brand. My budget will range between 10-15,000. Definitely looking for a stylish/sporty car. I was thinking either a mustang, or a pontiac g6. I am looking for a used, and i am aware that i have to be conscious of insurance. and with the mustang it's been my dream car since I was a little kid. i love the 90's model's especially.

Answer: The best option is to get an older, 4 door vehicle, where you can buy liability only. Sport cars for anyone under 25 could be up to $1,000 per month for insurance. Be sure to take Drivers Training for a discount. If you have a GPA of 3.0 (B+) or better, you can also get a "good student" discount. You also will want to consider bundling your auto policy to your parent's policy, where you would benenfit from "multiple car", "auto home" and "good credit" discounts. If you had an accident or ticket, it would not affect your parents policy.

Black History Month February 2011

2011-03-03T10:04:00.003-06:00

Farmers Agent David Lorms, donated Farmers Freedom Song lesson plans including a film to Lu Lu Stevens Elementary School. Celebrating a century of African-American history, the documentary film Freedom's Song: 100 years of African-American Struggle and Triumph highlights significant milestones of the African-American experience. Pictured with Lorms is Principal Lucy Anderson.

Top 5 Reasons Professionals need Errors and Omissions Coverage

2011-02-23T09:05:00.002-06:00

1. Higher standards of care are created by you, the professional and the expert

2. Increasing Litigation in our society is generating more frivolous lawsuits

3. Average defense cost for an E&O claim is $150,000

4. Allegations of General Negligence in performance of professional services for compensation

5. Employees can make honest errors that can cause economic loss to your company
Paperwork/Administrative errors

- Funds-handling errors

- Failure to document

- Allegations of Libel, Slander, or Defamation

- Errors regarding the content of media communication

Black History Month

2011-02-22T08:51:00.003-06:00

Farmers Agent, David Lorms, donated lesson plans for Black History month to Black Middle School. Pictured with Lorms is Assistance Vice Principal Tom Day.

THE CIRCLE OF SAFETY: HOW TO PROTECT YOURSELF AND YOUR FAMILY WITH RENTERS’ INSURANCE

2011-02-14T15:33:00.002-06:00

By Farmers Insurance by David Lorms

What you’ll discover in this report:
 Surprising secrets about what’s covered in a standard Renter’s Policy!
 The most dangerous myth about renters insurance
 What to do before you ever have a claim
 Protecting your jewelry, art, computer equipment and other valuables that
may not be covered!
 Insurance jargon demystified! What are you really getting? Find out here...

BUSTING THE MYTHS ABOUT RENTERS INSURANCEIt is one of the most commonly repeated myths about insurance. Renters don’t need insurance because their landlord’s policy provides coverage for the renters’ property.

No, it doesn’t. Further, if someone slips and falls in your apartment or rented home, your landlord’s insurance usually won’t provide any coverage for you if you are sued.

Renters insurance is basically like homeowners coverage without coverage for the structure.

 Note. Renters insurance provides coverage for your possessions and for liability if someone injured while on your premises sues you. Renters insurance also covers any of your possessions when they are away from your residence, including in your car.

In addition, renters policies provide what are called additional living expenses. If some catastrophe covered by the policy -- fire, bursting pipes -- makes the place you are renting uninhabitable, the policy will pay some of the costs you incur to live somewhere else while the residence is being repaired.

The coverage is usually limited to either a specific period of time, say 12 months, or what the insurance company considers a “reasonable length of time.” Also, there is a cap on the amount of additional living expenses the insurer will pay, usually a percentage of the total liability limits.

Like homeowners insurance, renters policies do not cover damage or losses resulting from flooding, landslide or earthquake -- although it is possible to buy coverage for these risks separately.

Actual Cash Value vs. Replacement Cost for rentersLike homeowners insurance, there are two options for covering your possessions:

Actual cash value, which is the replacement cost of an item minus depreciation.

Replacement, which allows you to buy a new item to replace the one lost, stolen or damaged, no matter how old that item is.

 Note. Because replacement cost is better coverage, it costs more. Usually about 10% to 15% more.

Speaking of cost, renters insurance is fairly cheap when compared with other personal insurance policies. Usually, you can get a decent policy for about $200 a year, depending on where you live. If you choose higher limits for your personal property and liability coverage, you could pay as much as $400 a year.

The policy has dollar limits on certain types of items. For example, there is usually a $1,000 limit for jewelry and anywhere from a $3,000 to $10,000 limit for computer equipment. If you want higher limits, you can purchase an endorsement, or “floater,” to the basic policy.

Like homeowners insurance, renters coverage has a deductible -- the amount you will pay before insurance kicks in. The higher the deductible, the less your policy will cost.

You probably should have the same liability limits on your renters policy as you do on your auto insurance policy. Like your auto policy, you want to make sure your renters insurance will cover all your assets if you are sued.

If you are renting with a roommate or roommates, it’s probably best to include all your roommates on the policy. In addition, if you are living and renting with a significant other, many insurance companies will allow you to obtain joint coverage, just as if you were married.

If You Rent: How to Keep Track of What You Own...

 Tip. Like homeowners, you as a renter should have a written and visual inventory of all of your possessions. For items of significant value, you should write down the model numbers, serial numbers, date of purchase and price. Make a written copy of your inventory and keep it at another location, along with your photographs and/or video of the items. A safe deposit box is a good place to keep such records.

 Note. If one of your “possessions” is a dog, you may find it more difficult to get coverage, particularly if that dog is a Rottweiler, Pit Bull or Doberman.

 Tip. Finally, remember that many insurance companies give discounts to those who have multiple policies with a given insurer. Shop around, or have your agent shop around, for insurance companies that have the best rates, discounts, etc., for renters and auto insurance if both are placed with the same company.

Be a smart consumer...but don’t try to be your “own agent.” Protection for you and your family requires constantly vigilance....and a partnership between you and your professional agent. For the latest information on how to save money AND get the best protection for yourself and the people you care most about call Farmers Insurance by David Lorms at 713-688-8669.

Black History Month 2011: Facts on the Annual Celebration

2011-02-14T14:19:00.002-06:00

Farmers has partnered with The Association for the Study of African American Life and History to create Freedom's Song. Complete with a DVD and additional lesson plans and learning materials, Freedom's Song, shares the African American experience in the film industry. The DVD documentary addresses the triumphs and struggles that African Americans have experienced during the past century.

The Supplemental Web downloads don't just tell students about the African American experience, they submerse students in a history that shapes the present and will continue to shape the future. Contact me today to get educational DVD's and supplemental learning materials.

February 1st marks the start of Black History Month, when African-American history is celebrated in the classroom, on television and in daily life.

According to the Library of Congress, Black History Month has its roots in something called Negro History Week. In 1925, Dr. Carter G. Woodson, an African-American historian who founded the Association for the Study of Negro Life and History, proposed Negro History Week as a way to encourage people to learn more about black history. He selected a week in February that included the birthdays of both Abraham Lincoln and black abolitionist Frederick Douglass.

The first Negro History Week was celebrated in February 1926. "The response was overwhelming," says the Library of Congress. "Black history clubs sprang up; teachers demanded materials to instruct their pupils; and progressive whites, not simply white scholars and philanthropists, stepped forward to endorse the effort."

In the early 1970s, Negro History Week was rechristened Black History Week to reflect the changing language used to describe African-Americans. Then, in 1976, as America observed its bicentennial, Black History Week was expanded to the full month we celebrate today.

Every February since 1976, the U.S. president issues a proclamation declaring the second month of the year Black History Month or National African American History Month.

Study Traces Full Impact of Teen Driver Crashes

2011-02-08T10:03:00.000-06:00

The impact of teen driver crashes extends far beyond teen drivers' families and friends, according to a new report.

In 2008, more than half a million (681,000) people were involved in crashes where a teen driver was behind the wheel. More than 40,000 were injured, and nearly 30 percent of those who died in these crashes were not in cars driven by teens. The teen driving report is from The Children's Hospital of Philadelphia (CHOP) and State Farm Insurance Companies.

"When most people think about those affected by teen driver crashes, they think of the teens behind the wheel. We must also consider the significant impact of these crashes on other members of our communities: occupants of other vehicles, pedestrians, cyclists, and other road-users," says Dennis Durbin, M.D., co-scientific director of the Center for Injury Research and Prevention at CHOP, and a co-author of the report.

"Whether we have a teen driver in our family or not, we should all care about this issue. This report provides a concrete way to measure the effectiveness of laws, education, and other programs in reducing teen crashes and their impact on communities."

The report sets forth 11 indicators to help policymakers and safety practitioners determine progress in key areas affecting teen driving safety. Researchers focused on four key behaviors among teen drivers that contribute to crashes or crash fatalities, that can also be tracked using federal data sources: failure to use seat belts, speeding, alcohol use, and distracted driving.

"Reducing speeding and alcohol use, increasing seat belt use, and eliminating distractions for teen drivers are the four calls-to-action we see in this report that would have great impact on reducing injuries and fatalities for all road users," says Dr. Durbin, who is also an emergency physician. "More than half of teens who were fatally injured in crashes were speeding, 40 percent had a positive blood alcohol level, more than half were not wearing seat belts, and 16 percent of teen drivers involved in fatal crashes were reported to have been distracted while driving."

The report also shows that more teens die from car crashes than from cancer, homicide, and suicide combined. Teen driver and peer passenger deaths account for one-quarter (24 percent) of total teen deaths from any cause. However, the authors stress that teen fatalities are just "the tip of the iceberg." Thousands more - including friends, family members, and others on the road - suffer physical injuries, psychological trauma, and disruption to their everyday lives.

Most of these tragedies are due to inexperience, and are therefore preventable, the researchers say. They strong Graduated Driver Licensing (GDL) laws, which allow teens to gain experience under lower-risk conditions, are one effective preventive measure. They also recommend that public health programs and GDL and other traffic safety laws should focus on the key teen behaviors known to raise crash risk: speeding, alcohol use, distractions from peer passengers and cell phones, as well as failure to wear a seat belt.

The federal government recently expanded its Healthy People 2020 initiative to include target goals related to teen driving, including a 10 percent reduction in fatality rate and a 10 percent increase in seat belt use.

The full report and more information can be found at www.TeenDriverSource.org.

Prepare Home for Snow and Cold Weather

2011-02-03T14:27:00.003-06:00

Add the following supplies to your disaster supplies kit:
1. Rock salt to melt ice on walkways
2. Sand to improve traction
3. Snow shovels and other snow removal equipment.

Prepare your home and family
1. Prepare for possible isolation in your home by having sufficient heating fuel; regular fuel sources may be cut off. For example, store a good supply of dry, seasoned wood for your fireplace or wood-burning stove.

2. Winterize your home to extend the life of your fuel supply by insulating walls and attics, caulking and weather-stripping doors and windows, and installing storm windows or covering windows with plastic.

3. Winterize your house, barn, shed or any other structure that may provide shelter for your family, neighbors, livestock or equipment. Clear rain gutters; repair roof leaks and cut away tree branches that could fall on a house or other structure during a storm.

3. Insulate pipes with insulation or newspapers and plastic and allow faucets to drip a little during cold weather to avoid freezing.

4. Keep fire extinguishers on hand, and make sure everyone in your house knows how to use them. House fires pose an additional risk, as more people turn to alternate heating sources without taking the necessary safety precautions.

5. Learn how to shut off water valves (in case a pipe bursts).
Know ahead of time what you should do to help elderly or disabled friends, neighbors or employees.

6. Hire a contractor to check the structural ability of the roof to sustain unusually heavy weight from the accumulation of snow - or water, if drains on flat roofs do not work.

How to Prepare Your Vehicle for The Snow/cold Weather

2011-02-03T13:37:00.002-06:00

Here are a few tips and ideas on preparing your vehicle for the snow/cold weather.

1.First thing first make sure your vehicle is well maintained. Check the oil, anti-freeze, brakes, tire pressure, heater, battery, etc.. These are the simplest things you can do to avoid either breaking down or getting stuck in the snow or cold weather.

2.KNOW YOUR LIMITATIONS. If it is expected to be below freezing or it is supposed to snow and your vehicle is either not in the best shape or suitable for the snow don't go to far or just don't go out at all. If it is freezing outside and your car is on its last leg to go far from home that way if it breaks down you wont have to far to go. If there is snow,either a lot or a little,keep in mind the type of vehicle you drive. Trucks dont do well in snow, especially if there is a lot. Even the big trucks have problems. make sure you put sands bags in your truck bed or, if there is a lot, fill it with snow to weigh down your back end. If the snow starts to pile up be very cautious driving through big drifts. If it is any deeper then a couple of inches find a different route. Once the snow gets that bad that is when it might just be best to stay home.

3. Here are a few basic things you should keep in your vehicle in case you find yourself broken down on the side of the road on a cold day: extra pair of gloves, beanie/snow cap, hoodie/jacket, boots, blanket, flashlight, lighter, small first aid kit, ice scraper. This way if you leave for work and forget your gloves and you end up breaking down you have a pair of gloves already in your car. Just make sure whatever you use gets put back in the car.

4. For those of you that want to be prepared for any occasion here are a few other things that would be handy to keep in your vehicle if you have the space: a gallon of water, something to snack on; beef jerky works well, a basic tool kit, power inverter, extra phone charger/car charger, rechargeable batteries and charger, rechargeable lantern, folding camp shovel, automobile fire extinguisher, emergency road kit, road flares, a can of tire patch repair. Most of this stuff would fit inside a normal backpack that you could keep in the back seat or trunk.

5. Hopefully this information was useful in helping you preparing your vehicle for cold weather. These are good things to keep in your vehicle at all times of the year even when it isn't cold out.

Read more: How to Prepare Your Vehicle for The Snow/cold Weather | eHow.com http://www.ehow.com/how_5841630_prepare-vehicle-snow_cold-weather.html#ixzz1CvUiUbsg

10-4 good buddy

2011-01-20T20:43:00.000-06:00

Semis. 18-wheelers. Extra-long buses. RVs and towed trailers. From country roads to city streets, big rigs of all kinds are everywhere. If you’re not aware of their limitations, sharing the road with these large vehicles can be dangerous. For example, trucks don’t have the same stop-and-go capacity as passenger cars. And, considering their height and weight, they can inflict serious damage to smaller vehicles and their passengers — not to mention pedestrians. Here are some driving tips that may help keep you and your passengers safe when you’re sharing the road with a big rig:

•Be aware of “no zones” — Large trucks have blind spots around the front, back and sides of the vehicle. Try and stay out of these areas because the driver can’t see you. Take away: If you can’t see the driver in the truck’s mirror, the driver can’t see you.

•Passing rules — Before making a move, make sure you can see the front of the truck in your rear-view mirror. Don’t flash your lights; it’s not a universal signal and may only serve to confuse. Take away: Always signal your intent, pass on the left and pass quickly.

•Changing lanes — Large trucks take longer to stop than a car traveling at the same speed so they need greater braking distance. Take away: Don’t pull in front of a large truck and suddenly slow down or stop. The trucker may not be able to stop quickly enough to avoid crashing into you.

•Avoid a “squeeze play” — In order to negotiate a right turn, particularly in urban areas, truck drivers sometimes swing wide to the left. They can’t see directly behind or beside their vehicle so don’t create a “squeeze” by cutting between the truck and the curb. Take away: Pay attention to truck signals and give them plenty of room to maneuver.

Be extra cautious.

As you share the roads and highways with trucks, buses and large hauling vehicles, be attentive and stay focused. It may help you share the road safely.

Source: http://consumerguideauto.howstuffworks.com/industry-insider-sharing-the-road-with-americas-big-rigs-cga.htm

Win 2 tickets to the Super Bowl!

2011-01-10T11:30:00.002-06:00

We just launched a contest to win 2 tickets to the Super Bowl!

The winner also gets travel and two nights stay at a luxury hotel near the spectacular new Cowboys Stadium!
Entering to win is easy: Visit www.farmers.com

Good luck!!
~ David Lorms

How do I get insurance without having a car?

2011-01-02T11:16:00.000-06:00

Question: I got a DUI a few years ago and have never needed to get my license back.now I'm about to have my first child and really need to get it back if I need to drive somewhere but I do not have a car. But I need insurance to get it back. Any help will be great. Thank you.
Asked by Ryan

Answer: You can purchase a "non owners" auto policy, that will cover you when drving other vehciles. David Lorms
www.davidlormsfarmersinsurance.com

Accident on private property who is at fault?

2010-12-02T09:04:00.001-06:00

Accident on private property who is at fault?

Question: My father had a accident in Houston, Tx when he was just pulling out of burger king drive thru some man was not paying attention and side swiped my father on the drivers side of the car, there is damage to our vehicle and none to his. We have a claim number and everything but now after the information was exchanged he is calling us back saying that he will not pay the damages because it was on private property.... Who is at fault and is there any way that we can take them to court since they drove off and we were unable to file a police report?

Asked by nikyo_kurasaki 6 hours ago

Answer: The fact that the accident happened on private property doesn't denote fault or have anything to do with a liability decision. Most times, police will not come out to a scene of an accident if it happens on private property so "blue forms" should always be filled out after the fact. This form is a filing of the accident with the police, after the fact. You can still do this filing. The problem with not having police come to the scene and document the accident, is that people can change their stories and it ends up being one person's word against another. If this happenes, it could be hard to collect from the other person and Insurance companies will probably side with their own insured. Go ahead and place a claim with the insurance comany of the other party for a decision.
To prevent this situation, always call the police. They will usually ask if someone is hurt and if there is no injury, they will not come to the scene. Be sure to file a blue form report anyway, take lots of pictures of the scene, damages to each vehicle, get the names and contact information from witnesses, and exchange insurance information. If you still can't collect from the other party or their insurance company, you can take them to small claims court. If all else fails, file for repair coverage with your own company and they will try to recover their money plus your deductible, if there is enough evidence to support your case.

Texas Financial Responsibility Law: Minimum Auto Liability Insurance Limits have Increased

2010-11-24T10:47:00.002-06:00

(October 2010)

Texas law requires people who drive in Texas to be able to pay for the auto accidents they cause. Most drivers do this by buying automobile liability insurance.

Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses. It does not pay to repair or replace your car or for your injuries.

The minimum coverage amount required by the state’s financial responsibility law is $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage.

The limits will increase on January 1, 2011, to $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident.

Financial Responsibility
Financial responsibility is the ability to pay for any accidents you cause. The state’s Transportation Code lists various ways for drivers to establish financial responsibility. Most drivers do this by buying automobile liability insurance.

Violating the Law
There are severe penalties for violating the state’s financial responsibility law. A first conviction will result in a fine between $175 and $350. Subsequent convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your automobile.

When you obtain an auto insurance policy, your insurance company will send you a proof-of-insurance card. You will need this card to show proof of insurance when you
are asked for it by a law enforcement officer have an accident register your car or renew its registration obtain or renew your driver’s license get your car inspected.

TexasSure
TexasSure is a vehicle insurance verification system that allows law enforcement, county tax officials, and vehicle inspectors to confirm whether a vehicle in Texas has personal auto liability insurance coverage. This means, for example, that a law enforcement officer can electronically confirm during a traffic stop whether a registered vehicle has insurance in effect.

TexasSure will help reduce the number of uninsured vehicles in Texas. An estimated $4 million vehicles – one in five – on Texas roads are uninsured. The program should also prevent motorists from avoiding the law by using counterfeit proof of insurance cards or canceling cards after they’re used for a registration or inspection.

For more information, visit the TexasSure website

www.TexasSure.com

Obtaining Auto Insurance
Contact an insurance company or agent in your area to buy auto insurance. In addition to liability insurance required by law, you can also purchase additional coverages to cover yourself and your property.

Rates vary widely among companies, so it pays to shop around. Make sure you get quotes from several companies and agents before you buy.

The Texas Department of Insurance (TDI) provides several helpful publications and web resources to help you shop:

Texas has a Consumer Bill of Rights for auto insurance. Your insurance company must send you a copy with your policy. Read it to understand your rights and responsibilities under Texas law.

Having Trouble Finding Insurance
If a company turns you down, keep shopping. Companies have different criteria for accepting drivers for coverage.

If you’ve been rejected by two insurance companies, you might be able to buy basic liability insurance through the Texas Automobile Insurance Plan Association (TAIPA). TAIPA doesn’t provide collision or comprehensive coverage or higher liability limits than the law requires. You can add personal injury protection and uninsured/underinsured motorist coverage.

For TAIPA coverage, contact an agent who will submit your application to TAIPA. TAIPA will then assign you a company to collect your premium and pay your claim.

A licensed insurance agent must submit your application to TAIPA. TAIPA will assign you a company that will collect your premium and pay your claims. The company will provide coverage for up to three years. Call TAIPA for more information,

1-800-580-8247
444-4441 in Austin

Help with an Insurance Complaint
If you have an insurance-related complaint, first try to resolve the problem with the company. Complaints often result from misunderstandings and can be worked out by discussing your issues with the company. Most companies in Texas have toll-free numbers for customer assistance. Read your policy to find out how to contact the company.

Texas has a Consumer Bill of Rights for auto insurance. Your insurance company must send you a copy with your policy. Read it to understand your rights under Texas law.

If you're unable to resolve your issue by talking with the company, file a complaint with TDI.

Read about TDI’s consumer complaints process in the Helping You With Your Insurance Complaint publication. You may also e-mail, mail, or fax your complaint along with copies of your supporting documents to

Texas Department of Insurance
Consumer Protection Program (MC 111-1A)
P.O. Box 149091
Austin, TX 78714-9091
Fax: 512-475-1771
E-mail: ConsumerProtection@tdi.state.tx.us

For More Information or Assistance
For answers to general insurance questions or for information on filing an insurance-related complaint, call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday, or visit our website

1-800-252-3439
463-6515 in Austin
www.tdi.state.tx.us

For printed copies of consumer publications, call the 24-hour Publications Order Line

1-800-599-SHOP (7467)
305-7211 in Austin

Help us prevent insurance fraud. To report suspected fraud, call our toll-free Fraud Hot Line

1-888-327-8818

To report suspected arson or suspicious activity involving fires, call the State Fire Marshal’s 24-hour Arson Hot Line

1-877-4FIRE45 (434-7345)

The information in this publication is current as of the revision date. Changes in laws and agency administrative rules made after the revision date may affect the content. View current information on our website. TDI distributes this publication for educational purposes only. This publication is not an endorsement by TDI of any service, product, or company.

Oak Forest Elementary School Fall Festival

2010-11-16T14:41:00.003-06:00

Farmers Agent, David Lorms, and Customer Service Representatives Rebeccas Molnar and Weldon Anderson participated at the Oak Forest Elementary School Fall Festival on November 13th. Information on Home, Driving and Bicycle safety was distributed as well as Child Identification Kits.

Durnham Elementary School Fall Festival 2010

2010-11-11T15:20:00.002-06:00

On Saturday October 30, 2010, Farmers Agent David Lorms participated at the Durnham Elementary School Fall Festival, handing out driving, bicycle and home safey information, along with fire and educational coloring books. In addition, Child Protection Kits were distributed to help parents keep vital information on their children in one place should the child go missing. Local police were on hand to make fingerprints in the kits as well.

Renters Insurance Coverage

2010-11-06T16:21:00.003-05:00

Standard Coverage Optional Coverages
At Farmers we realize that your belongings are just as important as a homeowner's belongings. Our renters policy provides coverage for your household contents and personal belongings.

Furthermore, in the event someone is injured at your place, you could be held legally liable for the injury. Our renters policy provides personal liability coverage should this ever occur.

As a Farmers customer you have access to HelpPoint, a unique claims service that has been recognized by JD Power three years in a row for providing an "outstanding customer service experience." You can call HelpPoint® for immediate assistance, 24/7, free of charge.

Best of all, you get a Farmers agent who can answer your questions about the policy and its coverages, discounts you may qualify for and deductibles you may choose. Most importantly, your Farmers agent can help you choose the coverage you want with flexible payment terms you can live with.

Standard Coverage:
Your Possessions
You choose the amount of coverage based on the property you own.
Personal property is covered anywhere in the world.
Coverage is on a named-peril basis, which means that only losses resulting from causes listed in the policy are covered (subject to exclusions).
Liability

Pays when you're legally liable for someone else's bodily injury or property damage resulting from an accident, negligent acts by you or qualified household members (on or off premises) and the acts of your pets.
Includes costs to resolve claims or defend lawsuits brought against you.

Medical Payments
Pays medical costs for people injured at your residence (other than residents of your household), regardless of liability.

Additional Living Expenses
Covers additional living expenses if a covered loss makes your living quarters uninhabitable. Coverage is based on a percentage of the amount of insurance you choose for your personal property.

Optional Coverage:
Scheduled and unscheduled coverage of important valuables is available.

Replacement CostContents replacement cost is available to pay for the cost of repairing or replacing lost or damaged items without deducting for their depreciation.

Identity ShieldSMState-of-the-art assistance in the resolution of identity theft events, advocacy services relating to the prevention of identity theft and replacement of certain important documents.

2010-10-15T10:56:00.000-05:00

October 4, 2010

Letter to the Editor
The Wall Street Journal
1211 Avenue of the Americas
New York, NY, 10036

The Complete Picture

Shift to Wealthier Clientele Puts Life Insurers in a Bind (Oct. 4, 2010) It is true, wealthier Americans spend more on life insurance than middle-income Americans – they generally need more coverage and therefore pay higher premiums. Many experts recommend buying enough life insurance to cover six times salary so the family can meet its financial obligations if the primary wage-earner dies. Clearly – larger policies will be bought more often by more affluent households.

But this doesn’t provide the complete picture. When LIMRA releases its sales results, we always give two metrics: premium and policy count. The reason we share both is because each is very important to get a complete picture of the life insurance market.
Let’s take a look at what happens when you look at policy count.

The majority of existing permanent policies are owned by middle-market consumers. The affluent (household income of $100,000 or more) own just 27 percent of existing permanent life insurance policies while 73 percent of the existing permanent policies are helping average Americans. Those earning $25,000 to $99,000 comprise 55 percent of the population, but own almost 60 percent of existing permanent policies.

If you look at new sales by policy count, consumers earning under $100,000 represent 72 percent of newly purchased permanent life insurance policies. So by this measure, it is truly middle America who are buying permanent and benefiting from it.

Recent LIMRA research found that 30 percent of U.S. households do not own any form of life insurance—a 50-year low. We also know that 75 percent of households have less than a month’s savings. What will these families do if their primary wage-earner died unexpectedly?

This is not the time to make buying life insurance less attractive. Collectively, we should be finding more ways to encourage consumers to get the coverage they need.

Finally, as researchers we know that it is critical to look at all the data before making conclusions. We encourage others to do the same.

Robert A Kerzner,
President and CEO of LIMRA, LOMA and LL Global
Windsor, Connecticut

Precious cargo on board

2010-10-05T16:37:00.000-05:00

If you have children, you know how important it is that they're secured when you're driving with them. But did you know incorrect usage of a car seat is common — and that even a minor mistake in usage can cause serious injury?1 Here are some tips that may help you use your child's car seat correctly:

Never put an infant in the front seat of a vehicle with a passenger air bag — even if you think it’s been disabled.
Route harness straps in lower slots at or below shoulder level.
Keep harness straps snug and fasten the clip at armpit level.
Make sure the straps lie flat and aren’t twisted.
Dress your baby in clothes that allow the straps to go between the legs. Adjust the straps to allow for the thickness of your child’s clothes. Don’t use bulky clothes that could increase slack.
To keep your newborn from slouching, pad the sides of the seat and between the child’s legs with rolled up diapers or blankets.
When in the car, put the car seat carrying handle down.
For the best neck protection, infants should ride in the backseat facing the rear of the vehicle until at least 1 year of age and 20 pounds. Then they can ride in forward-facing child car seats (still in the backseat). Recline the rear-facing seat to a 45-degree angle. If your child’s head flops forward, the seat may not be reclined enough. Tilt the seat back until it is level by wedging firm padding, such as a rolled towel, under the front of the base of the seat.

To keep the car seat from being thrown forward in a crash, all new seats are required to be equipped with top tether straps — a belt that’s attached to the car seat and bolted to the window ledge or the floor of the car. Tether kits are also available for most older car seats — check with the manufacturer.

For more information about infant or toddler car seats, go to the Web site of the Insurance Institute for Highway Safety. Also check out the National SafeKids Campaign which offers a free Child Car Seat Locator. Enter your child’s age and weight, and you can view a list of recommended car seats.

Is your child ready for a regular seat belt?
Children should be in an appropriate car seat or booster seat until they’re about 8 years old, unless they are already 4 feet and 9 inches or taller.2 After that, they should be properly seated with a lap and shoulder belt. Children age 12 and under should remain in the rear seat. All passengers should wear lap AND shoulder belts at all times. Laws can vary by state and municipality. See the IIHS List of State Laws for Vehicle Restraints or the Inventive Parent Car Seat Laws page.

Secure your precious cargo
Motor vehicle crashes are the number one killer of children from ages 1 to 14 and many of these deaths involve children that are unrestrained.3 Many are also avoidable with the proper use of the proper car seat. Give me a call: I can give you more information so that you can secure your precious cargo and enjoy your travels.

1Source: http://www.iii.org/Articles/Child-Safety-Seats.html
2Source: http://www.car-safety.org/faq.html#Q3
3Source: http://www.car-safety.org/faq.html#Q1

Seeking CUSTOMER SERVICE REPRESENTATIVE (CSR) - SPANISH SPEAKING

2010-10-05T10:42:00.000-05:00

Customer Service Representatives work for Farmers agents as customer service and/or administrative professionals. Responsibilities typically include office management, customer policy support (in-office and telephone), and sales support activities. Some inside sales.

By obtaining the proper licensing, customer service reps may also sell insurance products within the agent’s office. If you are bilingual, you may also qualify for other financial incentives.

Requirements:

Minimum qualifications, usually preferred by a district manager include:

• Excellent written and oral communication skills - Must be Bi Lingual (Spanish)
• Customer service oriented
• Good computer skills and proficient with Word, Excel and PowerPoint
• Excellent organizational skills
• Highly motivated entrepreneur
• High School Diploma
• Good credit history (Insurance license a plus)

Location: E TC Jester and N Loop 610 (77018) - Must be within your commuting radius
Compensation: Hourly plus commission/bonus

Do you have an umbrella?

2010-09-29T11:28:00.000-05:00

Ah, the joys of home. So many comforts — and so many risks. The dog, the teenage driver, the pool, the house parties, the monster tree that overhangs your neighbor's yard — any of these could be the stuff from which lawsuits arise. And many homeowners and auto insurance policies may not offer enough coverage for major personal-liability claims. What would you do if you accidentally caused damage or injuries which went beyond the coverage limits of your homeowners or auto insurance? What would you do if you found yourself on the wrong end of a multi-million dollar lawsuit? Naturally, most people don't expect the unthinkable to happen — but sometimes it does.

Caveat: Don’t assume that your homeowners insurance provides adequate coverage in the event you’re sued for your negligence which results in injury or damages.

The Personal Liability policy
Umbrella policies, as they are also known, supplement the liability coverage you already have which is provided by your underlying homeowners and auto insurance, and provide an extra layer of coverage up to the limits you purchase. Of equal importance, an Umbrella policy extends liability coverage to encompass certain coverage gaps left by exclusions on the basic underlying policies.

You may want to consider purchasing a Personal Umbrella policy if any of the following apply:

Your total assets exceed your underlying liability limits.
You have assets over $1 million, including property and vehicles.
You have the potential to have assets over $1 million in the future.
You earn or have the potential to earn significant income.
You are financially responsible for a young or inexperienced driver.
You frequently carpool young children.
You own or operate an aircraft or boat.
You own a swimming pool, trampoline or dog.
You own waterfront property, a farm or ranch.
You employ one or more people in your home.
You want to make sure your current assets and future earnings are protected.

Life is uncertain: Plan for it
You probably work very hard for the things you own — don’t forget to protect them. You never know when the unexpected can ruin not just your day but also your well-laid financial plans for the future. Make sure you’re prepared — don’t forget your umbrella. Call me for more information.

Hispanic Heritage Month Celebrated

2010-09-27T11:47:00.002-05:00

Farmers Agent David Lorms donated Lesson Plans and educational DVDs to Oak Forest Elementary School, Black Middle School and Lu Lu Stevens Elementary School to help celebrate and learn more about Hispanic Heritage Month, running through October 19th. Pictured with Lorms is Lu Lu Stevens Principal, Lucy Anderson.

National Flood Insurance Program extension approved

2010-09-24T16:02:00.002-05:00

WASHINGTON—The House of Representatives Thursday on a voice vote gave final approval to legislation to extend the National Flood Insurance Program for one year through Sept. 30, 2011.
Advertisement

The Senate approved the measure, S. 3814, this week.

Without congressional action, the NFIP, which has been temporarily extended several times during the past year, would have expired Sept. 30.

“A long-term extension of the NFIP has been the goal of the insurance industry all year, and we’re pleased that it now heads to the president for his signature,” an American Insurance Assn. spokesman in Washington said in statement.

President Barack Obama is expected to sign the measure shortly.

I'm single. Do I need life insurance?

2010-09-22T09:17:00.000-05:00

Question: I'm single. Do I need life insurance?
Answer: It depends

Single people often think they don't need life insurance and they're often right. But there are many factors to consider beyond marital status when deciding whether you want life insurance. Answer the following questions and see where you stand:

Do you have any dependents? If you have children, or provide support for a parent or grandparent, your death could create a serious financial hardship for these dependents. Life insurance can help provide a continued stream of income for your loved ones if you die prematurely.
Do you have a mortgage or loans held jointly with a cosigner? If so, your death would leave the cosigner responsible for the entire debt. You might want to consider purchasing life insurance to help cover these debts in the event of your death. If you have other personal debts, your creditors can make a claim for payment against any assets in your estate.
Are you at risk for any serious medical conditions? For example, if your family medical history includes certain genetic conditions, such as diabetes or certain types of cancer, you may want to consider purchasing life insurance while you’re young and healthy. Should you develop such a condition, purchasing life insurance later could be difficult, or even impossible.
If you died tomorrow, who would pay for your final expenses? For many families, even a relatively simple funeral can create a major financial burden. Life insurance can help offset these expenses.

Give me a call. We can discuss your individual situation so that you can decide if life insurance is appropriate for you. And if you feel it’s not necessary at this time, we can review your other insurance policies so you can be sure you have the coverage you want.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island

Fire Safety Tips

2010-09-21T17:26:00.001-05:00

The best way of surviving a fire is to prevent it from happening in the first place.

Here are some tips:

Keep your home free of oily rags and trash build-up. Gasoline and other flammable liquids should be stored in approved metal safety cans.
Cleaning materials should be kept in a ventilated area, away from any heat source. Vapors given off by these substances can ignite when they come in contact with a heat source, such as a pilot light.
Check lamps, appliance cords and light switches to make sure there is no faulty wiring. Never overload electrical circuits.
Allow adequate ventilation space around televisions, stereos and other entertainment equipment.
Teach your children not to play with matches. Keep matches in a closed metal container away from heat sources and out of the reach of children.
Never smoke in bed. Carelessly discarded cigarettes are the leading cause of fire deaths in the United States.
Remove all weeds, tree branches and litter from your yard.
If you have a fireplace, make sure it is properly screened and install a spark arrestor with at least a half-inch mesh on the chimney.
Daily household trash should be kept in a covered can away from any heat source. Recycle newspapers frequently.
Be a careful cook. Never wear long sleeves when you cook -- they can catch fire. Keep the handles of your pots turned inward, so the pots can't be knocked over. Never put foil or other metals in a microwave oven.

Fire safety tips
Make sure all family members know how to dial 911 in case of an emergency.
Have at least two exits from every room in your home. Invest in fire escape ladders for upstairs bedrooms.
Go through a practice drill every six months. With the whole family, practice what to do in a fire emergency.
Assign a tree or other landmark where family members can meet after they escape the burning house.
Teach children never to go back in the house. Train them not to hide from fire under beds, in closets or other places where rescuers cannot easily find them.

Smoke Detectors
The importance of smoke detectors cannot be overestimated. Most fires occur at night, while people sleep. The toxic gases from a fire can numb your senses, disorient you and kill you while you sleep. For this reason, smoke detectors are a must.
Install a detector in every bedroom and keep one centrally located on each floor of your home. Hallways and kitchens are especially good locations for smoke detectors.

Because smoke rises, mount smoke detectors either on the ceiling or high on a wall (6-12 inches from the ceiling).
Don't install smoke detectors by doors, windows or vents, where drafts could affect their performance.
Test and clean your smoke detector batteries about once a month. You'll need to replace batteries about once a year.
Never paint your smoke detector unit -- it might clog its smoke detecting sensors.
Gently vacuum your smoke detector and keep it free of dust and other foreign particles that could hinder its function.

How to Survive a Fire
If a grease fire occurs while you are cooking, do not throw water on it. Water splatters the grease and the flames. Use a dry chemical fire extinguisher or cover the fire with the pan lid.
Before opening a door, make sure there's not fire on the other side. Check the closed door for heat. If everything feels cool, brace your shoulder against the door and open it carefully. Slam it shut if heat or smoke rushes in.
Close all doors behind you. This can slow the spread of fire and smoke.
Crawl low under smoke. If you encounter smoke, use an alternate escape route. If you must exit through smoke, the cleanest air will be several inches off the floor. Crawl on your hands and knees to the nearest safe exit.
Once you are outside, do not go back into the house. Go to your family's central meeting place, then have someone use a neighbor's phone to call the fire department.
If you are trapped, close doors between you and the fire. Stuff the cracks around doors and cover vents. Wait at a window and signal for help with a flashlight or by waving a piece of light-colored cloth. If possible, call the fire department and tell them exactly where you are.
Everyone in your family should know the "Stop, Drop and Roll" rule. If your clothes catch fire, don't run! Stop where you are, drop to the ground, cover your face with your hands to protect your face and lungs, and roll over and over to smother the flames.
If you see someone on fire, quickly cover them with a blanket to smother the flames.

Your Teen Driver

2010-09-19T10:28:00.000-05:00

As a parent, it's up to you to help your teens become safer drivers. Here are some suggestions:
Choosing a vehicle: The Insurance Institute for Highway Safety, which crash-tests dozens of vehicles each year, advises parents to choose a midsize vehicle with lots of safety features such as air bags and antilock brakes. Choose the newest model your budget can afford since most of today's cars are better designed for crash protection than vehicles six to 10 years old. Before making a final choice on the vehicle your teenager will drive, check out the consumer information on car safety available from the U.S. Department of Transportation, the Insurance Information Institute, the Insurance Institute for Highway Safety and, of course, your Farmers agent.

Phase in driving privileges: Graduated licensing programs, now in force in 24 states, phase in privileges such as nighttime driving, to allow young drivers to build experience. If you don't live in a graduated licensing state, you can do the job yourself. For example, have your new driver spend at least four months driving with you in the car, then another four months driving alone before you allow him/her to drive friends.

Spell out the rules clearly: Be specific about the time they should be home, when and how many friends they can have in the car, and so on. You should always know where your new driver is going.

Spell out the consequences: Your teen needs to understand that if these obligations are not met, there will be consequences, including surrendering the car keys.

Make your driver pay: Another way to encourage mature behavior is to make your child financially responsible for buying and maintaining the vehicle.

Send them to school: It's a good idea to get your teen some supplemental driving instruction, whether it's a one-time safety course or a full-fledged driving school. Check out Farmers' teen driver education program, You're Essential to Safety (Y.E.S.), free to all young drivers.

Be sure to speak with your Farmer's agent ahead of time about adding a teen driver to your policy and review your Auto insurance coverage annually.

Peak Hurricane Season is Here - Get Flood Insurance Before a Storm Hits and It's Too Late!

2010-09-14T13:41:00.002-05:00

Peak Hurricane Season is Here - Get Flood Insurance Before a Storm Hits and It's Too Late!

Read the important information below to learn about peak hurricane season flood risks and FloodSmart tools you can use to encourage you to protect yourselves with flood insurance.

Recent heavy rains across the United States serve as another reminder to you that NOW is the time for you to protect your families, homes and businesses by obtaining flood insurance. Late summer and early fall marks the beginning of peak hurricane season - the most active time of the year for hurricanes and tropical storms - and property and business owners need to be prepared should a storm hit your community in the upcoming months. Most homeowners' insurance policies do not cover flood damage and once purchased, there is typically a 30-day waiting period for a flood insurance policy to become effective.

The Risk is Real

Hurricanes and tropical storms bring drenching rains and high winds that can cause significant damage to a home or business and its contents - and recent violent weather and subsequent flooding in Oklahoma and Tennessee demonstrate that floods are not limited to coastal areas. The largest amounts of rainfall from hurricanes are often produced by slow moving storms that move inland. Some of the worst damage from recent hurricanes has occurred hundreds or thousands of miles from the coast - as far north as New York in the case of Hurricane Ivan in 2004 and through much of the Midwest and into Pennsylvania because of Hurricane Ike in 2008.

Costly Consequences

Eight of the top ten most expensive federally-declared disasters have been caused by hurricanes. Just inches of water can cause tens of thousands of dollars of damage and last year, the average individual flood insurance claim was nearly $28,000. Without flood insurance protection, many property owners may have to absorb the financial losses on their own, potentially draining their savings.

Protect Yourself

Individuals and business owners should get covered before a storm could impact their community and home. You should also know that flood insurance is more affordable than you may think. The average flood insurance policy is around $579 a year and in moderate-to-low-risk areas, Preferred Risk Policies start as low as $119 a year (that's equal to $10 a month or 33 cents a day).

Tools You Can Use

Visit FloodSmart.gov to find essential information and tools that will help remind your customers to prepare for hurricane season.

Cost-of-Flooding Tool: allows property owners to see how expensive just a few inches of water can be to re-building their home or business.

Risk Assessment Tool: allows users to enter their address into an online tool to learn their property's flood risk.

Hurricane Flooding Fact Sheets: explains the realities of hurricane season risks.

Oak Forest Elementary School Parents night

2010-09-09T21:21:00.003-05:00

Oak Forest Elementary School held parents night on 9/8/2010 and 9/9/2010. Farmers Agent David Lorms participated by handing out child safety information, safety coloring books and Child Identification Kits to log critical information about your child as the first step in an Amber Alert. Pictured with Lorms is Assistant Principal, Rachel Reed.

10 Things to Know about Flood Safety

2010-09-07T11:21:00.001-05:00

Flooding can occur as streams and rivers overflow their banks, when dams or levees break, with run-off from deep snow cover, or any time there is rainfall with significant duration and intensity.

Keep these facts in mind to stay alive and dry.

Flash floods can come rapidly and unexpectedly. They can occur within a few minutes or hours of excessive rainfall, or when a dam or levee fails and even a sudden release of water held by an ice or debris jam. Be cautious during storm seasons, or any time that flooding is common in your area.

You may not have warning that a flash flood is approaching.
Do not drive unless absolutely necessary.

Do not drive through flooded areas. If you see a flooded-out road ahead, turn around. Find another route to your destination.

If there is no other route, get to higher ground and wait for the waters to subside.

Even if the water appears shallow enough to cross, don't try it. Water hides dips in the road. Worse yet, there may be no road at all under the water.

Flooding can scour away the entire road surface and a significant amount of ground beneath.

If your car stalls, abandon it immediately and climb to higher ground.

Six inches of water will reach the bottom of most passenger cars, causing loss of control or possible stalling.

One foot of water will float almost many vehicles.

Two feet of rushing water can sweep away most vehicles — including SUVs and pick-ups.

Preparing for an Insurance Adjuster an Important Step in Recovery

2010-09-01T11:25:00.000-05:00

Showing your home's storm damage to an insurance adjuster should be a feeling of relief rather than high anxiety. An adjuster arriving at your residence means you are that much closer to having your home repaired and your life returned to normal.

"We have to visit people at absolutely the worst time of their life. Their house is usually damaged or destroyed, their lives have been turned upside down and they're not sure what to expect when they meet with us," said Bob Schach, branch manager of Custard Adjusters in Austin. "Nine times out of 10, we get along great and we leave families knowing they are going to be taken care of."

Schach, who has handled hundreds of claims from Hurricanes Rita and Ike, says homeowners have some misconceptions about adjusters. "They want a check as soon as they see us," Schach said. "We don't do that."

Insurance adjusters strive to respond first to the homes of policyholders who have reported the most severe damage. An adjuster may need an entire day to record all of the damage that to the interior and exterior of the home and contents. The adjuster must file his report with his office and the insurance company who will double check the damage, look at the cost of materials, review the policy's limits and coverages and make the appropriate payments as quickly as possible.

The best advice for homeowners is to document their damage before adjusters arrive.

"If homeowners had an inventory list of every item damaged inside their home, it could save adjusters up to two weeks in preparing their reports," says Richard Myers, vice president of Brush Country Claims in Alice. "The personal property list should include a description of the item, where and when they purchased it, how much they paid for them and a receipt for any expensive damaged item. Any photos or videos are helpful."

Pictures and information on the contents of one's home should be kept off site, outside the home in another location for safekeeping, if possible. If kept inside the house, the documents could also be destroyed during the storm.

Myers said adjusters are just one step in the process of bringing a claim to a conclusion.

"In doing their job, adjusters are also dealing with the area's catastrophic conditions. They, too, must find a place to stay at the end of a long day. Service stations, restaurants and suitable living conditions can be few and far between," Myers said. "The adjuster and the homeowner should work as a team to bring the claim to a conclusion."

Homeowners are kept up to date on the content of the adjuster's report and are given ample opportunities to voice their opinion for re-inspections or point out additional losses throughout the process.

One of the first checks a homeowner with major covered damage may see is an advance check to cover additional living expenses or ALE. Some dwelling policies have this coverage for primary residences. This check is intended to cover additional costs incurred by the insured to live elsewhere due to covered damage that makes the home unlivable. An advance payment could also be for temporary repairs that have been made, as well as major repair to the home.

If additional or supplemental covered damage is found after the initial estimate, the policyholder can request that the adjuster get back involved for review and consideration of a supplemental payment.

Not all homeowners get along with their insurance adjusters. Homeowners have the right to ask their insurer for another adjuster if the two parties simply can't work together.

The life of an adjuster is not easy. Myers, who has handled catastrophic claims for nearly 20 years, said for claims to be handled smoothly, homeowners must have patience and communicate.

"Homeowners must share with adjusters all of the information they have on the damage to their home, what may have happened and any stories that can contribute to the decision making process on their claim," Myers said.

Adjusters are the foot soldiers for insurance companies. If they don't do their job, it's the insurance companies that are blamed. But they must be doing a good job. Hurricane Ike produced an estimated 800,000 claims and justified complaints to the Texas Department of Insurance numbered 2,683, representing 0.33 percent. Hurricane Dolly resulted in 48,000 claims with 72 complaints or 0.17 percent.

Source: Insurance Council of Texas

Lu Lu M. Stevens Elementary School Parents Night

2010-09-01T11:09:00.000-05:00

Lu Lu M. Stevens Elementary School held their parents night on Tuesday August 31, 2010. On hand was Farmers Agent David Lorms, giving out safety information and Child Identification Kits to parents. Pictured with Lorms is parent Lizbeth Montes.

5 years after Katrina, homeowners insurance costs more

2010-08-26T15:31:00.002-05:00

Marshall Hill stands in his rebuilt master bedroom. Flooding after Hurricane Katrina damaged his home.
By H. Darr Beiser, USA TODAY

By Sandra Block, USA TODAY

Five years after Hurricane Katrina leveled a large part of the Gulf Coast, homeowners as far away as Maine are still paying the bill.
Home insurance rates for some coastal areas have shot up 30% or more. Thousands of homeowners who live along the East Coast have had their policies canceled. And when the next disaster hits, many homeowners will be forced to bear a greater share of the cost of rebuilding.

Insurance industry executives say the unprecedented cost of Katrina, combined with predictions of more violent weather in the future, forced insurers to review their exposure to vulnerable areas.

Insurance companies "decided they couldn't be all things to all people," says Don Griffin, vice president of personal lines for the Property Casualty Insurers Association of America. "Some of the very large companies looked at their whole coastline and realized even New York has a fairly significant exposure should a major event hit there."

HURRICANE KATRINA: Five years later
FEDERAL INITIATIVE: Huge losses put flood insurance plans in the red

Homeowners, meanwhile, are still dealing with the limitations of their pre-Katrina coverage. Marshall Hill, 46, of D'Iberville, Miss., says State Farm promptly paid his claim after the hurricane hit his four-bedroom, 2,000-square-foot ranch house. But the insurer covered only about $48,000 of the $125,000 in damages to his home. Damage caused by rising water wasn't covered by his homeowners policy, and Hill didn't have federal flood insurance.

Hill took out a second mortgage and a Small Business Administration disaster assistance loan to make up the difference between his insurance payout and the cost of rebuilding the home. Hill now has a federal flood insurance policy that costs about $200 a year. He says he didn't have any trouble getting another policy from State Farm for not much more than he paid before Katrina.

"As ugly as the whole thing was, we actually felt kind of fortunate," Hill says.

Others haven't been as lucky. What has changed:

Higher rates

From 2005 through 2007, the latest figures available, the average premium for homeowners insurance in the USA increased 7.6%, according to a survey by the National Association of Insurance Commissioners. But the average doesn't reflect what many homeowners have experienced. Some inland states saw much more modest increases, while homeowners in coastal areas experienced double-digit rate increases.

In Florida, for example, average premiums jumped 41% from 2005 through 2007, according to the NAIC survey. Average rates in Louisiana rose 22%. Rhode Island homeowners saw their rates go up by nearly 12%, while average premiums for New York homeowners rose 11%.

"After the insurance industry looked at the devastation caused by Katrina, it said the underwriting price (for homeowners insurance) should be higher than it is," says Bill Sinn, insurance industry director for Pitney Bowes Business Insight.

Homeowners who live far from the ocean shouldn't assume they're immune to disaster-related rate increases, says Ross Buchmueller, chief executive officer at PURE (Privilege Underwriters Reciprocal Exchange), an insurer that provides insurance to homeowners with high-end coastal properties. After coming ashore in Texas in September 2008, Hurricane Ike moved inland and caused $1 billion in insured losses in Ohio, he says. That has led insurers to review their pricing models to determine whether they've accounted for the risk of inland storms, he says.

An exodus by large insurers

Starting this month, State Farm Florida will drop 125,000 Florida homeowners whose policies are up for renewal, representing about 15% of its business in that state. State Farm hasn't written any new policies in Florida since February 2008.

It could have been worse: State Farm threatened to pull out of Florida altogether last year after state regulators turned down a request for a 47% rate increase. Under a consent order reached with regulators in December 2009, the insurer agreed to keep 550,000 State Farm policyholders and raise rates by about 15%.

Florida was hit by eight hurricanes from 2004 through 2005, says State Farm spokesman Chris Neal. The costs of those disasters made it unprofitable for State Farm to stay in Florida, Neal says.

While the consent order will stabilize State Farm in the short term, it doesn't guarantee the insurer will remain in Florida, Neal says. "When you're paying out more than you're taking in, you can't sustain that forever."

Similar pullbacks have occurred throughout the country, including in regions that haven't experienced a major hurricane in years. Since Katrina, major insurers such as State Farm, Allstate and MetLife have reduced coverage in parts of New York, Connecticut, New Jersey, Rhode Island, Maryland and Massachusetts.

Katrina, along with a record number of hurricanes in 2004, led some insurers to conclude "they were too exposed to coastal areas given the premiums they were able to charge," says Robert Hartwig, president of the Insurance Information Institute, an insurance-industry-funded educational organization.

Consumer advocates contend that major insurers have used Katrina and other disasters as an excuse to get out of a less-profitable segment of their business. For large insurers, "auto insurance is a lot more profitable than homeowners" insurance, says Amy Bach, executive director of United Policyholders, a consumer rights group. "It's just a business strategy."

New players

While some major insurers have moved out of coastal areas, others have stepped in to fill the vacuum, Hartwig says. "Coverage is available, and it remains affordable in these areas, although it's more expensive than it was five years ago," he says.

Howard Mills, director and chief adviser of Deloitte's Insurance Industry Group and former superintendent of the New York State Insurance Department, agrees. The impact of non-renewals in coastal states "was not nearly as great as people would have thought, because other insurers really jumped into the breach," he says.

For example, PURE, which insures homes valued at $1 million or more, now provides insurance to about 8,000 families in 17 states. The company's decision to launch its business in Florida in 2007 "was directly related to the lack of availability" of insurance in that state for high-end homes, Buchmueller says.

But some of the new players are small and untested, raising questions about their ability to withstand the cost of a major disaster. For example, some start-up companies that are writing homeowners policies in Florida are financially unstable, says Weiss Ratings, an independent provider of ratings for financial institutions.

Royal Palm Insurance and Edison Insurance, both of which opened for business in Florida in 2006, are rated E+, or "very weak." People's Trust Insurance, which began operating in 2008, is rated D-, or "weak."

"The percentage of companies rated E+ that subsequently are subject to regulatory takeover by insurance commissioners is very high," says Martin Weiss, president of Weiss Ratings. "They go bankrupt at a high rate."

Michael Gold, chief executive and founder of People's Trust, says his company, which has 30,000 policyholders, has sufficient capital to withstand a hurricane of even greater magnitude than Katrina. "We're not the teeny company Weiss thinks we are, and they really don't have an idea of all the capital we have," he says.

Royal Palm and Edison Insurance didn't respond to requests for comment.

Higher deductibles

Insurers that are still providing coverage in coastal and other high-risk areas are increasingly charging a percentage-based deductible, which could cost some policyholders thousands of dollars after a hurricane, earthquake or hailstorm. Unlike a flat deductible, which is based on a specific amount, such as $500, a percentage deductible is based on the insured value of the home. For example, if the insured value is $200,000 and the policy has a percentage-based deductible of 1%, the homeowner could be forced to pay $2,000 out of pocket.

In most cases, percentage deductibles are limited to certain types of damages, such as hurricane-related claims, Mills says: "It's fairly specific and is intended to spread the risk around." While percentage-based deductibles have been around for years, their use has risen since Katrina, he says.

Bach says the insurer that covers her parents' Long Island, N.Y., home switched them from a $500 flat deductible to a percentage-based deductible of 5% after Katrina. "We felt lucky they didn't get dropped," she says.

Emphasis on prevention

Griffin says Katrina demonstrated the need for tougher building codes and standards, particularly in vulnerable areas. Some homes that were built using more stringent construction standards sustained minor roof damage from Katrina, while older homes located right across the street were wiped out, he says.

Under a law passed by the Florida Legislature in 2008, some owners of high-end homes risk losing their coverage from state-owned Citizens Property Insurance unless they install hurricane-resistant windows and doors. Citizens is the largest property insurer in Florida.

But a new report by the Institute for Business & Home Safety, a research organization funded by the insurance industry, said states haven't done enough to promote disaster-resistant construction.

"Building codes along the Gulf Coast today are mostly disappointing, with only Louisiana getting high marks for taking proactive steps to adopt a statewide building code," Wanda Edwards, IBHS' director of code development, said in a statement.

Hill says he believes his rebuilt home is strong enough to withstand another hurricane — and will be in even better shape after he installs a more hurricane-resistant roof next summer. "This is home," he says. "Mother Nature is not going to run me off."

Homeowners Coverage Knowledge Gap Wide Among Consumers

2010-08-24T12:38:00.001-05:00

Many Americans admit to having a knowledge gap when it comes to what their home insurance actually covers, according to a new survey.

Nearly one third (31 percent) of Americans don't know how much their most valuable assets -- their homes -- are insured for, and an additional 46 percent don't know how much coverage they have for their homes' contents, such as furniture and clothing, say the results of a survey by Zogby International for MetLife Auto & Home. Additionally, many homeowners aren't aware of coverage overlaps that may exist, which could result in opportunities to save money.

The first of a two-part "Insurance Literacy" survey, tested consumer knowledge of insurance basics, including homeowners, condo, and renter's insurance.

Common misconceptions that could lead to coverage gaps were:

-- Thirty percent of homeowners believe their insurance coverage is based on the current market value of their home. Actually, the available coverage limit for homeowners insurance is based on the cost to rebuild the home, a mistake that could lead to confusion for homeowners trying to evaluate whether they have the right amount of insurance.

-- More than two thirds (71 percent) of those surveyed believe insurance pays for the full cost to rebuild their property in the event of a major loss, such as a fire or other natural disaster. But nearly all insurance companies "cap" the amount paid to rebuild the dwelling following a total loss, unless additional coverage is purchased. Furthermore, the coverage is subject to a deductible, and certain causes of loss, such as water damage caused by the natural disasters of flooding, are excluded completely.

-- Almost three-quarters (73 percent) believe insurance will pay the full cost to replace personal belongings in the event of a loss. However, depreciation is usually factored in, unless optional replacement coverage is selected, and the coverage, regardless of the chosen settlement method, is subject to a deductible.

-- Sixty percent believe insurance will pay for the full cost of replacing valuables, such as jewelry and collectibles. Most insurance policies contain a payment cap for replacing valuables, although additional coverage can be purchased, and the coverage is subject to a deductible.

-- For a major loss, nearly two-thirds (64 percent) of those surveyed expect their insurance to cover any building code mandated upgrades that are necessary. Without an endorsement/rider, most home insurance does not cover required upgrades located in an undamaged portion of the home.

"More than two-thirds of consumers surveyed also said they'd rather pay a higher premium than be told that a loss isn't covered," said Bill Moore, president of MetLife Auto & Home. "To ensure this doesn't happen, consumers can find the best value by learning more about their policies and selecting the coverage that best meets their needs, rather than simply shopping for the lowest premium."

On a positive note, with purse strings tight, opportunities exist for consumers to become more aware of what their current policies do cover in the event of a loss, to avoid insurance overlaps and unnecessary out-of-pocket expenses. For example:

-- Electronically downloaded and stored entertainment, such as music, ring tones, etc., can be expensive to replace without easy access to free re-downloads. However, more than 90 percent of homeowners didn't know that insurance can extend coverage to electronic data.

-- Almost half (47 percent) didn't realize there's no need to secure additional coverage to insure the personal property of college-age children living on campus. This is covered under the standard homeowners contract, subject to its terms and conditions.

-- Many homeowners would be surprised to learn that damage to appliances and wiring from a power surge would be covered by their insurance policy. More than half (59 percent) didn't think it would -- limiting out-of-pocket expenses to a deductible.

Natural Disasters

Many homeowners exhibit confusion about insurance coverage for natural disasters and unforeseen occurrences. The majority of homeowners understand that flood damage is written on a separate policy from their standard insurance policies. However, many consumers are still misinformed -- or unsure -- about the coverage available for other types of events.

In some cases, homeowners are aware of the potential for a loss, but don't realize what coverage they have against a particular hazard. Among other things:

-- Although 83 percent believe foundation damage from earth movement is very serious or somewhat serious, only 37 percent know they aren't covered for this under the standard homeowners policy.

-- More than a quarter (28 percent) incorrectly believe they'd be covered for an earthquake or volcanic eruption, and the same amount aren't sure one way or the other. Most standard policies exclude this peril.

-- For water damage from a sewer or sump-pump back up, 67 percent of homeowners believe this would be covered. Without the appropriate rider, most policies don't cover this.

Read more: http://www.insurancejournal.com/news/national/2010/08/24/112704.htm#ixzz0xXuyFkC8

Vietnamese Speaking Customer Service Rep (E TC Jester and Loop 610 - Houston, TX)

2010-07-21T16:14:00.001-05:00

Customer Service Representatives work for Farmers agents as customer service and/or administrative professionals. Responsibilities typically include office management, customer policy support (in-office and telephone), and sales support activities.

By obtaining the proper licensing, customer service reps may also sell insurance products within the agent’s office. If you are bilingual, you may also qualify for other financial incentives.

Minimum qualifications:

• Excellent written and oral communication skills (Fluent in both Vietnamese and English)
• Customer service oriented
• Good computer skills and proficient with Word, Excel and PowerPoint
• Excellent organizational skills
• Highly motivated entrepreneur
• High School Diploma
• Good credit history (Insurance license a plus)

So why wait? Explore an exciting new opportunity as a Customer Service Representative in a Farmers agency.

Location: TC Jester and Loop 610

Please do not contact job poster about other services, products or commercial interests.

Location: E TC Jester and Loop 610 - Houston, TX
Compensation: Hourly plus commission/bonus
Principals only. Recruiters, please don't contact this job poster.
Please, no phone calls about this job!
Please do not contact job poster about other services, products or commercial interests.

Burglary Claims in Texas Jump 9% in 2009

2010-07-15T12:31:00.003-05:00

The number of home burglary claims for Insurance customers in Texas jumped 9 percent last year. With many Texans taking trips this summer, the insurer is encouraging people to keep their homes locked-up and their vacation plans under wraps.

In a survey of police departments across the state, it was found flat screen televisions are typically the number one target in home burglaries, followed by laptops, jewelry and cash. Some surveyed departments reported an increasing number of home burglaries that are tied to organized criminal activity, like street gangs.

Police reported these suspects have "shopping lists" of items to steal and will back into a victim's driveway and knock on the door. If no one answers, police say the perpetrators kick in the door, take items and leave within a few minutes. After the burglary, most of the items end up at an organized fencing operation where they are transported to other cities, states and across the border.

"Not only do these home burglaries disrupt homeowners' lives because their valuables are stolen, but they create a potentially dangerous situation if the theft is interrupted," said David Christopher, an agent in the Dallas-Fort Worth area. "That's why it's so important for homeowners to take precautions because these thefts can happen anywhere."

Home Theft Breakdown by City

Home theft numbers increased in most major Texas cities in 2009.

City Home Theft Change from 2008 to 2009
Austin +47%
Dallas-Fort Worth +7%
El Paso -16%
Houston +8%
Lubbock +1%
Rio Grande Valley +55%
San Antonio +6%
Waco-Temple-Killeen +5%

Read more: http://www.insurancejournal.com/news/southcentral/2010/07/14/111580.htm#ixzz0tm0STLwA

ALERT - Hurricane Alex

2010-07-13T11:33:00.001-05:00

ALERT - Hurricane Alex

Hurricane Alex has made landfall. We want to make sure all Farmers policyholders with storm damage are aware of several important phone numbers. If you have damage to your home or auto, please call Farmers' 24-hour claims hotline, 1-800-HelpPoint (1-800-435-7764) for immediate assistance.

Foremost Insurance customers should file their claim by calling: 1-800-527-3907.
Bristol West Insurance customers should file their claim by calling: 1-800-274-7865.
Customers of Texas Windstorm Insurance Associationwho wish to file a claim: call 1-800-788-8247.
Customers with a National Flood Policy serviced by a Farmers agent, please call 1-800-759-8656.

For further updates, please visit Farmers Catastrophe Page

Flood Insurance Program Back in Business Until Sept. 30

2010-07-01T09:15:00.000-05:00

The U.S. Senate last night approved a temporary reauthorization of the federal flood insurance program until Sept. 30. The reauthorization of the National Flood Insurance Program (NFIP) is retroactive to June 1, the date the program was halted.

National Flood Insurance Program Reauthorization News

2010-06-30T14:26:00.001-05:00

As you probably know, the National Flood Insurance Program (NFIP) expired on midnight May 31, 2010 and has not been reauthorized by Congress. Consequently, the Program is experiencing a hiatus – a period without authority to:

Issue increased coverage on existing policies for which endorsement and premium payment dates are on or after June 1, 2010, or Issue renewal policies for which the renewal premium is received by the company on or after June 1, 2010, and after the end of the 30-day renewal grace period, until Congress reauthorizes the Program.

While awaiting Congressional reauthorization, FEMA is issuing the guidance below. For the most up-to-date information on the status of the NFIP please visit http://www.fema.gov/business/nfip/nfip-reauth.shtm or call the FEMA News Desk at 202-646-3272.

New Policies

New policies for which the application was completed on or before May 31, 2010, and the application and premium payment were received within 10 days of the application date, will be issued for coverage and will become effective on the requested effective date, in accordance with the applicable waiting period rules.

For loans closing prior to the first day of hiatus, when the application is dated on or before closing and the premium payment is from the escrow account (lender’s check), title company, or settlement attorney, and is received within 30 days from the closing date, the policy can be issued effective the date of the closing.

For loans closing prior to the first day of hiatus, when the application is dated on or before closing and the premium payment is not part of the closing (i.e., the applicant or applicant’s representative check or credit card) and the application and premium were received within 10 days of the application date, the policy can be issued effective the date of the closing only if the presentment of premium was on or before the closing date. If the presentment of premium (check or credit card date) was on or after June 1, 2010, the policy cannot be issued, even though the application and closing occurred prior to the hiatus.

For loans closing on or after the first day of hiatus, when the application is dated prior to the hiatus and the presentment of premium is prior to the hiatus, the policy may be issued effective at closing so long as premium is received within 10 days of the closing date.

As always, the starting dates of NFIP coverage depend on the applicable flood insurance waiting period.
Claims

Policies that are in force before midnight of the last day of effective Program authorization will remain in force, and claims under those policies are to be processed and paid as usual afterwards (once hiatus begins).

Claims for covered losses occurring during a hiatus, on existing policies and on policies issued effective after the last day of effective authorization, are to be processed and paid as usual.

WYO Companies may investigate claims under a reservation-of-rights letter or a non-waiver agreement, up to the point of payment. Under either, WYO Companies would reserve the right not to pay the claim if Congress does not reauthorize the NFIP while continuing the investigation of the claim.

If reauthorization is granted retroactively, WYO Companies can issue policies effective as of the date they receive payments (subject to applicable waiting periods), and claims for covered losses can be processed.

Determining Payment Receipt Dates, New Policy Premiums, Renewal Policy Premiums, Added Coverage Endorsements

The controlling factor in determining payment receipt dates for new policy premiums, renewal policy premiums, or added coverage endorsements is when the insurance company receives payment, not the standard mail postmark.

However, proof of mailing receipts or third-party receipts that WYO Companies receive through certified mail or from entities such Federal Express (FedEx), United Parcel Service (UPS), and courier services do serve as payment receipt dates.

There will be no interruption in coverage if a customer mails the premium and the WYO Company receives it on or prior to midnight of the last day of effective Program authorization. See the exception listed below under Hiatus Scenarios, where the WYO Company is allowed to issue or renew policies even if the premium is received after a hiatus begins.

Hiatus Scenarios

Policies without a 30-Day Waiting Period

If the reauthorization is not retroactive to the first day of the hiatus, policies without a 30-day waiting period would become effective on the date the reauthorization is effective. This rule applies to loan closings occurring on or after the first day of the hiatus.

Policies with a 30-Day Waiting Period

If the reauthorization is not retroactive to the first day of the hiatus, policies with a 30-day waiting period would become effective 30 days after Congress has reauthorized the NFIP.

Renewals

If the renewal offer was issued prior to authorization expiration, and the renewal premium is received before or within the 30-day grace period, the policy can be renewed even if the renewal premium was received after authorization expiration. The same rule applies on an underpayment notice issued before authorization expiration.
WYO Companies are no longer authorized to renew policies if the premium is received on or after the first day of the hiatus and after the end of the 30-day renewal grace period.

Cancellations

Existing policies can be canceled during the hiatus in accordance with valid NFIP cancellation reason codes.
Assignment of Flood Policies

An existing policy can be assigned provided the insured signs and dates the endorsement request.

For more details and FAQs concerning the NFIP reauthorization and how it affects the processing of flood insurance, go to http://www.fema.gov/pdf/nfip/w_10063.pdf.

Please email us at info@femafloodsmart.com with any questions about NFIP and FloodSmart.

If Today's Bid Fails, Next Likely Vote to Restart Flood Insurance: July 12

2010-06-30T12:49:00.000-05:00

The future of the National Flood Insurance Program (NFIP) remains in limbo even as Hurricane Alex makes its way to the Texas coast today.

Washington lobbyists say a vote could come today but if that doesn't happen it could be until July 12 or thereafter before another vote is possible since Congress will not be around during the July 4th holiday.

The NFIP expired on June 1, the first official day of hurricane season. Since then, flooding has occurred in several states.

On June 23, the House of Representatives passed another temporary extension of the NFIP, good through Sept. 30, 2010, but the Senate has failed to take action so far.

Even if the Senate passed an NFIP extension, a flood insurance policy normally does not go into effect for 30 days after the policy is purchased, further underscoring the importance of renewing the program as quickly as possible, says the National Association of Insurance Commissioners (NAIC). The NAIC has sent a letter to House and Senate leaders urging immediate action to extend the National Flood Insurance Program (NFIP). In the letter, regulators stressed that timing is negatively affecting consumers.

"As state regulators, we are deeply concerned with the impact the nearly month-long lapse has caused for consumers and future flood victims across the country," said Jane L. Cline, NAIC president and West Virginia Insurance Commissioner. "It is imperative that Congress act to quickly to extend the program so that consumers can protect themselves."

Blain Rethmeier, senior vice president for public affairs for the American Insurance Association, says right now the future of the NFIP remains in limbo with no clear legislative path for a retroactive extension of the program.

"There is a slim chance the Senate will have an opportunity to pass the short term extension, but with Senator Byrd's funeral, it looks unlikely," Rethmeier said. "We very well could go into the July 4th recess without any resolution."

Sen. David Vitter of Louisiana brought the NFIP extension through Sept. 30 to the Senate floor for unanimous consent yesterday, according Matt Brady, director of media relations for the National Association of Mutual Insurance Cos. (NAMIC). But Sen. Dick Durbin of Illinois objected and offered the "extenders" bill, legislation that would extend the program through the end of the year but also includes other provisions that have drawn objections for increasing the budget deficit, according to Brady. Brady said Sen. Vitter then objected to the extenders bill.

"It's possible that it could be brought to the floor for unanimous consent again today," Brady said, but cautioned that if nothing happens today, the Senate would be less likely to take action tomorrow because of the memorial service planned for the late Sen. Robert Byrd. "They're also out all next week, so if they adjourn without extending the program nothing can happen until July 12 or 13 at a minimum."

The program has been unable to issue new or renewal policies since it was shut down May 31, although it is still paying claims. It is the fourth time in the past year that the program has been interrupted due to the failure of Congress to reauthorize it for an extended period.

Read more: http://www.insurancejournal.com/news/national/2010/06/30/111206.htm#ixzz0sMMwu8kr

Topical Storm Alex

2010-06-29T16:00:00.001-05:00

The latest reports still show TS Alex heading for landfall just south of
the Texas – Mexico boarder. Currently the storm is moving at 8 miles per
hour with sustained wind speed of 70 miles per hour. It is estimated that
the storm will peak at 97 mile per hour winds, just above the CAT 2
threshold of 95 miles per hour. Once the eye has developed we should
receive better reports on where the storm will make landfall. Alex is
expected to become a hurricane today with an estimated landfall of Thursday
still in the forecast.

Texas Prepares as Tropical Storm Alex Heads Toward Hurricane Status

2010-06-29T14:57:00.000-05:00

As of 10 a.m. CDT on June 29, Tropical Storm Alex was nearing hurricane strength in the western Gulf of Mexico and the National Hurricane Center (NHC) expects it to reach hurricane status later in the day. The storm is forecast to make landfall near the Mexico/Texas border late on June 30.

Risk Management Solutions reports that Alex's potential track and intensity are similar to that of Hurricane Dolly, which made landfall near Brownsville, Texas, in July 2008 and caused more than $500 million in damage. Dolly caused most of its damage to South Padre Island before coming ashore causing additional wind and flood damage, according to the Insurance Council of Texas.

When and if Alex is declared by the NHC to have reached hurricane status, the Texas Windstorm Insurance Association - the insurer of last resort along the Texas coast - will cease accepting applications for coverage as of 12:01 a.m. on the day hurricane status is declared.

Advertisement
In Texas, hurricane warnings extend along the coast from south of Baffin Bay to the Rio Grande. A tropical storm warning is in effect from Baffin Bay to Port O'Connor.

In advance of the storm, Gov. Rick Perry issued a disaster proclamation for 19 Texas counties and ordered the pre-deployment of state resources, such as the National Guard and other emergency response professionals and equipment.

The governor's proclamation listed Aransas, Bee, Brooks, Cameron, Duval, Hidalgo, Jim Hogg, Jim Wells, Kenedy, Kleberg, Live Oak, McMullen, Nueces, Refugio, San Patricio, Starr, Webb, Willacy, and Zapata as being potentially vulnerable to impact from Alex. Perry also called upon the following counties to assist in the state's response to the storm: Atascosa, Bexar, Comal, Guadalupe, Medina and Wilson.

Brownsville, Texas, and Matamoros in Mexico are the largest cities located close to the projected landfall area. Brownsville has a population of around 140,000 and Matamoros, around 420,000, according to RMS. The popular resort area of South Padre Island in Texas is likely to be impacted, as well.

"Alex could become one of the earliest hurricanes in the season to hit Texas," according to Mark Hanna, a spokesman for the Insurance Council of Texas. "Ever since they began naming hurricanes in 1954, only two hurricanes have struck Texas before July 1."

Hurricane Audrey struck the Sabine Pass with 100 mile per hour winds on June 27, 1957, and Hurricane Bonnie struck Sea Rim State Park with 87 mile per hour wind gusts back on June 26, 1986

Here’s what you can do to stay safe during a flood:

2010-06-29T12:52:00.000-05:00

Protect Yourself and Your Home

If flooding occurs, go to higher ground and avoid areas subject to flooding.

Do not attempt to walk across flowing streams or drive through flooded roadways.
If water rises in your home before you evacuate, go to the top floor, attic, or roof.

Listen to a battery-operated radio for the latest storm information.

Turn off all utilities at the main power switch and close the main gas valve if advised to do so.

If you’ve come in contact with floodwaters, wash your hands with soap and disinfected water.

What can I do to protect my home and family from a hurricane?

2010-06-29T12:27:00.002-05:00

What can I do to protect my home and family from a hurricane?
Besides insuring your property, there are things you can do to minimize potential loss to your home and ensure your family's safety.

Develop a Family Plan
http://www.floodsmart.gov/floodsmart/pdfs/Family_Plan.pdf

Create a Disaster Supply Kit
http://www.floodsmart.gov/floodsmart/pdfs/Disaster_supply_kit.pdf

Have a Place to Go
http://www.floodsmart.gov/floodsmart/pdfs/Have_a_Place_to_Go.pdf

Secure Your Home
http://www.nhc.noaa.gov/HAW2/english/retrofit/secure_home.shtml

Make a Pet Plan
http://www.floodsmart.gov/floodsmart/pdfs/Pet_Plan.pdf

Prepare for the Possibility of a Flood
http://www.floodsmart.gov/floodsmart/pages/preparation_recovery/before_a_flood.jsp

Make sure any photos or videos of all of your important possessions are in a safe place. These documents will help you file an accurate and comprehensive flood insurance claim.

Store important documents and irreplaceable personal objects (such as photographs) where they won't get damaged. If major flooding is expected in your area, consider putting them in a storage facility.

Remember to talk to your insurance agent if you have questions or would like additional information.

House Passes Flood Insurance Extension; Senate Must Still Vote

2010-06-23T11:47:00.000-05:00

The House of Representatives has passed another temporary extension of the National Flood Insurance Program until Sept. 30, 2010.

The program has been suspended from issuing new policies since May 31. Reauthorization provisions have been embedded in controversial legislation on jobless benefits and tax breaks that has been twice voted down in the Senate.

How Thieves Are Planning On Hacking Into Your Car

2010-06-15T13:40:00.003-05:00

Securing your vehicle used to consist of making sure all the doors were locked, keeping valuable items hidden out of sight and parking it in a safe, preferably off-street location.

But a new generation of cars includes more tech wizardry than a jumbo jet, raising consumer concerns that vehicles are more vulnerable than ever to light-fingered criminals. In these times, however, those light fingers are more likely to be twiddling on a laptop or remote-entry system than sticking a wire clothes hanger through a cracked window.

A new study proves that the movement away from pure mechanization to digitization is exposing us to new opportunities for vulnerability. It's becoming increasingly easier to access all vehicles controls from one central location. The car's ECU, or electronic control unit, is the brain of your grocery getter. A team of researchers from The University of Washington in Seattle and The University of California San Diego recently took on the task of seeing if they could control a car's systems through its ECU.

The two lead researchers for the project tested two identical 2009 model year vehicles (they did not reveal the name of the car), plugging their laptops into the controls for the ECU and running a software system. Their findings show that there are two main hacking threats to you car:

- Physical Access: "Someone -- such as a mechanic, a valet, a person who rents a car, an ex-friend, a disgruntled family member, or the car owner -- can, with even momentary access to the vehicle, insert a malicious component into a car’s internal network via the ubiquitous OBD-II port (typically under the dash). The attacker may leave the malicious component permanently attached to the car’s internal network or, as we show in this paper, they may use a brief period of connectivity to embed the malware within the car’s existing components and then disconnect."

- Wireless interfaces: "In our car we identified no fewer than five kinds of digital radio interfaces accepting outside input, some over only a short range and others over indefinite distance. While outside the scope of this paper, we wish to be clear that vulnerabilities in such services are not purely theoretical. We have developed the ability to remotely compromise key ECUs in our car via externally-facing vulnerabilities, amplify the impact of these remote compromises using the results in this paper, and ultimately monitor and control our car remotely over the Internet."

After running tests using software with their laptops plugged in, the researchers were able to disable braking systems, control main vehicle functions and even turn off the engine, all while the test vehicle was traveling at speed.

Security In Today's Cars

Cars' vital functions, including steering, brakes and startup largely run on a system of interconnected electronic control units that form the car's central nervous system. These units run on millions of lines of computer code. It's estimated that the average premium new car runs on about 100 million lines of computer code, while Boeing's new 787 Dreamliner requires just 6.5 million code to function.

Representatives from the Big Three told us, not surprisingly, that they are working hard to make sure security and privacy are paramount. All the while, consumer demand is creating something of a supercomputer in every vehicle.

Ford, GM and Chrysler all have introduced wireless internet systems that allow consumers to surf the internet while in or around the vehicle and download music and road-trip directions to an in-car computer. Most in-car wireless systems work in much the same way as a home-internet wireless connection and require a password to gain entry to the network, said Chrysler's Nick Cappa. This basic step, he says, prevents almost all security breaches of the car's wireless system.

Cappa says that the system offered by Mopar as an option on certain Chrysler, Dodge and Jeep models is independent of, and not integrated with, a car's central electronics systems, including its hard drive and the media library.

"Think of its as a picnic table you can use in the vehicle but you can also detach and use outside the vehicle," he said.

Similarly, when a new user wishes to log-in to Ford's wireless internet system the driver must give their permission for a connection to be established, which prevents "piggybacking," according to company spokespeople. A music-encryption system also prevents anybody from removing or copying tunes from the car's on-board library by wireless connection or by plugging the hardware into another car. Its route finder information can be locked from prying eyes by a four-digit PIN code (similar to an ATM card's) when needed. Ford also says the SecuriLock engine-start system only works with a designated key that sends a unique signal code to a transponder in the engine amid some 72-million-billion code configurations (which would severely challenge the most dexterous of hackers).

While your ride seems to be safe at the moment, the threat looms ahead. All the while, it never hurts to park your car off-street and tuck away your valuables, either.

10 Smart Moves After A Car Accident

2010-05-24T19:16:00.002-05:00

Tires squeal and you brace yourself for the inevitable sound of metal crunching. The actual accident is over in a few seconds, but what should you do afterwards? Here are 10 smart moves to make after you've been in a car accident.

1. Think safety first.
It's a given to think safety in a more serious crash, but the after affects of fender-benders can be dangerous too. While in many states, the law requires you to stop after a collision, it's important to pull out of any driving lanes, even if the traffic behind you is stopped. This is to avoid a secondary collision, as well as to not impede traffic flow.

If you are the front car in a collision, motion to the other driver and have him follow you to the closest spot where there's room for both of you to pull over safely. If you are parked in the breakdown lane, be sure to stay as far away from moving cars as possible as you exchange information and assess damage.

If you can't move your car out of traffic, stay in the car with your seat belt buckled and call 911. No matter where you are stopped, turn your hazard lights on or put out flares or an emergency triangle if it's safe to do so.

2. Check for injuries.
Even in a relatively minor collision, people can be hurt. First, look at yourself, in a mirror if possible. While your adrenaline will be flowing hard, stop and think about if any part of your body hurts or if you are dizzy, short of breath or have other symptoms of an injury. Once you decide you are okay, ask the others involved if they are hurt. If anyone is injured or even seems like they might be, call 911. Unless you have first aid training, don't move anyone who is injured unless they are at risk of further injuries because of their location.

3. Consider calling the police.
In many states, if no one is hurt, the cars involved are not blocking traffic and damage is under $1000, reporting the accident to the police is not required (New York and Massachusetts are two such places), but you may choose to make the call if you want a police report taken. If you think getting a report of the accident would be helpful in establishing fault or because you suspect fraud, then certainly make the call to request police assistance.

Sometimes, especially in cities where officers are busy responding to calls of injuries and lawbreakers, the police may not respond to this request for a minor accident. Even if they don't respond, you may be required to file a report yourself, if anyone is hurt or if the damage exceeds a certain amount. Check with your local police, Department of Motor Vehicles or insurance company to find out. Keep in mind though, that in many states, if a police report is filed, your insurance company will be notified of the accident, which could derail you if you have plans to keep the accident quiet, though not reporting it is illegal in many states.

4. Look for eyewitnesses.
Noting any eyewitnesses to the collision is a smart move, especially if there's any question of fault in the collision. Go to the eyewitnesses as quickly as possible to get the full name, street address and day and evening phone numbers for each witness. Even if no police report is taken, you can provide this info to your insurance company.

5. Make a plan if your car is being towed.
If the damage to your car is severe enough that it needs to be towed, take a few minutes to make a plan your next steps. Where do you want the car to be towed? Having it delivered to a dealer, mechanic or body shop you trust is ideal, even if you need to pay a bit because it's being towed further away. If you car is taken to the towing company's yard or other nearby location and you'll want it to go somewhere else later, you could end up paying for a second tow.

If your car is being towed, make sure to get all of your personal belongings out of it first. If these items are stolen, they won't be covered under your auto insurance, plus they may be things you need later.

6. Make notes.
In addition to the contact info of any eyewitnesses, take a moment to jot down the time of day as well as the street or highway where the collision occurred and the nearest cross-street or exit -- your insurance company will ask you for these details. It's also a good idea to note the road conditions, the weather, the speed limit sign, traffic signals and accident results, such as skid marks, since your insurance company may ask that information as well.

7. Take pictures.
If you have a camera, even in a cell-phone, take pictures of the damage (or lack of it) of all the cars involved, as well as any pictures that can help the insurance company understand how the accident occurred and possibly determine fault or fraud. If possible, photograph each car by standing at an angle from each wheel, so one side and either the front or rear of the car is visible in the frame. Take close-up pictures of any vehicle damage (from this accident or not) and, if appropriate, of any people involved. You might also want to photograph the items you took notes on.

8. Double check the other party's information.
Everyone knows to exchange information, but do so by writing down the info yourself by copying it from the person's driver's license and insurance card versus having them write it down for you. As you copy the info, ask if this is the person's current address and also compare the vehicle description, including the VIN, from the insurance card to the car itself. Make note of any discrepancies.

9. Call your insurance company.
Even in a fender bender with minimal damage, you are going to want to call your insurance company (and, in some states, you may be required to do so). Repair costs for even a new bumper and taillight can easily exceed a low deductible, and even seemingly minor damage to a car's exterior can reveal underlying damage once a body shop looks at the car more carefully. Be very cautious if you opt to try to handle the repair costs between the parties involved, check your state laws on this and decide in advance how to handle it if your car repair costs go up if they find more extensive damage once they have your car apart or if a person decides they are injured later.

10. Consider visiting a doctor.
Even if you are not seriously hurt, it may be wise to see a doctor within the day or so after the crash. Soreness and stiffness can be signs of a more serious injury and if they are, it should be diagnosed and treated promptly. While it's not right to take advantage of the system, it is appropriate to ensure that any medical issues that are a result of the accident are taken care of by the at-fault party. You don't want to wait until months later to discover the lingering problem you have is a result of the car accident.

2010-05-19T22:17:00.000-05:00

Soiree Pelouse III: WONKA was a fundraiser that benefited Legacy Community Health Services, Houston GLBT Community and AssistHers.

Why should I buy life insurance?

2010-05-17T12:49:00.000-05:00

Many financial experts consider life insurance the cornerstone of a sound financial plan. Yet many of us remain uninsured or underinsured. If you're wondering whether or not you should buy life insurance, ask yourself one question: "Would my death leave anyone in financial difficulty?" If your answer is yes, you may want to think about life insurance and how it may fit into your financial plans:

You're a two-income family
Does your family depend on two incomes to support your current lifestyle? If you died suddenly, could your family maintain its standard of living on your spouse's income alone? If not, life insurance may help to ensure that your plans for the future live on after you're gone.

You're a single parent
According to the Life Foundation® nearly four in ten single parents have no life insurance whatsoever, and many with coverage feel they need more.* As a single parent, you're it: the caregiver, breadwinner, cook, chauffeur, and so much more to your family. With all that's riding on you, life insurance may help to safeguard your children's financial future if you weren't there.

You're a small business owner
What would happen to your business if one of your partners or a key employee died tomorrow? Life insurance can be used to provide the surviving business owner(s) with the funds to buy the deceased owner's interest. Or if a key employee dies, life insurance payable to the company can provide the owner(s) with the financial flexibility needed to hire a replacement or work out an alternative arrangement.

Why might you want to buy life insurance? Because you have a mortgage, a small business, someone who depends on you, long-term financial goals or plan to send your kids to college. Life insurance can help fill the financial gap left in the event you are no longer there. Call me today to discuss your life insurance needs.

Note: Careful consideration should be given to the ownership and beneficiary arrangements of any life insurance purchased for business or estate purposes. You should consult with an attorney and other professional advisors.

*http://www.lifehappens.org/life-insurance/who-needs-it

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040

How — and why — should I take a home inventory?

2010-05-14T09:07:00.000-05:00

Would you be able to list all the possessions you've accumulated over the years if they were destroyed by a fire or other disaster? If your answer is no, you may want to consider doing a home inventory. It may help you get your insurance claim processed faster and make it easier to verify losses for your income tax return.

1. Make a list. Go room by room, starting with newer possessions. If you're just moving into your home, you could do a home inventory while you're unpacking.

3. Use a personal computer. Many financial software programs include a home inventory program that allows you to do a room-by-room accounting of your belongings. Or print out and complete Farmers Home Inventory Checklist and keep it in a safe, accessible place in the event you need to file a claim.

3. Take a picture or use a video camera. Save time: Take pictures or videotape the items in your home and make copies of the tape or DVD.

4. Whatever process you use, you'll probably want to keep at least one copy in a safe place away from your home and you should update it whenever you make a significant purchase.

You may want to consider purchasing a Personal Articles Floater to provide additional coverage for your valuables, such as jewelry, furs or fine arts, when their value is higher than the limits stated in your homeowners policy.

Call me: I can provide information that may help you decide whether your coverage is sufficient.

Farmers fights cancer with City of Hope

2010-05-13T16:10:00.000-05:00

Farmers is proud to announce a new partnership with the City of Hope. In 2010 Farmers will be a national sponsor of the City of Hope Walk for Hope series to support the research and eradication of all women’s cancers.

Last year, Farmers was a local event sponsor for City of Hope’s Los Angeles Walk for Hope, and more than 100 Farmers employees walked and raised $12,000 for breast cancer research. This year, the Walk expands its reach to fight all women’s cancers, and Farmers will expand its sponsorship to seven additional cities: San Diego, San Francisco, Philadelphia, Phoenix, Chicago, Seattle and Washington D.C., opening the opportunity for agents and employees from around the country to become involved in a walk near them.

In its 16-year history, Walk for Hope has raised more than $29 million, and it’s the nation’s only series of walks that directly benefit research, treatment and education programs for cancers unique to women. Farmers has been a proud supporter of the City of Hope for many years, but this is the first year we’ve taken on the role of national Walk for Hope sponsor.

To learn more about Walk for Hope, visit www.walk4hope.org, and to learn more about City of Hope visit www.CityofHope.org.

Avoid common car accidents

2010-05-13T14:54:00.001-05:00

The sound of your vehicle colliding with another is not something you want to hear. A few preventive measures may help you reduce the chances of an accident. Here are two simple things you can do:

Look as far ahead as possible so you're more likely to see potentially dangerous situations in time to avoid them.
Keep a "space cushion" around your vehicle at all times.
The "3-second rule" may help you maintain safe space: When the vehicle ahead of you passes a certain point, such as a sign, count "one-thousand-one, one-thousand-two, one-thousand-three." This takes about 3 seconds. If you pass that certain point before you finish counting, you're following too closely. In bad weather you may want to allow a 4-second (or more) cushion.

Read on for some additional safety tips:

Avoid sudden swerving. Try to look far enough ahead to be aware of potential hazards. But if you need to swerve to avoid an object, such as an animal or vehicle in your path, turn the wheel smoothly and sparingly — turning only the amount you need to get around the object in the road. Then, without hard braking, slow down as quickly as possible. If you jerk suddenly, or turn too far, you could send the vehicle out of control, into a rollover or end up in another lane or run off the road.
You get a blow-out. If you've ever experienced the sudden loss of tire pressure you know it can be a very scary experience. Typically you're left with a vehicle that is difficult to control. Your instinct may be to slam on the brakes: Don't. A rapid slow down may make it even harder to maintain control. Instead try to ease off the accelerator gradually while continuing to drive as straight as you can. Once you have slowed the vehicle, ease over to the roadside and come to a full stop.
You're sliding on wet pavement. If your vehicle starts sliding on a wet road, turn your wheel in the direction of the skid. Look where you want to go rather than at the front of your vehicle. Your hands tend to follow your eyes and this may help you get your vehicle going straight again.
Your car suddenly accelerates.
Step on the brake pedal with both feet using firm, steady pressure. Do not pump the brakes.
Shift into neutral. Use the brakes to make a controlled stop by the side of the road.
If you're unable to put the vehicle in neutral, turn off the engine. This will cut off power assist to the steering wheel and brakes, but as long as the key is in the ignition, you should still be able to steer and brake. If you have an engine start/stop button, press it firmly for three seconds to turn the engine off. Do not tap it. If you have a conventional key ignition, turn the key to the ACC position. Do not remove the key from the ignition.

Bottom line: Stay focused, look as far ahead as possible and leave a good distance between you and other cars.

Sometimes, though, accidents happen, no matter how careful you are. Give me a call today. We can review your policy so you can be sure you have the coverage you want — just in case.

Car Insurance Tune-Up

2010-05-11T16:31:00.002-05:00

5 Tips To Keep You Driving Safe
Posted: May 11, 2010
| By: Tom Torbjornsen, AOL Autos

We keep our cars tuned up, but what about our automobile insurance? An insurance policy is a personalized service contract that provides coverage for you and your family in the event of an accident. When you read your auto policy the language is anything but simple. And everyone knows it's not inexpensive! To regard auto insurance as a "necessary evil" to be purchased as cheap as possible is a foolish and ignorant approach to this very necessary aspect of driving an automobile. Based on our conversation, here's how to get the biggest "bang for your buck" when purchasing automobile insurance:

BUY AS HIGH A LIABILITY LIMIT AS YOU CAN AFFORD - This is the coverage that protects you in the event you get into an accident and are accused of negligence. Remember, a lawsuit can be brought against you despite your culpability - and damages sought in today's court actions seldom fall below six figures. Often the spouse of the injured party seeks more than $100,000 for "loss of services." This doesn't include the dollars requested for the injured party. Question... how far would your present policy go in responding to this kind of a suit? Be realistic, not ridiculous in determining the amount of liability you need. Most insurance companies will write liability coverage up to at least $500,000. Adding an umbrella liability policy in the amount of one, two, three million (or more depending on your situation) will go a long way in protecting you. Only buying $50,000 coverage? See how long that lasts you when you get the hospital bill from the party you hit for three or four weeks... oh, and I forgot about the "loss of services."

BUY SUPPLEMENTAL UNINSURED MOTORIST COVERAGE - This is the coverage that protects you in the event you are involved in an accident with an uninsured motorist, or a motorist with low limits of liability insurance coverage. Let's say that you're involved in an accident resulting in serious injury to you, and possibly your passengers. No matter what the amount a court might award, if the negligent party has inadequate liability coverage and few assets, your award is of little value. The Supplemental Uninsured Motorist portion of your policy provides the liability coverage the other driver should have had up to the limit you carry on your policy.

CARRY HIGH DEDUCTIBLES ON YOUR PHYSICAL DAMAGE - Higher liability as well as Supplemental Uninsured Motorist coverage means higher premiums. A good way to help pay for this is to carry as high a deductible on your collision and comprehensive as you can reasonably afford. This brings the price of the premiums down.

CONSIDER DROPPING PHYSICAL DAMAGE ON OLDER VEHICLES - This is not an easy call. Typically, an insurance company charges less for collision and comprehensive on an older vehicle. In general, when a vehicle is six years old or more, it's worth considering this change. Things to take into consideration when trying to make this call are value of the vehicle, its condition, how much you drive it, and the policy charge for the coverage. At some point the charge for the coverage will not be worth what you could collect in the event of a loss. Never skimp on liability coverage in order to pay for less important physical damage coverage on a vehicle that is worth less than what the policy would pay in the event of a loss.

DEAL WITH AN AGENT THAT HAS YOUR CONFIDENCE - Make sure your agent gives you the service you need. Ask questions about coverage under different scenarios and ask for recommendations. Deal with a full-service agency; one that offers all the products you need and has the staff to make the complex insurance marketplace bearable.

People spend money on maintaining their cars and ignore their insurance coverage. When you get in an accident and have the other party's lawyers breathing down your neck is not the time to find out that your insurance coverage was inadequate. Get with your agent and tune up your insurance policy now.

Do “Empty Nesters” need life insurance?

2010-04-21T09:30:00.002-05:00

Quite possibly. In fact, there are many reasons why you may want to consider life insurance after your children have left home:

To help meet goals
If your children are in college and/or not completely financially independent, life insurance may help "finish the job." Although you may have provided for tuition, what about your kids' ongoing living expenses (e.g., room and board, laundry, entertainment/activity costs, etc.)? And, while Social Security benefit payments for your surviving spouse and children may be available, they stop when your kids leave high school.*

To support other dependents
If you have parents, disabled adult children or others who depend on you for financial support, life insurance could help continue this support if you die before they do.

To offset "lost" retirement savings
If you die unexpectedly before retirement, your Social Security survivors' benefits and pension, if you have one, are based on your salary at that time. And your retirement savings contributions stop, of course. If you're early or even midway in your career, that might create a big gap between needs and resources. A life insurance policy may help fill that gap.

To meet commitments based on two incomes
Most two-earner couples make financial commitments (e.g., home mortgage, loans, leases, etc.) based on their combined income. Life insurance covering each earner may help the survivor continue to meet those commitments.

To pay final expenses
Perhaps you don't have enough savings available to pay for funeral and burial costs, final medical expenses, estate administration and transfer costs, and federal and state income and estate taxes.† Life insurance may help cover these costs, which can easily reach tens of thousands of dollars.

To create a financial "safety net"
Conventional wisdom says each household should have an "emergency fund" to meet surprise unavoidable outlays. If you don't have an emergency fund and something happens to you, it might be more difficult for your family to obtain immediate cash. Life insurance may help solve this problem.

To offset lost income if a spouse dies after beginning Social Security retirement benefits
When a couple retires and begins receiving Social Security retirement benefits, each one receives an income. The earner with the larger pre-retirement income gets a benefit based on that income, and the person with the smaller (or no) pre-retirement income gets either a benefit based on his or her own earnings record or half of the spouse's Social Security benefit, whichever is greater. When one spouse dies, the larger retirement benefit continues but the second benefit stops. Life insurance may help offset this income drop.

To provide for your charities
Life insurance can be an effective way to make a final gift to your favorite charity.

Call me to learn more about how life insurance can benefit you and your loved ones or beneficiaries.

*Surviving spouse may receive benefits at any age if caring for a child younger than age 16 or disabled; unmarried child may receive benefits if under age 18 (19 if attending secondary school full time) or disabled. Source: http://www.ssa.gov/pubs/10084.html.

†This document is for informational purposes only. You should consult your attorney, accountant or tax adviser for legal or tax advice.

Life insurance issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040.

0410-A

There's no place like home — How safe is yours?

2010-04-15T11:29:00.002-05:00

Your home may be your castle — but it also can be a very hazardous place. We become so accustomed to our homes that we often overlook potentially dangerous habits and situations. Here are a few simple steps that may help prevent many common household accidents:

Keep stairs clearly lit. Stairs are one of the most dangerous spots in your home. Click here for Stair Safety Tips.
Help prevent falls. Install grab bars in tubs and showers and use non-slip mats. Have bright lights over stairs and on landings. Keep them well lit and clear of boxes, furniture and other tripping hazards.
Help prevent poisoning. Keep cleaners, medications and beauty products where children can't reach them. Use child safety locks. Call (800) 222-1222 for information about poisons. If anyone ingests or inhales poison, call 911 immediately.
Help prevent fires, burns and inhalation hazards. Check all smoke, fire and carbon monoxide alarms regularly and hold family fire drills. If you build a new home or renovate an existing home, consider installing fire sprinklers. When cooking, stay at your stove. To help prevent scalding, set your hot water heater at 120°F.
Help prevent choking and suffocation. Any item that can fit through a toilet paper tube can choke a young child. Keep coins, latex balloons and hard round foods, such as peanuts and hard candy, where children cannot see or touch them. Pediatricians recommend placing babies to sleep on their backs without pillows, blankets, comforters or toys in cribs.* When your children are in or near water, watch them very carefully and stay close enough to touch them at all times. This includes bathtubs, toilets, pools, spas and even buckets of water.

The best way to handle an emergency is to be prepared. Make sure you have an emergency phone list posted by each phone in your house. I can give you a sample list so call me and start making your home safer today.

Stair safety
Here are tips that may help you and your family navigate your steps safely:

Install a light switch at the top and bottom of stairs.
Make sure handrails run the full length of the staircase.
Fix loose stair carpeting immediately.
Don't use throw rugs at the top or bottom of a flight of stairs.
If you intend to paint basement stairs, add some sand to the paint for a better grip or install rubber or abrasive treads.
Make sure the outside of your house is well lit or paint the edges of outside steps white so they can be seen in the dark.

*Source: U.S. Surgeon General's Office: http://www.surgeongeneral.gov/pressreleases/sg05052005.html.

Carjacking can happen anywhere

2010-04-14T13:33:00.001-05:00

Can you imagine someone stealing your motor vehicle while you're in it? That's a very scary thought, yet it happens to thousands of motorists every year.* You can help reduce the risk of being carjacked if you stay alert, avoid dangerous situations and places, drive defensively and keep your car locked. Read on for some valuable information that may help keep you and your family out of harm's way.

Stay alert. Whenever you enter or exit your car or stop your car and remain in it, vigilance is the key to safety. So remain alert at stop signs, red lights, in front of electronic gates or in your driveway.
Driveway precautions. Don't let your guard down, assuming you're safe just because you've reached your own driveway. In fact, don't even pull into your driveway if you think you're being followed by a car you don't recognize. Instead, drive around the block, and if you are being followed, head to the nearest police or fire station. If you have a cell phone, use it to call 911 for help.
Red light and stop sign precautions. Whenever you are at a stop sign, intersection or red light, keep your windows closed and leave enough room between you and the vehicle in front of you to allow you to escape, if necessary. Rule of thumb: Make sure you can see the entire back of the vehicle in front of you including its tires. This will allow you to maneuver your car easily if you need to pull away quickly.
Behaviors to avoid. Don't let people know you have money. Remain alert when you walk to your car from a shopping center with a bunch of bags. Try not to wear any flashy jewelry when running errands. Carjackers wait for these opportunities and then take advantage of them.

The bottom line: Constant vigilance can help to reduce the risk of carjacking.

*Source: http://survivalx.com/driving/carjacking.html

Donation to Lu Lu Stevens Elementary School

2010-04-09T11:10:00.003-05:00

David Lorms, Farmers Insurance Agent, donated $500 to Lu Lu Stevens Elementary School to fund a Perfect Attendance Award program for the 2010 Spring Semester. Students with perfect attendance will have their names entered into a drawing for prizes. Pictured with Lorms is Lucy Anderson, Principal.

Forecasters Predict Active 2010 Hurricane Season

2010-03-15T15:02:00.001-05:00

Meteorologists are predicting an active 2010 hurricane season with above-normal threats on the U.S. coastline.

Hurricane Forecaster Joe Bastardi, with the AccuWeather.com Hurricane Center, said Wednesday that he predicts seven landfalls. Five will be hurricanes and two or three of the hurricanes will be major landfalls for the U.S.

Bastardi forecasts 16 to 18 tropical storms in total, 15 of which will likely be in the western Atlantic or Gulf of Mexico.

In a typical season, there are about 11 named storms, with only two or three impacting the coast of the United States.

The rapidly weakening El Nino, warmer ocean temperatures, weakening trade winds and higher humidity levels will all contribute to greater storm activity.

Funds raised for 2010 AIDS Walk

2010-03-15T14:43:00.001-05:00

David Lorms, Farmers Insurance Agent, raised more than $250 for the March 14, 2010 AIDS Walk in Houston, TX.

2010-03-12T12:18:00.001-06:00

David Lorms, Farmers Insurance Agent, donated $600 to the 2010 Senior Class of Waltrip High School for a Senior Breakfast, as part of a alcohol free graduation celebration. Pictured from l-r are: Lori Frodine (Dean of Instruction), Rebecca Medrano, Ariel Villarreal, Lorms, Eliza Porterfield, and Erica Palomo.

2010-03-07T21:22:00.001-06:00

Follow the following tips to reduce your chances of being the victim of auto theft.

1. Always Take Your Keys. Never leave them in the car. Nearly 20% of all vehicles stolen had the keys in them.

2. Always Lock Your Car. Approximately 50% of all vehicles stolen were left unlocked.

3. Never Hide A Second Set of Key In Your Car. Extra keys can easily be found if a car thief takes time to look.

4. Park in Well-lighted Areas. Over half of all vehicle thefts occur at night.

5. Park in Attended Lots. Auto thieves do not like witnesses and prefer unattended parking lots.

6. If you Park in an attended lot, leave only the ignition/door key. If your trunk and glovebox use the same key as the door, have one of them changed. don't give the attendant easy access to your glovebox and trunk. Upon returning, check the tires, spare and battery to insure they are the same as those you had when you parked.

7. Never leave your car running,even if you will only be gone for a minute. Vehicles are commonly stolen at convenience stores, gas stations, ATM's, etc. Many vehicles are also stolen on cold mornings when the owner leaves the vehicle running to warm up. Leaving your key in an unattended motor vehicle is a crime in some states.

8. Completely close your car windows when parking. Don't make it any easier for the thief to enter your vehicle.

9. Don't Leave Valuables in Plain View. Don't make your car a more desirable target and attract thieves by leaving valuables in plain sight.

10. Park with With Your Wheels Turned towards the curb. Make your car tough to tow away. Wheels should also be turned to the side in driveways and parking lots.

11. If Your Vehicle is Rear-Wheel Drive, Back Into Your Driveway. Front-wheel drive vehicles should be parked front end first. On four-wheel drive vehicles the rear wheels sometimes lock, making them difficult to tow.

12. Always Use Your Emergency Brake When Parking. In addition to ensuring safety, using the emergency brake makes your car harder to tow.

13. If You Have a Garage, Use It. If you have a garage, take the time to use it rather than parking outside where your vehicle is more vulnerable.

14. When Parking in a Garage, Lock the Garage Door and Your Vehicle. By locking both the garage and vehicle doors, the chances of deterring a thief greatly improve.

15. Don't Leave the Registration or Title in Your Car. A car thief will use these to sell your stolen car. File the title at your home or office, and carry registration in your purse or wallet.

16. Disable Your Vehicle When Leaving it Unattended for an Extended Period. Remove the electronic ignition fuse, coil wire, rotor distributor, or otherwise disable your vehicle anytime thieves may have extended access to it.

17. Replace "T" shaped Door Locks With Straight Locks. Some vehicle doors have lock assemblies at window level that flare out in a knob or "T' shape. A thief can use various tools to gain access inside the vehicle, grab and pull the lock. Straight locks prevent this.

18. Vehicle Identification Number (VIN). Stolen cars/parts are more easily traced when vehicle VIN numbers have been etched on car windows and major parts. IDstickers include VINs and can assist police in identifying your vehicle in the event that it is stolen.

19. Engrave Expensive Accessories. Engrave personal I.D. numbers on car stereos, cellular phones, etc., so the thief will have difficulty disposing of them. Do the same for car by using an IDsticker and VIN etching.

20. Drop Business Cards, Address Labels, or Other I.D. Inside Vehicle Doors. Car thieves usually alter vehicle identification numbers. By marking your vehicle a much as possible, you assist police in identifying your car.

21. Ignition Kill Switch. Splice an inexpensive toggle switch into your ignition wire or to your starter. The trick is hiding the switch well. Keypads, pressure pads and more expensive "Immobilizes" and "Passkeys" can also be used.

22. Fuel Kill Switch. The valve that halts the fuel supply is closed.

23. Visible Steering Wheel Lock. Prevents the steering wheel from being turned.

24. Floorboard Locks. Devices that disable the gas or brake pedal.

25. Gearshift Locks. Disables shifting of the transmission.

26. Tire/Wheel Locks. Prevents the vehicle from moving.

27. Hood Locks. Prevents the thief from gaining access to your security system and battery.

28. Armored Collar Around the Steering Column. Protects the column and ignition.

29. Alarms. Loud warnings sound when doors/hood/trunk are opened. Optional sensors include glass breakage, motion, tampering and towing. Panic buttons, back-up batteries, flashing parking lights or headlights, and automatic engine disable features are also recommended.

30. Vehicle Tracking. Transmitter hidden in car enables police to track car. IDsticker enables police and citizens to identify stolen car.

31. Be suspicious of any deal that sound too good to be true.

32. When buying from a private individual, make sure the title and registration match the name and address of the person selling the car.

33. Be cautious of a seller with no fixed address of employment or phone number.

34. Ask the seller for references about past financing and insurance on the vehicle. Verify the information with the bank, finance company, or agent.

35. Ensure the vehicle identification number (VIN) plate on the automobile dash is present, secure, and has no loose rivets. Check to see if there is an IDsticker in the glove box that matches VIN on dashboard.

36. Ensure that the VIN plate has not been repainted and the numbers stamped in the plate appear to be original factory numbers.

37. Ensure the VIN plate rivets are original. All 1970 and newer automobiles produced in North America have stainless steel "rosette" rivets with six petals and a hole inside the middle. They are difficult to scratch with a knife.

38. Thieves may remove the VIN plate and replace it with one from a similar wrecked vehicle. If in doubt about plate authenticity,check with a new car dealer who handles the same model or contact a law enforcement agency.

39. The VIN on the dash must match the vin on the registration, title and federal safety inspection sticker on the drivers door.

40. If the VIN plate is scratched, bent or missing rivets, tampering may have occurred.

41. Make sure the federal safety inspection sticker, located on the driver's door or door jamb, is securely in place and none of the numbers appear to be tampered with.

42. Use special license plate locking screws to make it hard for thieves to remove your license plate during a robbery.

43. An excessively loose ignition switch may indicate tampering. Check the switch for chisel or pull marks.

44. Be wary of a fresh paint job on a newer vehicle. This may indicate an attempt to change the car's identity.

45. Check the inspection and license plate stickers to be sure they are current and issued by the same state.

46. If the seller provides you with only re-made keys, not original manufacturer's keys, for a newer model car, be suspicious.

47. Titles and registrations are frequently counterfeited. Therefore, demand the title before paying, and make sure it matches the registration. By completing all paperwork at the time of sale, you avoid giving the thief extra time to obtain fraudulent documents.

48. Question the seller if the registration was recently issued on an older vehicle.

49. Compare the engine identification numbers with all other numbers to ensure a match.

50. Be cautious of new license plates on an old car, or new plate bolts on an older plate

National Flood Insurance Program Temporarily Restored

2010-03-03T12:55:00.001-06:00

The U.S. Senate last night passed legislation that includes an extension of the federal flood insurance program until March 28. President Obama has signed the measure.

The extension means that the National Flood Insurance Program (NFIP), which has been unable to issue policies since its authorization expired at midnight on Feb. 28, should be able to again start issuing new and renewal policies. NFIP issued a memo on Feb. 26 that included guidelines for operations during a hiatus. However, the agency has not yet released any follow-up guidance for insurers or agents following this reauthorization.

The several days' hiatus did not affect NFIP claims paying. The program insures more than 5 million properties.

The emergency legislation reauthorizing funding for the flood program was part of a larger $10 billion bill dealing with unemployment insurance, subsidies for COBRA benefits, transportation projects and several other federal programs.

The legislation had been held up by Sen. Jim Bunning, R-Ky., who objected that it did not address funding. Supporters noted that as emergency legislation, it was exempt from the "pay-as-you-go" law. Bunning eventually agreed to lift his hold after he offered an amendment on funding, which was defeated. The unemployment benefits legislation with the flood insurance reauthorization then passed with a bipartisan vote of 79-19.

The NFIP sunset caused delays for some consumers waiting to close on the sale of a property within a flood hazard area.

While no new policies could be issued during the lapse in authorization, consumers with current policies remained covered by the federal program, according to the National Association of Insurance Commissioners.

This short-term extension is itself an extension of a previous emergency authorization of NFIP. In December, the Senate extended it to Feb. 28.

Last Thursday, the House passed the bill addressing the expiring federal programs, but Bunning's opposition kept the Senate from advancing the legislation before the NFIP's Feb. 28 deadline.

Congress has been working on longer-term legislation to authorize NFIP for up to five years, which would be welcomed by the insurance industry.

"We applaud the Senate for recognizing the urgency in extending the National Flood Insurance Program," said David Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI). "This vitally important program protects over five million families across the country. The recent debate in Congress underscores the need to bring greater certainty and stability to the flood program in 2010 and advance a long-term extension that ensures the program's fiscal soundness."

Flood Insurance Program Closed; No Policies Until Senate Votes

2010-03-01T15:28:00.001-06:00

Insurance agents with customers waiting to be covered in the federal flood insurance program should tell those customers about the program’s suspension, an insurance expert is advising.

As reported by Insurance Journal, the program could be in limbo for about a week while the Senate finds a way to vote on its extension over the objections of Sen. Jim Bunning, R-Ky. The National Flood Insurance Program (NFIP) will not be able to issue new policies, increase coverage, approve renewal policies or pay claims until Congress approves reauthorization.

Generally agents should not be facing an errors and omissions (E&O) exposure since the NFIP is the principal source for flood coverage and its closure, expected to be temporary, is beyond agents’ control, according to Christopher J. Boggs, director of the Insurance Journal Academy of Insurance.

“If you can’t get coverage from what is essentially the main source that provides it, I really don’t see an issue. Now, that could change if the agent doesn’t tell the insured about the problem and something happens,” says Boggs.

If, however, it looks like there is going to be a long delay in the return of the program, Boggs says agents might want to discuss alternative programs such as Lloyd’s of London with their insureds.

The premium will likely be much higher for any alternative program than it is through NFIP, but it’s not a bad idea for an agency to have in its file that coverage was offered but denied, according to Boggs.

Another concern is excess flood policies and Difference in Conditions (DIC) coverages. Both of these forms generally have a deductible equal to the amount available through the NFIP when the structure is located in a Special Flood Hazard Area (SFHA). This could leave an insured with a major out-of-pocket expense, according to Boggs.

“So here, too, the agent should at least offer and get the denial in the file,” he advises.

HPD Tips to Prevent Home Burglary

2010-02-25T17:31:00.001-06:00

Council Member Brenda Stardig encourages everyone to be vigilant about their safety. HPD released the statement below regarding home burglary prevention.

When traveling, keep your home looking lived-in by having grass cut, mail and newspapers picked up and lights turned on and off.

Keep a current inventory of all your valuables. Include photos or video, descriptions, and serial numbers of all electronic equipment. Engrave valuables with your Texas driver license number (preceded by the letters “TX”). In the event your home is burglarized, this will help police identify the property if it is recovered. Engraving property can also help with insurance claims. Secure cash and jewelry in bonded storage.

Getting Involved

Know who belongs in your neighborhood and report suspicious persons immediately. Be alert in protecting not only your home but your neighbors as well. Don’t tell a stranger that your neighbor is not at home or volunteer any personal information about your neighbor. Never leave notes on your door that reveal that your home is not occupied. Join a neighborhood watch group. If there is not one in your neighborhood start one. Help keep your neighborhood clean.

Alarm Systems

Choose a reputable, well established company. Learn how to use your alarm system properly to reduce false alarms. Fines can be assessed for excessive false alarms. Do not write your alarm code/password on or near the alarm keypad. Put a warning sign on windows and entrances.

Make sure your alarm call back list is always up to date.

Additional Information

« Acknowledge all callers through locked doors.

« Keep doors, windows and garage doors closed and locked even when at home.

« Before moving into a new house or apartment, re-key or change the locks on all
exterior doors, also change the code to your garage door opener.

« Draw all curtains or shades at night to prevent viewing from the street.

« Never leave a house key in an obvious place such as a mailbox, under plants or
a doormat.

Doors and Windows

All exterior doors should be solid core or of metal construction. All entry doors should be equipped with a good quality deadbolt lock having a minimum of a one inch throw. A good quality double cylinder deadbolt lock should be used if there is glass within 40 inches of the lock. If using a double cylinder deadbolt lock, make sure a key is readily accessible in case of an emergency. Use a heavy duty strike plate secured with number 12 gauge three-inch wood screws.

All exit doors with outside hinges should have their hinges pinned. Install a peephole with at least a 180-degree viewing area. Secure all sliding glass doors with an anti-lifting device and a secondary locking device. Windows have latches and not locks, therefore, install secondary locking devices on all windows.

Exterior and Landscape

Install lights in areas around doors, walkways, and driveways. Locate outside lights high and out of reach. Use inexpensive timers or photo electric cells to automatically turn the lights on and off at dusk and dawn. Trim shrubbery and trees so doors and windows are visible from the street. If there is a second floor, prune the trees so that a thief cannot use them to reach a second floor window.

To discourage an intruder, plant thorny hostile plants along fences and near windows. A good fence should not block visibility. Do not leave ladders or tools outside; they can assist a person in gaining entry. Gates on fenced yards should be locked with good quality padlocks. Install large reflective numbers (minimum 3 inches) on your house and mailbox so police and other emergency personnel can find your home quickly.

Visit the HPD website www.houstontx.gov/police/crime_prevention for more crime prevention tips.

Texas Auto Theft Prevention Program Expands

2010-02-22T14:59:00.001-06:00

The Insurance Council of Texas (ICT) has joined with the Heart of Texas Auto Burglary and Theft Prevention Authority to expand a crime prevention campaign aimed at preventing auto thefts and auto burglaries in central Texas. The program involves the funding and distribution of signs that read, “LOCK your car, TAKE your keys and HIDE your belongings.”

The Heart of Texas (HOT) task force located in Waco will receive LOCK, TAKE and HIDE signs that will be distributed and placed throughout central Texas.

The program is just one of several crime prevention efforts that the Task Force utilizes to prevent auto thefts and burglaries in the area. Other efforts include surveillance operations, intelligence gathering and public advertising.

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In Texas, an estimated 100,000 vehicles are stolen and another 250,000 are burglarized each year. It is also estimated that half of the vehicles stolen had the drivers’ keys left in the ignition and/or unlocked doors.

The LOCK, TAKE and HIDE signs will be placed in large public and private parking areas such as shopping malls, city parks, restaurants, apartment complexes and other areas where there is parking congestion.

ICT initially started the crime prevention program in Austin on March 2, 2005, and has since begun similar programs in Round Rock, Garland, Mesquite, Frisco, Celina, Del Rio, Houston, Laredo, Brownsville, Highland Village, Galveston, Beaumont and College Station.

Source: The Insurance Council of Texas, www.insurancecouncil.org

Consumers understand the value of LIFE

2010-02-20T18:19:00.001-06:00

The recent economic turmoil has affected most of us and many of us in profound ways. Recent surveys reveal an interesting result of the challenging economic times: Americans are showing more interest in life insurance.* According to a survey released by the Life and Health Insurance Foundation for Education (LIFE), 56 percent of Americans say the economic downturn has made it more important to have life insurance, compared to just 9 percent who believe the need has diminished.*

It may seem counterintuitive but if you’ve experienced a recent job loss or salary reduction and are seeking ways to reduce your living expenses, you may have a greater need for life insurance. Remember: One important purpose of life insurance is to provide security for your family by replacing your income if something happens to you. So in difficult economic times, when jobs are harder to find and dependents may need even greater financial assistance, life insurance becomes more critical.

Tough times call for action
Today, most of us understand that life insurance is an essential part of securing our family’s financial security and well-being. Tough economic times call for consumers to take action and reexamine the amount and type of life insurance coverage they have. As your professional insurance agent I can offer information that may help you determine the amount of life insurance coverage that fits your individual needs.

*http://www.insurancenetworking.com/news/-23289-1.html

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