Posted by Benji Riggins on March 29, 2010 under Flood | 
As insurance and real estate agents and homeowners feared, Congress left Washington without extending the federal flood insurance program.
Congress adjourned until April 12 after failing to agree on an unemployment benefits bill that included a provision with an extension of the National Flood Insurance Program.
As a result, the federal flood insurance program’s authority to write new policies ends on Sunday, March 28 at midnight. After that time, insurance agents will not be able to provide new or renewal flood insurance policies, which are required by lenders to close on some real estate sales.
Senator Tom Coburn, R- Okla., blocked the Senate from voting on the bill to extend the jobless benefits arguing that to do so would add to the deficit. Democrats argued that the measure qualified as emergency spending.
A similar impasse occurred at the end of February and the NFIP was closed for several days until Congress renewed it on March 2.
But this time the hiatus will be longer.
Congress could reinstate the NFIP and other affected programs retroactively when it returns on April 12.
The NFIP expiration last month caused headaches for insurance agents and their customers as well as delays for some consumers waiting to close on the sale of a property within a flood hazard area.
While no new policies can be issued during a lapse in NFIP authorization, consumers with current flood insurance policies remain covered. Claims payments are not affected.
The NFIP has issued guidance for operating during an interruption.
FEMA is expected to issue updated guidance soon.
Posted by Benji Riggins on March 26, 2010 under Saving money |
The Porsche Carrera 911 GT2 two-door coupe is the most expensive 2010 vehicle to insure, according to a new ranking of average premiums for 2010 models that Insure.com released this week.
The rankings, which the insurance information and shopping site publishes annually, are based on the premium that a 40-year-old man with a good driving record, a good credit record and a 12-mile commute would pay annually.
The insurance data firm Quadrant Information Services calculated the average premiums for Insure.com by averaging car insurance rates from six large carriers across 10 ZIP codes in each state. According to the results, the national average annual premium for the Porsche 911 Carrera GT2 is $2,943.78, and other high-end sports cars like the Dodge Viper tended to dominate the list of the most expensive premiums (see the chart below for more). Amy Danise, senior managing editor at Insure.com, said the results didn’t surprise her since insurance policies are based on claims history. The Porsche Carrera GT2 “would have a really high claims history, meaning the drivers of that model have submitted a lot of very expensive claims. They crash a lot, and the cars could be very expensive to repair,” she said.
(In 2007, I wrote an article for The Wall Street Journal called “Honey, I Wrecked the Porsche,” about the spate of owners crashing expensive sports cars, including Porsche Carrera models. One reason for the crashes: inexperienced or reckless drivers getting behind the wheel of increasingly powerful and light cars.)
Meanwhile, at the other end of the spectrum, minivans dominated the list of those least expensive to insure (see the chart below for more). Ms. Danise said minivans and smaller sport utility vehicles tended to be the least expensive to insure.
One surprise on the least expensive list? The Jeep Wrangler, which Ms. Danise said must not have a lot of claims attached to it. “It’s hard to speculate” why it’s on the least expensive list, she said. “But it could be cheaper to repair or have fewer injury claims.”
The particular car insurance policy that the survey examined contained uninsured motorist coverage, coverage of $300,000 for all injuries, coverage of $50,000 for property damage in an accident and a $500 deductible on collision and comprehensive coverage.
The study covered about 2,400 2010 models. Those left out were ones for which there wasn’t enough data, including exotic cars like Bentleys and Lamborghinis, which Insure.com said probably carried hefty insurance bills.
While actual premiums will vary based on individuals’ characteristics, including age, driving record and the chosen policy, Ms. Danise said vehicles’ placement in the rankings should stay relatively consistent from driver to driver.
Among categories of vehicles, according to Insure.com, the Dodge Caliber is the least expensive passenger car to insure, the GMC Canyon WT (2WD 2 Door 2.9L) is the least expensive pickup to insure and the Honda Odyssey LX (5 Door 2WD SOHC) is the least expensive minivan to insure. Click here for the full list and a new tool from Insure.com that lets you search the rankings by vehicle and location.
When have you been surprised (positively or negatively) by the price an insurance company quoted for coverage for your vehicle?
The Five Least Expensive 2010 Vehicles to Insure
Rank Make and Model Style & Type Cylinders Average National Premium
1 Mazda Tribute I 2WD, 4-door utility 4 $1,070.25
2 Honda Odyssey LX 5-door 2WD SOHC van 6 $1,095.26
3 Mazda Tribute I 4WD 4-door utility 4 $1,103.29
4 Chrysler Town & Country LX 2WD 4-door 3.3L wagon 6 $1,119.83
5 Jeep Wrangler X 4WD 2-door 3.8L Utility 6 $1,124.38
The Five Most Expensive 2010 Vehicles to Insure
Rank Make and Model Style & Type Cylinders Average National Premium
1 Porsche 911 Carrera GT2 2-door coupe 6 $2,943.78
2 Mercedes S65 AMG 4-door sedan 12 $2,863.03
3 Dodge Viper SRT-10 2-door coupe 10 $2,851.89
4 Porsche Panamera Turbo AWD 4-door sedan 8 $2,837.39
5 Dodge Viper SRT-10 2-door convertible 10 $2,815.90
Source: Insure.com, from a study commissioned by Insure.com from Quadrant Information Services
By JENNIFER SARANOW SCHULTZ
Tags: auto insurance, auto insurance agency, auto insurance agent, auto insurance nc, auto insurance North Carolina, car insurance, car insurance agency, car insurance agent, car insurance nc, car insurance north carolina, insurance, insurance agency, insurance agent
Posted by Benji Riggins on March 22, 2010 under Insurance News |
The recent economic downturn has led to a decrease in the number of vehicles rated total losses after a crash, according to the latest Industry Trends Report.
Produced by Mitchell International, a provider of collision data processing systems used by insurers and body shops, the report also found an overall reduction in crash damage appraisal values, collision losses and third-party property damage.
In addition, the use of after-market and remanufactured parts rose, as did costs for repair materials and labor.
According to Greg Horn, Mitchell vice president of industry relations, due to slow vehicle sales, the average age of passenger cars has risen to 10 years.
He also noted a dramatic rise in the number of uninsured motorists, up as much as 25 percent in certain states.
Posted by Benji Riggins on March 5, 2010 under Flood |
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 said that as emergency legislation, it was exempt from the “pay-as-you-go” law. Bunning eventually agreed to lift his hold after being permitted to offer 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.”
Posted by Benji Riggins on March 1, 2010 under Flood |
The Senate last week failed to vote on bills to extend several federal programs including jobless benefits, COBRA subsidies, transportation project funding and flood insurance before these programs expired Feb. 28.
A single senator, Jim Bunning, R-Ky., has derailed final approval of the programs’ extensions over concerns about how to pay for them, especially the extension of unemployment benefits.
The result is that the programs could be in limbo for about a week while the Senate finds a way to get the job done. 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.
Bunning maintains that Congress has not paid for these extensions through any new funding or cuts as is required. Bunning, who is not running for re-election, said he supports extension of the benefits and programs including flood insurance but feels funding should be clear.
“The only difference I have, and some of my good friends from the other side of the aisle, is that I believe we should pay for it. There is a right over the last three years of the Democratically controlled Congress. We have run up $5 trillion in debt. There has to be a time to stop that,” Bunning said on the Senate floor.
Senate Majority Leader Harry Reid vowed that the measures would pass sometime this week but criticized the Republican’s tactics in delaying the approval of the programs.
“We talk a lot about Senate procedure in our debates, and that’s often appropriate. But it’s also often complex,” Reid said. “The catch here is that these benefits do not need to expire. We have the ability right now to extend them for just a short time until we work out a longer-term solution. It is irresponsible not to. It is immoral.”
If approved, the current bill would only extend the NFIP for a month, until March 28. There have been several short-term extensions within the past year.
The House has already approved the bills.
Guidelines for Carriers, Agents
The Federal Emergency Management Association (FEMA), which manages the flood program, issued a bulletin on Feb. 27 with guidelines for insurers and agents participating in the program in the event of a lapse. The agency did say that “any hiatus period should be brief, and most of the nearly 5.6 million flood insurance policyholders nationwide will not be affected.”
New policies for which insurers received payment on or before midnight of Feb. 28 will be issued and will become effective after the last day of effective authorization, regardless of the policy effective dates.
The NFIP recommends that companies writing flood insurance hold any premiums, renewals or added coverage endorsements received on or after Feb. 28.
Eventual reauthorization will likely be granted retroactively, and insurers can issue policies effective as of the date they received payments, according to FEMA.
Policies with a 30-day waiting period would become effective when both the 30-day waiting period has ended and Congress has reauthorized the NFIP.
By Andrew G. Simpson
March 1, 2010
