Prepare Now for Forecasted Winter Storms

Standard Homeowners Policies Do Not Cover Flood Damage; and

Flood Insurance Policies Typically Take Effect 30 Days After Purchase

Sever storm is expected to hit parts of already fire-impacted California early next year, according to weather forecasters. Therefore it is the best time for residents to review their policy coverage including supplemental policies such as flood insurance. 

Residents should also document their possessions by way of an inventory so that everything is properly covered if flooding occurs. No doubt, there can’t be any worst situation than losing one’s belongings but the blow can be lessened if you are prepared for it. A good record of your assets that also has serial number for each item can make your task easier should any eventuality occur.

In case of insurance coverage, policy holders should enquire with their insurer about their exact coverage. They should also find out and discuss whether they should purchase flood insurance. It is important to understand that a flood coverage policy becomes active only after 30 days of its purchase. Also, most of the homeowner’s policy does not cover mudslides. However, when heavy rain is predicted in the coming days, now is the right time to consider various policy options. You should note that your building content is covered by flood insurance. Cost of the policy is calculated by considering various factors including flood risk in the region, age of the structure, type of the structure (residential or commercial, single family or multi-family etc.).

California Department of Insurance helps you prepare home inventory. For more information about documenting your possessions or to receive a free home inventory guide, call the California Department of Insurance at 800-927-HELP or visit our web site.

California Windstorms: Be Aware Of What Your Insurance Policy Covers

As heavy winds blow across California, Insurance Commissioner Dave Jones today advised all Californians to be wary of weather-related dangers and urged homeowners to conduct a home inventory as soon as possible to ensure that their homes and possessions are properly covered.

Commissioner Jones also urged consumers to review their insurance coverage on a regular basis including supplemental insurance policies. “While wind damage is covered under a homeowner’s policy, consumers must be aware that policies read differently so you need to be familiar with the specific language in your individual policy,” said Commissioner Jones. “There can be some exceptions to standard insurance policies that homeowners should be aware of.”

Fallen trees and flying debris are common occurrences when there are heavy winds like the ones whipping through California. It is common for trees to uproot and fall during high winds. The homeowner’s policy usually covers the cost of tree removal but is often subject to sublimits – such as $500 per tree and perhaps a maximum limit for all trees removed of $1,000. Again, check the language in your policy for the coverage that applies. If a covered loss leaves debris that must be removed, there may be coverage for the cost of removing the debris. If your car is hit by a tree, damage is covered by your auto policy’s “physical damage” coverage provided that you have it.

A Few Tips to Keep in Mind

• A complete household inventory list will provide a permanent record of the home’s contents and value, serial numbers listed for electronic items and appliances;
• After a loss, make temporary repairs to prevent further damage;
• After you suffer a loss, you should immediately report the damage to your insurance company agent or representative to start the claims process. 

Commissioner Jones urges consumers to contact the Department of Insurance if they have questions or concerns. If you make a claim to your insurer and it is rejected or you have any questions, call the Department’s toll-free hotline – 800-927-HELP (4357) – which is staffed by experienced professionals to handle a variety of insurance issues and complaints. You can also go to the web site at www.insurance.ca.gov.

Improvements to State-Sponsored Low Cost Auto Insurance Program Announced

Recommends the gift of insurance this holiday season
Announces program enhancements, including immediate access to temporary proof of insurance cards; ability to receive information via text message

Insurance Commissioner Dave Jones today announced important improvements to the California Low Cost Automobile Insurance Program (CLCA).

Beginning December 12, a new temporary proof of insurance card can now be printed at the offices of participating insurance agents, thus eliminating the two-week wait for mailed proof of insurance cards needed to register a car with the Department of Motor Vehicles.

“Consumers complained that a two-week wait for identification cards made this program less desirable,” said Insurance Commissioner Dave Jones. “Waiting two weeks for cards to show up in the mail meant that people either drove without proof of insurance, or they signed up for higher-cost insurance so they could get the identification cards and go to DMV.”

The program also launched a text message outreach option. When consumers text “low cost” to 653-74, they are prompted to provide their zip code, they are then matched to a pre-screened insurance agent in their area who will call the consumer with a formal quote and assist them in signing up for the CLCA.

Advertisements with the text message information are slated for places where people are sitting still with their mobile phones: inside buses, on gas station pumps and inside laundromats. Texting while driving is unsafe and against the law.

The program provides liability-only insurance for less than $400 a year, and the amount could be much less, depending on the county where the consumer lives.

Drivers may qualify if they: 

•  Have a good driving record;
•  Are at least 19 years old;
•  Have been continuously licensed to drive for three years;
•  Own a vehicle valued at $20,000 or less;
•  Meet the income eligibility requirements ($27,225 for one person, $36,775 for two people, up to $55,875 for a family of four).

“More than 4 million cars, or 15 percent of the cars on the road, don’t have insurance,” Commissioner Jones said. “If financial difficulties have you thinking about cancelling your car insurance, you should check out California’s Low Cost Auto Insurance Program instead. Remember, driving without auto insurance is illegal. Celebrate this holiday season with the gift of insurance and accompanying peace of mind you’ll enjoy in the upcoming year.”

The CLCA was established by the Legislature in 1999 as a program designed to provide income eligible persons with liability insurance protection at affordable rates as a way to meet California's financial responsibility laws.

AB 689, The New Annuity Protection Law to Protect Seniors

Commissioner Dave Jones Reminds Seniors New Annuity Protections Take Effect January 1, 2012  

Responding to new U.S. Census data released this week indicating a rapidly-growing older population, Insurance Commissioner Dave Jones today reminded consumers that new sweeping annuity protections take effect January 1, 2012.

“For far too long, seniors have been victimized by the aggressive marketing and sale of annuity products that may not be suitable for them,” said Commissioner Jones. “Consumers have unwittingly bought these products not realizing that their invested funds will not be available to them, or their funds are terribly expensive to recover if they want to withdraw their money to pay for immediate expenses. This can be financially devastating to seniors on a fixed income. A new law, AB 689, sponsored by the Department, will help protect the hard-earned financial security of the growing number of older Californians.”

New census figures show the number of individuals 65 and older is rising faster than the total U.S. population. According to the 2010 Census, there were 40.3 million people in that age group – increasing by 5.3 million since the 2000 Census.

“These statistics point to an even greater need for the new law, which gives us the tools to go after scam artists preying on innocent seniors,” said Commissioner Jones.

AB 689 will require insurers to verify that an annuity purchase, replacement or exchange is reasonably suitable for the consumer based on an evaluation of the individual’s age, income, liquidity needs and financial objectives, among other factors. It also requires that a consumer receive a tangible net benefit from the purchase of the annuity. The Commissioner can revoke an agent’s license, impose fines, and/or order that lost funds be restored to the consumer when unsuitable annuity is sold.

Another new law, taking effect in January, will protect seniors from being persuaded to use the proceeds of a reverse mortgage to buy unsuitable insurance products. AB 793, sponsored by the Department, will stop agents and brokers – knowing a senior has just acquired a reverse mortgage – from soliciting those same funds from the individual for a non-casualty insurance product.

“A reverse mortgage should be a senior’s last option when needing cash to meet an immediate need,” said Commissioner Jones. “This new law will help return the concept of a reverse mortgage to its original intent and protect seniors from being sold something they simply don’t need.”

Insurance Commissioner Jones Offers Tips to Save More on Car Insurance

Insurance Commissioner Dave Jones released a series of tips geared toward helping California consumers save more when they are shopping for car insurance.

"In today's tight economy every dollar counts," said Commissioner Dave Jones. "Consumers should review their options when shopping for car insurance to find the right fit for both their car and their pocketbook."

Commissioner Jones offered the following tips and important questions consumers should ask when shopping for car insurance:

• When purchasing a new car, you will need both liability coverage (to meet state financial responsibility laws) and collision and comprehensive physical damage coverage to protect the vehicle from damage caused by an accident, theft or vandalism. Your lender will require you to purchase collision and comprehensive coverage; however, if you are considering a used car, and do not have a lender, full coverage may not be the best choice to save money.
• With the availability of online comparison, it is convenient to shop for car insurance on your own time and at your own pace, and most companies offer free quotes and same day response.　
• Many insurers offer discounts if you drive less miles, are married and over 25. You may also qualify for discounts if you're a driver with a good record, a student, or belong to a group. Discounts are also available to seniors over 55 and to active duty or retired military.
• Some insurers offer additional discounts for multiple policies, and, if you choose, you can bundle your auto, home, renters or recreational vehicle policies.
• Ask your current insurer about the right deductible for your auto and financial needs, because a policy that has a higher deductible often has a lower premium. You can also examine different deductible choices when seeking a quote.
• Some insurers offer discounts for taking a driver training course.
• Some insurers will have a higher premium for a sport or luxury model. Additionally, some high-theft models will also have a higher deductible. Do your homework and find the right car and insurance policy that fits your needs the best.

"These are very simple, but very effective tips that can help consumers acquire affordable car insurance," Commissioner Jones said. "It is important that consumers educate themselves about the wide-range of car insurance options they have available to them, so they are able to find the best fit for their insurance needs. And make sure to ask about all available discounts."

Travellers of Massachusetts Launches Accident Forgiveness, New Car Discounts

New car purchases in Massachusetts are on pace to exceed the 2010 year-end total of 310,547 by more than seven percent, according to data from the Massachusetts Registry of Motor Vehicles. In response to increasing new car sales and to help Massachusetts residents save on auto insurance, Travelers of Massachusetts has launched its new car discount option.

The new car discount provides savings of up to five percent on auto collision coverage for new vehicles. It applies to vehicles less than three years old, with the level of discount based on the car’s model year.

In addition to the new car discount, Travelers of Massachusetts is offering accident forgiveness. customers who have been with Travelers of Massachusetts for four years or more and are free of accidents, violations and major comprehensive claims for five years may qualify for this program.*

In addition to the new car discount and accident forgiveness, Travelers of Massachusetts offers other ways to save for its auto insurance customers such as pay in full discount, annual mileage discount, a discount for hybrid vehicles, and a multi-policy discount.

*The Accident Forgiveness program is subject to individual eligibility. Source: The Insurance Journal

Michigan Motorcyclist Loses Accident Claim Due to Imprecise Location

There is no dispute that a motorcyclist suffered leg and ankle injuries that required surgery. But Kevin Agee’s lawsuit against the state has been dismissed because he wasn’t precise about the location of his crash.

Agee went airborne in October 2009 on the service drive of the Southfield Freeway in Dearborn. He sued the Michigan Department of Transportation claiming the road was defective.

The state appeals court dismissed the lawsuit last week, saying Agee didn’t follow Michigan law, which requires a notice with details about the bad road. A three-judge panel at the court says the area is a quarter-mile long, but Agee didn’t provide any landmarks in his notice about the wreck.

Auto Premium Quote: TOLL FREE Numbers for Consumers

The California State Legislature passed a Bill (AB) 2677 to help consumers shop for a personal auto insurance policy. Accordingly, each insurer that sells private passenger automobile insurance policies is required to provide potential insurance buyers with a cost estimate of its lowest priced personal auto policy at the limits the consumer requests and for which the consumer is eligible. This requirement can be met by one of the two ways:

·         Maintain a toll-free telephone and/or

·         Maintain an Internet Web site where consumers can obtain a cost estimate or be referred to an insurance agent/broker who will provide the estimate. 

Following is the list of insurers and their respective telephone and/or Web address information. Last updated in October, 2011

Insurer Name	Telephone	Website Address
21ST Century Casualty Company	(800) 211-7283	www.21st.com
21ST Century Insurance Company	(800) 211-7283	www.21st.com
Affirmative Insurance Company	(800) 877-0226
AIG Indemnity Insurance Company	(877) 310-5687	www.21st.com
AIU Insurance Company	(877) 310-5687	www.21st.com
Alliance United Insurance Company	(866) 530-5500	www.AllianceUnited.com
Allied Property and Casualty Insurance Company	(800) 282-1446	www.alliedinsurance.com
AllState Indemnity Company	(800) 557-8283	www.allstate.com
AllState Insurance Company	(800) 557-8283	www.allstate.com
AllState Property and Casualty Insurance Company	(800) 557-8283	www.allstate.com
AMCO Insurance Company	(800) 282-1446	www.alliedinsurance.com
American Economy Insurance Company	(800) 472-3326
American Home Assurance Company	(877) 310-5687	www.21st.com
American International Insurance Company of California, INC.	(877) 310-5687	www.21st.com
American States Insurance Company	(800) 472-3326
American States Insurance Company of Texas	(800) 472-3326
American States P Insurance Company	(800) 472-3326
Amica Mutual Insurance Company	(800) 242-6422	www.amica.com
Atlantic Mutual Insurance Company		www.atlanticmutual.com
Balboa Insurance Company	(800) 894-0976
California Capital Insurance Company	(800) 682-9255	www.ciginsurance.com
California Casualty Indemnity Exchange (The)		www.calcas.com
Centennial Insurance Company		www.atlanticmutual.com
Clarendon National Insurance Company	(800) 333-5553
Coast National Insurance Company	(800) 888-0080
Cornerstone National Insurance Company	(888) 735-5764
Danielson Insurance Company		www.naicc.com
Danielson National Insurance Company		www.naicc.com
DeerBrook Insurance Company	(800) 349-7342	www.deerbrook.com
Depositors Insurance Company	(800) 282-1446	www.alliedinsurance.com
Delos Insurance Company	(800) 203-1179	www.delosinsurance.com
Eagle West Insurance Company	(800) 682-9255	www.ciginsurance.com
Esurance Property and Casualty Insurance Company	(800) 378-7262	www.esurance.com
Empire Fire and Marine Insurance Company	(800) 228-9283
Encompass Insurance Company		www.encompassinsurance.com
Everest National Insurance Company		www.everestnational.com
Farmers Insurance Exchange		www.farmers.com
Federal Insurance Company		www.chubb.com
Fidelity National Insurance Company	(866) 699-1885	www.fnf.com
Financial Indemnity Company		www.unitrinspecialty.com
Fireman's Fund Insurance Company	(800) 633-6006	www.firemansfund.com
First American Property & Casualty Insurance Company	(888) 922-5343	http://insurance.firstam.com
First National Insurance Company of America	(800) 472-3326
GEICO Casualty Company	(800) 841-3000	www.GEICO.com
GEICO General Insurance Company	(800) 841-3000	www.GEICO.com
GEICO Indemnity Company	(800) 841-3000	www.GEICO.com
General Insurance Company of America	(800) 472-3326
Glens Falls Insurance Company (The)		www.encompassinsurance.com
Government Employees Insurance Company	(800) 841-3000	www.GEICO.com
Granite State Insurance Company		www.21st.com
Guideone Mutual Insurance Company	(877) 448-4331
Guideone Specialty Mutual Insurance Company	(877) 448-4331
Harbor Specialty Insurance Company	(800) 233-2442
Hartford Casualty Insurance Company		www.thehartford.com
Hartford Underwriters Insurance Company		www.thehartford.com
Horace Mann Insurance Company	(800) 999-1030
Horace Mann Property & Casualty Insurance Company	(800) 999-1030
Hudson Insurance Company	(866) 836-7064	www.hudsoninsgroup.com
IDS Property Casualty Insurance Company	(800) 842-3344	www.ameriprise.com/autohome
Infinity Insurance Company	(800) 782-1020
Integon Preferred Insurance Company		www.GMACInsurance.com
InterInsurance Exchange of The Automobile Club	(877) 222-1445	www.aaa.com
Kemper Independence Insurance Company	(877) 252-7878	www.ekemper.com
Liberty Mutual Fire Insurance Company	(800) 837-5254	www.libertymutual.com
Markel American Insurance Company	(800) 236-2862
Maryland Casualty Company	(800) 208-1003
Mercury Insurance Company	(800) 956-3728	www.mercuryinsurance.com
Merastar Insurance Company	(800) 637-2782	www.merastar.com
Meritplan Insurance Company		www.arrowheadgrp.com
MGA Insurance Company	(800) 552-2463
MIC General Insurance Corporation	(800) 847-2886
Mid-Century Insurance Company		www.farmers.com
National American Insurance Company of California		www.naicc.com
National General Insurance Company	(800) 847-2886
National Interstate Insurance Company	(800) 929-1500	www.nationalinterstate.com
Nations Insurance Company	(800) 209-4110
Nationwide Insurance Company of America	(800) 282-1446	http://www.nationwide.com/
NorthBrook Indemnity Company	(800) 349-7342	www.deerbrook.com
Northern Insurance Company of New York	(800) 208-1003
Northwestern Pacific Indemnity Company		www.chubb.com
Occidental Fire & Casualty Insurance Company of North Carolina	(800) 959-9956	www.reliantgeneral.com
Ocean Harbor Casualty Ins. Company	(800) 778-4732
Oregon Mutual Insurance Company	(800) 444-7012	www.ormutual.com
Pacific Indemnity Company		www.chubb.com
Pacific Property and Casualty Company		www.anpac.com
Pacific Specialty Insurance Company	(800) 303-5000 or (800) 828-3003	www.psic-onespot.com
Paris Re American Insurance Company	(866) 729-8999
Permanent General Assurance Corporation	(800) 582-6401	www.pgac.com
Personal Express Insurance Company	(800) 499-3612	www.expressinsurance.com
Progressive Choice Insurance Company	(888) 464-3841
Progressive West Insurance Company	(800) 300-3693
Redland Insurance Company	(800) 937-3965
Safeco Insurance Company of America	(800) 472-3326	www.safeco.com
Safeco Insurance Company of Illinois	(800) 472-3326	www.safeco.com
Safeway Direct Insurance Company	(888) 581-3700	www.safewaydirect.com
Safeway Insurance Company	(800) 807-2339	www.safewayins.com
Southern Insurance Company	(888) 793-7888
Standard Fire Insurance Company		www.travelers.com
Starnet Insurance Company	(800) 343-0592
Starr Indemnity Insurance Company	(877) 858-9666
State Farm Fire and Casualty Company		www.statefarm.com
State Farm General Insurance Company		www.statefarm.com
State Farm Mutual Auto Insurance Company		www.statefarm.com
Sterling Casualty Insurance Company	(800) 949-3274	www.dashers.com
Sutter Insurance Company	(800) 530-1124	www.sutterinsurance.com
Starr Indemnity Insurance Company	(877) 858-9666
Tokio Marine & Nichido Fire Insurance Company, LTD	(866) 791-7571
Topa Insurance Company	(800) 949-6505
Transguard Insurance Company of America	(800) 959-9956	www.reliantgeneral.com
Twin City Fire Insurance Company		www.thehartford.com
Unitrin Auto and Home Insurance Company	(877) 252-7878	www.ekemper.com
Unitrin Direct Insurance Company	(800) 253-7744	www.unitrindirect.com
Unitrin Direct Property & Casualty Company	(800) 253-7744	www.unitrindirect.com
USAA		www.usaa.com
Victoria Fire & Casualty Company	(800) 888-8424
Vigilant Insurance Company		www.chubb.com
Viking Insurance Company of Wisconsin	(800) 334-0090
Wawamesa General Insurance Company	(800) 640-2920	www.wawanesaus.com
Wawanesa Mutual Insurance Company (The)	(800) 640-2920	www.wawanesaus.com
Western General Insurance Company	(800) 984-3533	www.westerngeneral.com
Western United Insurance Company	(800) 207-3618
Workmen's Auto Insurance Company	(800) 737-1757