Citizens Insurance at it Again

Florida Gov. Scott Troubled by Firings at Citizens Property Insurance

A move by Florida’s largest property insurer to dismiss employees responsible for investigating wrongdoing drew criticism last Thursday from Gov. Rick Scott.
Scott, in a strongly-worded letter to the president of Citizens Property Insurance, called the decision “troubling” because it comes while the governor’s inspector general is reviewing reports of lavish travel expenses by top executives at the company. Scott ordered the probe after news reports detailed expensive hotel stays and flights abroad.
The state-created Citizens has nearly 1.48 million policyholders, including many people who live in the state’s heavily populated coastal areas. Scott and others have pressured the insurer to shrink in size because the company has the power to put a surcharge on insurance bills if it can’t cover claims.
The Tampa Bay Times and Miami Herald first reported earlier last week that Citizens was closing its Office of Corporate Integrity and had given termination notices to those employees working in the office. The office handled complaints of employee fraud or misconduct.
Citizens officials say they are replacing the employees with accountants who are more qualified to detect financial fraud.
The governor wrote in his letter that while he agreed with the need to run an efficient operation, he questioned removing the employees before their replacements have been hired.
“An effective compliance system cannot be achieved without an adequate number of independent, highly trained professionals,” Scott wrote. “To ensure that all necessary safeguards are in place, I urge you to use greater caution with future modifications affecting internal investigations, audits and compliance.”
Christine Turner Ashburn, a spokeswoman for Citizens, said the insurer understood Scott’s concerns and that the company was moving quickly to replace the four employees. Ashburn said other auditors at the company would handle work that had been done by those who were let go.
“We are confident that nothing will fall through the cracks as we make this important transition,” she said in an email response.
Hours before Scott put out his letter, Citizens had put its own release where it contended that the media had mischaracterized the changes.
“We believe these changes strengthen our ability to ensure Citizens employees operate with the highest level of integrity,” said Citizens President Barry Gilway in the release.
The flare-up over Citizens came on the same day that the Office of Insurance Regulation announced that it had approved the removal of up to 100,000 policies from Citizens to two domestic insurance companies. Heritage Property & Casualty Insurance and American Integrity Insurance have agreed to take over the policies. Under Florida law, Citizens policyholders have 30 days to accept or decline the offer.

Retirement Planning

Next Week Is National Save for Retirement Week
Consider your goals and plan for the future.

National Save for Retirement Week is the first congressionally endorsed, national event calling on employers to promote the benefits of saving for retirement and to encourage their employees to take full advantage of employer-sponsored plans. The annual campaign is an opportunity to raise public awareness about the importance of saving for retirement. It also aims to shed light on individual financial goals and the ability to meet them in the future. What can employers do? If you offer a retirement plan, continuously stress to employees the importance of saving for retirement; or if they are already saving, the importance of increasing their contributions to meet their retirement goals. Saving doesn’t have to be overwhelming—small systematic savings over a lifetime results in a greater savings and a more secure retirement. Here’s some food for thought about compound interest: Contributing $100 every month for 20 years with an assumed rate of return of 7% will yield a nest egg of about $51,000. If contributions are increased to $150, the nest egg grows to an estimated $76,500. A one-time investment of $1,000 put into an account that earns 5% interest will yield a balance of $3,386 at the end of 25 years. If you don’t offer your employees a retirement plan, do so. You may find administering a 401(k) plan is cost prohibitive, but be aware there are less expensive options available, such as SEPs, simple IRA plans and payroll-deducted IRAs to name a few, which reach the same common goal of retirement savings—but usually for a much cheaper cost.

VIDEO: Why Insurance Rates Increase - Tower Hill Insurance Group

VIDEO: Why Insurance Rates Increase - Tower Hill Insurance Group: Chief Underwriting Officer Joel Curran explains the hows and whys of premium increases.

Lehn Insurance
www.lehninsurance.com

Water Claim Video

http://www.youtube.com/watch?v=Mc1p8mpsWFw&feature=plcp

Top Car Safety Picks

Insurance Institute Names 4 Car Models Top Safety Picks

The Dodge Dart, the model Chrysler is betting on becoming a top-selling small car, was among four new vehicles on the U.S. market to receive a top crash-test rating by an influential safety group on Wednesday.

The 2013 Dart, the first model jointly engineered and designed by Fiat SpA and Chrysler Group LLC, was named a “Top Safety Pick” by the Insurance Institute for Highway Safety.
Three other 2013 models, each one redesigned from previous model years, also earned the top rating: the Hyundai Motor Co. crossover Santa Fe, the Lexus ES 350 midsize luxury sedan, and the Subaru XV Crosstrek hatchback.
The rating means that each vehicle performed well in test crashes evaluating front, side and rear impacts as well as rollovers.
“We had high expectations for the Dart and our engineers delivered,” said Reid Bigland, chief of Chrysler’s Dodge brand.
Of the 180 vehicles IIHS tested for the 2012 model year, 132 were awarded the Top Safety Pick designation, said Russ Rader, spokesman for IIHS.
The IIHS will issue in December its annual list of the safety report for vehicles sold in the U.S. market. These four models were tested after manufacturers requested the tests ahead of the normal IIHS schedule, Rader said.
Each of the four models were introduced to the U.S. market within the last several months.
Hyundai’s Santa Fe sold the most among the new models in September, at 7,378, an increase of 19 percent over last year, a marked improvement over August sales of 4,524, indicating the attractiveness of the newer model.
Hyundai last month said that it aimed to sell 100,000 of the newly remodeled Santa Fe vehicles in the 2013 model year in the U.S. market.
The Lexus ES, from Toyota Motor Corp , sold 6,553 vehicles in September in the U.S. market, up 81 percent from a year ago. A Lexus spokesman said that 80 percent of the cars sold in September were the new 2013 model.
Dart’s September U.S. sales were 5,235, up from August sales of 3,045.
In its first full month of sales, Subaru’s XV Crosstrek’s September sales were 192.
While 73 percent of the models IIHS tested last year received the top safety rating, next year’s test will be more stringent.
The new front crash tests will evaluate a vehicle’s safety in a crash that impacts the front corners. This will be more demanding because most manufacturers create a structure for vehicles that can better absorb middle-front collisions.
In a recent test of 11 luxury midsize cars by using the new corner-front crash evaluation, only two models earned the top safety ranking, the IIHS said.
Subaru is owned by Fuji Heavy Industries of Japan.

Fire Prevention Tips

ESFI provides electrical fire safety tips for Fire Prevention Week

Guest post by: Brett Brenner, President, Electrical Safety Foundation International
Electrical failures and malfunctions are a leading cause of home fires year after year. The Electrical Safety Foundation International (ESFI) is once again joining NFPA’s crusade to raise awareness about the importance of fire safety during Fire Prevention Week. ESFI’s Fire Prevention Week resources complement the “Have 2 Ways Out” campaign by educating the public about simple precautions that can be taken to prevent home electrical fires before they start.
ESFI offers these tips to help you protect your home and family from electrical fires:

• Safety should always be the top priority when working with electricity. ESFI recommends that a qualified, licensed electrician perform all home electrical work in compliance with local and national safety standards.
• Consider having your circuit breakers replaced with arc fault circuit interrupters (AFCIs), which provide enhanced electrical fire protection by detecting dangerous arcing conditions.
• Make sure all electrical panel circuits are properly labeled. Always replace fuses or circuit breakers with the correct size and amperage.
• Keep the area around the electrical panel clear so that you can easily shut off power in an emergency.
• Every month, use the TEST button to check that ground fault circuit interrupters (GFCIs) and AFCIs are working properly.
• Look for warning signs of an electrical problem such as outlets and switches that are warm or make crackling, sizzling or buzzing noises.
• Regularly check cords, outlets, switches, and appliances for signs of damage. Do not use damaged electrical devices.
• Do not use extension cords on a permanent basis, and never use them with space heaters or air conditioners.
• Avoid overloading outlets.
• Do not use light bulbs that exceed the recommended wattage of the light fixture or lamp.

Visit NFPA’s Fire Prevention Week website for more information on the “Have 2 Ways Out”campaign featuring a variety of resources for all audiences including teachers, firefighters and safety advocates, and families. You can even test your fire safety knowledge with the “Fire Prevention Week Quiz!”
Also visit www.electrical-safety.org for more electrical and fire safety information and resources including the Electrical Fire Safety Checklist and illustrated tips sheets to help you properly maintain your smoke alarms and AFCIs.

UP IN SMOKE

TRUE news story. NOT a joke. Maybe. A lawyer in Charlotte, NC purchased a box of very rare and expensive cigars, then insured them against fire among other things. Within a month, having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy, the lawyer filed a claim with the insurance company.
In his claim, the lawyer stated the cigars were lost "in a series of small fires." The insurance company refused to pay, citing the obvious reason: that the man had consumed the cigars in the normal fashion. The lawyer sued....and won! In delivering the ruling the judge agreed with the insurance company that the claim was frivolous. The judge stated nevertheless, that the lawyer held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be "unacceptable fire," and was obligated to pay the claim. Rather than endure lengthy and costly appeal process, the insurance company accepted the ruling and paid $15,000.00 to the lawyer for his loss of the rare cigars lost in the "fires."
But... After the lawyer cashed the check, the insurance company had him arrested on 24 counts of ARSON! With his own insurance claim and testimony from the previous case used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000.00 fine.