Progressive Hits Road with RV Coverage in New Jersey

Thanks to RV insurer, Progressive, New Jersey’s RVers can be better protected when navigating the open road. Progressive has begun selling RV insurance in the Garden State.”

Progressive’s specialized RV insurance includes:

• Total Loss Replacement – Replacement of your RV with a new model of similar make and quality if yours is stolen or totaled (available on newer RVs);
• Emergency Vacation Expense – If your RV is damaged during a trip, you can receive up to $2,000 for lodging and transportation;
• 24-hour Roadside Assistance – Progressive will cover the cost to hook up and tow your RV to the nearest qualified repair facility, not just the local gas station; and
• Full-Timer’s Package – Homeowner-like coverage if you use your RV as a primary residence.

New RV discounts and benefits available include:

• Defensive Driver Discount – Complete a state-sponsored defensive driver course and receive a 10 percent discount on Bodily Injury/Property Damage, Collision and Personal Injury Protection coverages.
• Anti-Theft Device Discount – Have a passive anti-theft device, like a cut-off switch or delayed ignition system, installed on your RV? You can receive a discount of up to 25 percent on Comprehensive coverage.
• Multi-Policy Discount – Receive a discount of 5 percent on your RV policy if you have another Progressive policy including auto, motorcycle and boat.
• Disappearing Deductibles – A deductible decrease of 25 percent every year claim free.

For more information, go to www.rv.progressive.com.

Aid Available for Kentucky Farmers

Kentucky farmers in 58 counties who sustained losses to their farm dwellings, machinery and other farm structures related to the February tornadoes, storms and flooding may, if eligible, receive financial assistance, including low-interest emergency loans, from the U.S. Department of Agriculture's Farm Service Agency (FSA) to help them restore agricultural operations. People in 15 Kentucky counties became eligible to be considered for various disaster assistance programs of the Department of Homeland Security's Federal Emergency Management Agency (FEMA), the U.S. Small Business Administration (SBA) and others. The 15 counties now eligible for individual assistance through FEMA programs are Allen, Bath, Christian, Fayette, Hardin, Harrison, Hart, Hopkins, Meade, Mercer, Monroe, Muhlenberg, Nicholas, Shelby and Spencer. Farmers in these counties may also apply to the SBA for long term low interest loans for storm-related damage to their personal residence. Disaster farm loss assistance in those counties, as well as all counties contiguous to them, is managed by FSA.

Farmers residing in the following contiguous counties who sustained storm-related losses are also eligible to be considered for FSA emergency help: Anderson, Barren, Bourbon, Boyle, Breckinridge, Bullitt, Butler, Caldwell, Clark, Cumberland, Edmonson, Garrard, Grayson, Green, Jefferson, Jessamine, Larue, Logan, Madison, McLean, Metcalfe, Nelson, Ohio, Scott, Simpson, Todd, Trigg, Warren, Washington, Woodford, Bracken, Crittenden, Fleming, Franklin, Grant, Henry, Menifee, Montgomery, Oldham, Pendleton, Robertson, Rowan and Webster.

FSA may make emergency loans to farmers and ranchers (owners or tenants) who were operating and managing a farm or ranch at the time of the disaster. These loans are limited to the amount necessary to compensate for actual losses to essential property and/or production capacity. Farmers and ranchers may also apply for cost-sharing grants for emergency conservation programs such as debris removal from crop/pasture lands, repairs to land/water conservation structures, and permanent fencing. Further information is available from FSA. Farmers interested in applying for assistance should contact their local FSA county office.

Customer Respect Group Looks at Auto Insurers

The Customer Respect Group, an international research and consulting firm that focuses on how corporations treat their online customers, has released findings from its First Quarter 2008 Online Customer Respect Study of Auto Insurance Industry Web sites. The study evaluated the Web sites of a representative sample of automobile insurers. A directly comparable Customer Respect Index (CRI™) is provided for each company. This is a qualitative and quantitative in-depth analysis and independent measure of a customer’s experience when interacting via the Internet. The average CRI score for the industry was 5.5 on a 10-point scale. This represented a slight improvement on the industry’s 2007 showing, and industry progression, although slow, is visible. The industry is about average overall and keeping pace with improvements made in other industries.

The top companies in the study were:

Auto Insurance Customer Respect Index Table
Progressive Casualty	7.5
GEICO	6.9
Liberty Mutual	6.5
Nationwide	6.4
MetLife Auto & Home	6.3

A full Scorecard is available from The Customer Respect Group at (978) 380.6128.

BREAKING: Atlanta Sees Tornado; Injuries Reported

A tornado ripped through downtown Atlanta Friday evening injuring at least nine people according to reports. The storm moved through the area shortly before 10 p.m. EDT and had people running into the streets from a hotel, the CNN headquarters and from the Georgia Dome (pictured), where fans were watching an SEC Tournament basketball game between the University of Alabama and Mississippi State. It appeared some of the roofing panels on the Dome were damaged during the storm. The majority of the damage outside saw windows blown out, street lights and signs down, trees falling on property and at least one roof of an apartment building collapsing.

Minn. Joins in Crop Insurance Rebating Prevention

The Minnesota Department of Commerce has joined 26 other states and the Risk Management Agency of the US Department of Agriculture in an effort to discover and stop the illegal and growing practice of crop insurance rebating. The state agencies have agreed to coordinate with each other and the RMA on rebating investigations and share information regarding rebate schemes in their states. The Department of Commerce and the RMA recently sent a mailing to Minnesota crop insurance providers informing them of this new partnership and reminding them that the practice of crop insurance rebating is illegal. Examples of rebating schemes include items of value being tied to crop insurance purchases, the creation of special investment entities and soliciting farmers as licensed sub-agents so they can share the commission on their own crop insurance policies.

Specifically, the Department of Commerce has agreed to:

• Notify RMA and other states when a federal crop insurance rebating complaint or allegation is received;
• Provide RMA and other states background information on relevant past rebating investigations;
• Coordinate with RMA and other states on all new rebating investigations, as appropriate;
• Share with RMA and other states any specialized rebating analyses (such as information gathered from data mining);
• Share state and federal legal expertise to review and analyze complex rebating schemes as well as other crop insurance issues;
• Inform RMA and other states of any assessment of penalties or sanctions taken by a state involving a rebate violation, and
• Take appropriate actions when violations of the respective laws are identified.

The goal of this cooperation is to enable the states and RMA to be better equipped to handle traditional illegal rebating schemes in order to maintain professional conduct and ethics in this insurance marketplace.

Ky. Woman Charged in Fraud Case

A Marion, Ky., woman must repay $69,414 after reportedly receiving and cashing disability benefit checks for almost four years after the insured’s death. According to Lyon Circuit Court records, Tanya K. Moodie, 47, was named attorney-in-fact for Clara Ingram, a Kentucky Department of Corrections employee who received permanent partial disability benefits due to an injury covered under workers’ compensation. After Ingram’s death on Nov. 28, 2000, Moodie reportedly collected and cashed her benefit checks until August 2004. Following an investigation by the Kentucky Office of Insurance Fraud Investigation Division, Moodie was charged with one felony count of insurance fraud. She entered a guilty plea in February and spent 28 days in jail. Earlier this week, Moodie received a two-year, suspended jail sentence and will remain on probation until full restitution is made.

Ohio Grants License to Berkshire Hathaway Assurance

The Ohio Department of Insurance has granted licensure to Berkshire Hathaway Assurance Corporation to conduct financial guarantee business in the state of Ohio, Insurance Director Mary Jo Hudson announced. The company insures bonds issued to investors by municipalities who need funding to cover public debt. Berkshire Hathaway Assurance Corporation is domiciled in New York and carries a superior credit rating. Its parent company is Berkshire Hathaway Inc., which is partly owned and controlled by Warren Buffett.

Pa. Commissioner Offers Teen Driving Tips

Before young drivers get behind the wheel, parents should discuss with them how to remain safe and avoid distractions, acting Pennsylvania Insurance Commissioner Joel Ario said this week. “Spring is an exciting time for young adults, with warmer weather at hand and the end of the school year approaching,” he said. “But once a teen driver gets in a car with a group of friends, the excitement can quickly get out of hand and become dangerous.” The newest edition of Consumer News You Can Use, the Office of Consumer Liaison’s quarterly newsletter, highlights the dangers of teen driving and discusses important issues parents should address with young drivers. Ario encourages parents to explore resources such as MADD’s (Mothers Against Drunk Driving) THINK.Prom, a program that gives students the chance to pledge to be drug- and alcohol-free on prom night. Ario also advises parents to make sure teen drivers are warned that cell phone use, texting, eating food, or socializing with passengers can be dangerously distracting and should be avoided. In Pennsylvania, a driver with a junior license cannot be on the road between 11 p.m. and 5 a.m., unless accompanied by a parent, guardian or spouse who is at least 18 — but not an 18-year-old friend. If a junior driver is employed during those hours, or is involved with public service or a volunteer fire company, they must carry an affidavit from their supervisor that authorizes them to drive during the restricted period.

Illinois to Get Federal Aid from Feb. 5-6 Storm

The head of the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) announced that the President declared an emergency exists in the state of Illinois and ordered federal aid to supplement state and local response efforts in the area struck by record snow and near record snow during the period of Feb. 5-6, 2008. FEMA Administrator David Paulison said that the President's action makes federal funding available to the state and eligible local governments in Boone, Carroll, Jo Daviess, Lake, McHenry, Stephenson, and Winnebago counties. The assistance is available to state and eligible local governments on a cost-sharing basis for emergency protective measures that were undertaken to save lives and protect public health, safety and property over a continuous 48-hour period during or proximate to the incident period.

Earthquake Conference Set for Seattle April 22-26

Hundreds of geoscientists, engineers, insurance regulators, building officials, emergency managers and earthquake professionals will converge in Seattle to take part in the National Earthquake Conference, April 22-26 , at The Westin Hotel. The conference includes presentations from world-class tsunami experts, and according to Cascadia Region Earthquake Workgroup (CREW) Executive Director Bob Freitag, you don't have to be an expert-or even attend the conference-to participate. Local host presenters include George Crawford, Washington State Emergency Management Division; Brian Atwater, U.S. Geological Survey; Chris Jonientz-Trisler, Federal Emergency Management Agency and Eddie Bernard, National Oceanic and Atmospheric Administration. The Tsunami Session Webcast is scheduled for Thursday, 24 April 2008 at 7:00 p.m. PDT. The session can be viewed at www.earthquakeconference.org (from the homepage, click on "Tsunami Session - view and post questions") or www.UWTV.org, 15 minutes before the session begins. The Seattle conference is hosted by CREW, the Western States Seismic Policy Council (WSSPC), Central United States Earthquake Consortium, Northeast States Emergency Consortium, Earthquake Engineering Research Institute and the Emergency Preparedness for Industry and Commerce Council of Canada, and supported by the Federal Emergency Management Agency and the United States Geological Survey. Additional information on this year's conference is available at: www.earthquakeconference.org.

Fla. Commissioner Talks Property Ins. Accountability

Florida Insurance Commissioner Kevin McCarty released the following statement on property insurance accountability.

"I want to express my deep appreciation for the hard work and support of the Select Committee and its co-chairs, Sen. Atwater and Sen. Geller. The Committee reached an impressive level of detail in its analysis of the complex issues involved in the insurance company rate filings and the other issues it examined. The proposals outlined by the Committee are very positive, because of the overall increase in consumer protections they would offer."

On specific Select Committee proposals:

"Clarifying the law that only hurricane models that have passed an independent review process may be used and putting limits on profit and reinsurance charges would protect consumers from unwarranted rate increases. Permanently repealing the 'use-and-file' rate increases, eliminating the industry-friendly arbitration process and prohibiting the introduction of new evidence at administrative hearings all will require insurers to justify their rate increase requests when they first make their filings with the Office of Insurance Regulation. The proposal on the non-renewal of policies is important for consumers, because it would stop companies from reducing risk through the use of non-renewal programs but then not reducing rates accordingly. I applaud the work of the Select Committee and look forward to working with the standing committees during the legislative session."

N.Y. Reports '07 Fraud Cases Net Over 700 Arrests

Insurance and health-care related fraud led to 708 arrests in 2007, a 17 percent increase over the previous year, the New York State Insurance Department said in a newly released report. The illegal use of the Internet to sell $6 million in steroids and human growth hormones, which led to the arrests of 24 suspects, is an example of the complex insurance fraud schemes investigated by the Department's Frauds Bureau, along with local authorities.

The report noted:

• Court-ordered restitution of $20 million stemming from convictions against 147 people in 2007.
  
  
• The arrests of 149 people for workers' compensation fraud, including 89 people arrested for fraudulently taking benefits while secretly working second jobs.
  
  
• A total of 1,072 new cases opened for investigation by the Bureau.

The Bureau reported that most insurance fraud cases are now tracked electronically by means of a web-based case management system that became fully operational in 2007. The system allows insurers to electronically transmit suspected fraud reports to the Bureau and allows Bureau personnel to track investigative tasks and events from initial assignment through closure. The complete report may be accessed on the Department's Web site, www.ins.state.ny.us.

UPDATE: Spitzer Offers Resignation in Light of Scandal

Disgraced New York Gov. Eliot Spitzer resigned on Wednesday, turning power over on March 17 to Lt. Gov. David Paterson. Spitzer, who is alleged to have been involved in a call-girl ring, is reportedly trying to work a plea deal with federal prosecutors, possibly to avoid jail time. The former attorney general, who rode into Albany with a resume of fighting crime, especially in the area of prostitution, was reportedly caught by federal wiretaps that identified him as a client of a high-priced prostitution ring. To date, four people have been interested who were reportedly involved with the ring. Federal court papers claim that Spitzer is "Client 9" and that he arranged to and met with a call girl in Washington, D.C.'s Mayfair Hotel for a couple of hours on Feb. 13. He reportedly paid $4,300 for the get-together.

CIRMA Implements Valley Oak Systems Program

Valley Oak Systems Inc., a unit of Aon Corporation and a provider of insurance technology solutions, announced that Connecticut Interlocal Risk Management Agency (CIRMA), one of the largest public entity risk management pools in the nation, has implemented Valley Oak's iVOS Policy Administration System. In 2005, CIRMA implemented the iVOS Claims Management System, so it now leverages iVOS as a complete "one system" solution for its workers' compensation program. CIRMA serves the risk management and risk financing needs of Connecticut municipalities and local public agencies. After more than 27 years of operation, CIRMA serves 85 percent of the municipalities in Connecticut and has grown 600 percent since 2000.

Fla. Commissioner Inks Citizens' Order

Florida Insurance Commissioner Kevin McCarty has signed an Order
approving Citizens' take-out plans for the year and requiring Citizens Property Insurance Corp. (Citizens) to notify policyholders whose agents have refused to allow their policies to be removed from Citizens. The plans also provide for the first take-outs of commercial-residential or condominium association policies. Under current Florida law, companies approved to remove policyholders from Citizens, known as take-out companies, must first get permission from the policyholder's agent. If the agent is unable or unwilling to transfer the Citizens' policy to the take-out company, the policy stays in Citizens. As a time-saving measure, Citizens notifies take-out companies of agencies that will not agree to take-outs. Because take-out companies have been instructed to avoid selecting policies from these agencies that do not consent to take-outs, the policyholders may never know that a take-out offer was received. Beginning May 1, the Order requires Citizens to send all qualified policies to take-out companies for selection without instructing them not to choose qualified policies from a list of agents and agencies that have refused in the past. If the agent refuses the take-out, Citizens must notify the policyholder of their agent's refusal and provide the take-out company's contact information should the policyholder wish to be removed from Citizens.

McCarty also announced that the Office of Insurance Regulation (Office) has approved the plans of 10 insurance companies to remove policies from Citizens over the next year. Some of the companies already have begun removing policies, and others will begin in April. Taken as a whole, the approved plans will remove over 400,000 policies from the state-run insurance company and place them in the private market. Florida law allows Citizens' policyholders, to refuse the offer and stay in Citizens. All of the take-out companies have agreed to offer the same or better coverage than the policyholder had with Citizens, and at the same or lower price.

The 10 companies that have been approved to remove Citizens policies are:

• American Integrity Insurance Co. of Florida: 75,000 policies total; 34,812 removed to date.
• First Home Insurance Co.: 30,000 policies total; 10,788 removed to date.
• Landmark One Insurance Co.: 50,000 policies total; 10,995 removed to date.
• Florida Peninsula Insurance Co.: 80,000 policies total; 16,272 removed to date.
• HomeWise Preferred Insurance Co.: 62,000 policies total; 11,789 removed to date.
• Southern Oak Insurance Co.: 75,000 policies total; 6,678 removed to date.
• Homeowners Choice Property & Casualty Insurance Co.: 30,000 policies total; 9,548 removed to date.
• Northern Capital Insurance Co.: 20,000 policies total; 4,023 removed to date.
• Sunshine State Insurance Co.: 23,607 policies total; 4,412 removed to date.
• Argus Fire & Casualty Insurance Co. : 18,000 policies total.