AT&T Texting While Driving Documentary

All proceeds to benefit the annual Molyneaux Insurance Charity Euchre event scheduled this year for Thursday November 1^st.

If you have any questions please call Molyneaux Insurance, 563-324-1011 or email lj@molyneaux.com.

Tornadoes and other storms slammed U.S. insurance companies throughout 2011, and homeowners’ premiums are starting to rise as a result.

 Many Iowans are seeing double-digit increases, and a few will pay premiums more than 20 percent higher when it’s time to renew their policies.

 Why are homeowners in regions unaffected by the disasters facing higher rates? Insurers are charging more in order to pay for higher loss projections and the rising cost of reinsurance, which is insurance on their insurance.

 “Everybody got clobbered,” said Bob Skow, CEO of the Independent Insurance Agents of Iowa. “Even if you had a carrier who was lucky enough not to experience high loss ratios, they’re looking at higher rates on their reinsurance.”

Storms along the East Coast, tornadoes in the Southeast and in Joplin, Mo., and the earthquakes in Japan and New Zealand have wreaked havoc on insurance company balance sheets, exposed the fact that some companies may have too many policyholders in certain geographic areas and brought on losses for reinsurers that will translate into higher customer premiums, Skow said.

 Insured losses in the U.S. for the first half of 2011 were $17.8 billion, more than the $13.6 billion insurers paid in all of 2010.

 The company with the most homeowners insurance in Iowa is State Farm — with about 28 percent of the market.

 State Farm, based in Bloomington, Ill., said its premiums rose 5 percent on average in the state in 2011.

 That compares with an average nationwide increase of 3.5 percent.

A spokeswoman for Nationwide, the parent company of Allied, Depositors and Amco, said their average rate increase in 2011 was 6 percent.

 But of 90 filings for rate changes at the Iowa Insurance Division — insurance companies must record their premium increases with the state regulator — roughly 30 companies averaged a more than 10 percent increase in 2011.

 Three companies with smaller market shares in Iowa — GuideOne America Insurance Co., Sentinel Insurance Co. and Sentry Mutual Insurance Co. — raised their rates 20 percent or more, the Insurance Division said.

GuideOne writes homeowners insurance through several companies, said Melany Stonewall, a spokeswoman for the West Des Moines company.

 GuideOne America Insurance’s premiums rose 25.6 percent, she said, but the average increase for the company across all its brands was 18.5 percent.

 That’s because of an “increase in the frequency and severity of claims, which were driven primarily by a larger-than-normal number of fire and weather losses this year,” Stonewall said.

 Not all homeowners’ premiums in Iowa went up, because rates are determined by neighborhood and policyholder, said Tom Alger, a spokesman for the Iowa Insurance Division.

Insurers might jack up premiums on a home that’s getting older, or one in a neighborhood where crime is becoming a bigger problem. Premiums might drop for a home that’s been remodeled, or where neighborhood crime is falling.

 “Iowa has a robust insurance market, which provides consumers with competitive choices,” Alger said.

 “We encourage shopping around to find out if a lower rate is out there.”

In 2008, the last year for which the national Insurance Information Institute has definitive data, average annual premiums for an Iowa homeowner were $612.

 That was $179 less than the national average of $791. Average premiums rose slightly across the United States to $807 a year by 2010.

 Neither the Insurance Information Institute nor the Iowa Insurance Division has average premiums for Iowa or the United States in 2011.

But the cost is almost certainly rising more than in previous years, say agents and analysts. Thunderstorm losses for just the first six months of 2011 were double the annual average from 2006 to 2010.

EMC Insurance Group, the publicly traded portion of Employers Mutual, reported losses in each of the first three quarters of 2011. Ohio-based Nationwide Insurance — whose Depositors and Amco insurance lines are among the top five homeowners insurance companies in Iowa — posted losses in the second and third quarters.

Reinsurance companies generally cover losses for insurance companies over a certain threshold. But the higher losses cause them to raise their rates to insurers, and part of the cost is passed on to customers.

Elsewhere in the country, three small insurance companies with policyholders in Joplin, Mo., became insolvent after paying claims on the tornado that destroyed much of that town.

The Missouri Farm Bureau is taking over policies for the companies, which had $29 million in premium sales in 2010 and had to pay out $48 million after the tornado.

 2.         DIRECT MEDICAL CARE – Utilize the established medical provider whenever possible. 

 3.         Document the injury –Require the employee to provide a detailed, written account of how the incident occurred, then have them sign and date it.  Also, have any eye-witnesses provide their own written accounts of the accident.  The quicker you gather the information, the better. 

 4.         Drug/Alcohol test at time of injury – Include a statement in your employee handbook requiring drug testing at a certified hospital/clinic at the time of injury.  In addition, to be effectively used as a defense:   a written program must be in place and your management team must participate annually in a formal drug testing awareness program. 

 5.          Return to Work Program – Bring employees back to work in whatever capacity they are able within their restrictions.  Employees feel valued if they are needed back at work (even doing other work) and they are able to keep in touch with their friends/co-workers.  Returning to work also reinforces good attendance and work habits.

 6.         RETRAINING – Prevent a recurrence of injuries by retraining employees on the correct way to perform tasks.  Use the information developed by the Formal Safety Committee.

 7.          COMMUNICATION – 3 Points of Contact

1. Communicate with the injured employee.  Stay in touch if they are NOT on light duty.  Have them come to work if at all possible.  Be able to see them at least once a week.
2. Communicate with the Medical Provider to make sure they understand the situation (availability of light duty, job requirements, etc) and to make sure appointments are kept.  Whenever possible, attend appointments with employees.
3. Communicate with the claims adjuster on a regular basis and involve Molyneaux staff at any time.  Severe injuries may have long Return to Work curves so it is important to keep posted on when they can return.   If needed call provider. 

Stay in touch with those who impact the results

For assistance with implementing any of these strategies, contact our sister company:

2.         STATE OF HIRE – Reduce the odds of a claim being filed in the state of Illinois (if you are an Iowa-based employer) by requiring Illinois residents to come to an Iowa location to receive a job offer.   Do not extend a job offer over the phone or by email to Illinois residents.  The only three requirements used to establish the state in which an employee can collect benefits are:  State of Hire, State of Employment and State of Injury.

3.         ACCOUNTABILITY – Establish accountability throughout the management chain so the entire organization has an external incentive to act with safety as a priority.  Make “Safety” an element of all employees’ performance reviews.  Over a period of time, external incentives become part of the culture and become internal incentives.

4.         FORMAL SAFETY COMMITTEE – Create a Formal Safety Committee made up of a diverse group of employees including Senior Management, Safety/HR/Operations, line employees and supervisors.  The Committee is most effective when it has real authority to effect change.  Some examples of areas the Safety Committee can implement/monitor:

• Safety Orientation program for new hires
• Annual safety training calendar including training priorities
• Accident Investigation (including near-miss investigations)
• Safety Incentive Program
• Safety Audits
• Recommendations made and implemented to improve safety
• Loss Reviews with agent/insurer as needed
• Monitor and review repeat violators
• Return to Work Program
• Drug Testing Program

 5.          JOB DUTY REVIEWS – Perform reviews on all job tasks and establish benchmarks that new hires must meet.  Cost Reduction Technologies (CRT) is an example of a system that can be used to establish these baselines and to test new hires for their ability to meet them.

 6.         DIRECT MEDICAL CARE – Choose a health clinic that specializes in occupational medicine and direct care to the extent possible (standard practice in Iowa, more “teeth” coming in Illinois).  Communicate this choice to supervisors and employees so they know where to go in the event of an injury.  The emergency room should only be used for true emergencies.

 7.          CULTURE OF WELLNESS – Establish a formal Wellness program, which will make a difference in Workers Comp costs over the long run.  Studies are showing an increased correlation between healthy employees and improved Workers Compensation results.

For assistance with implementing any of these strategies, contact our sister company:

• Remain alert at all times and watch out for animals.
• Slow down if you see an animal up ahead, as they are generally unpredictable. Sound your horn with a long blast to scare them away.
• Use your high beams at night to see animals easier.
• Slow down on blind curve areas of the roadway.
• Watch your speed, especially during dusk and at night.
• Have your vehicle’s brakes and tires checked regularly to assure that they are in safe working order.
• Slow down at designated animal crossing areas marked by road signs. These signs indicate that the area has a lot of animal traffic and an increased potential for accidents.
• Watch out for movement and shiny eyes on the roadsides. Slow down if you see anything suspicious.
• If you see an animal in front of you, do not swerve because it may cause you to hit another vehicle, side rail or lose control altogether. BRAKE!
• Always wear a seat belt; it’s your best safety defense. 

Did you know…?

Animal/vehicle collisions are most common between October and December when animals are migrating to other habitats for the wither to find food and breed.  Keep an extra eye out for shiny eyes on the roadways during these autumn and winter months.

 In the Event You Hit an Animal:

• Pull off to the side of the road and call the State Patrol or local police department.
• Do not attempt to move the animal if it is lying in the middle of the road.
• Do not leave your vehicle to check on an injured animal, as it may still be alive and potentially dangerous to you.

• Call your Automobile Insurance agent to report the accident.

Computer Fraud coverage is exactly what the name implies – it reimburses the policyholder when a criminal uses a computer to directly access an account that they are not authorized to access and the criminal fraudulently causes money to be transferred out of the policyholder’s account.  A related exposure, Wire Transfer Fraud can be less high tech, but just as dangerous.

Funds Transfer Fraud coverage reimburses the policyholder when a criminal uses a means of communication other than direct computer instruction such as fax, phone, written or even an e-mail to cause the funds to be fraudulently transferred out of the policyholder’s account. 

Two effective Risk Management techniques are to use a dedicated computer that is only connected to the internet during internet banking transactions, and to have detailed instructions and procedures with your bank before transfers can be made.

Cyber Liability is an exposure that didn’t exist a decade ago.  In today’s world, we must protect the integrity of our computer systems and the data we gather from many sources. 

   Examples of the exposures include:

1)                 Failure to protect personal, private information stored in your databases

2)               Hacked or infected computer systems being shut down

3)               Business interruption and loss of income due to a hacked or virus-infected system

4)               Cost to notify third parties if there has been a breach, even if you do not know if their information has been compromised

5)                Liability for inadvertently transmitting a virus to another computer

6)               Lost or stolen laptops, flash drives or smart phones

The standard risk management practice is to have robust and up-to-date network security including virus, spam and spyware software as well as policies and procedures geared toward protecting your systems.  Unfortunately, studies have proved that over 50% of compromised systems have had up-to-date network security in place. 

Criminals are constantly finding ways around risk management techniques.  The best way to truly transfer these risks is to consider specialized Cyber Liability coverage that covers the exposures mentioned above, both in terms of liability to third parties and costs to you if your systems are compromised and need to be repaired or rebuilt.

Due to the complexity and the relative newness of this exposure, we cannot ballpark terms or pricing.  The only way to obtain meaningful proposals is to complete an application and allow us to search the marketplace on your behalf.  Because no two policies are alike, all options must be carefully analyzed in light of your needs.  We are anxious to assist you in assessing your risk and reviewing the options to protect you.

Changes include:    

• Reduction of the Medical Fee Schedule rates by 30%
• Tightening of guidelines for permanency ratings
• Reducing compensation in select areas (Carpal Tunnel, wage differential)
• Requiring arbitrators to use AMA guidelines when making rulings and requiring them to provide justification for their rulings.

• Allowing an employer to utilize a Preferred Provider Program (PPP) approved by the Department of Insurance to provide Workers Comp medical services and requires an employee to use providers that are part of the network unless they opt out in writing.  (see attached from the Independent Insurance Agents of Illinois website)

We believe these PPPs will give you much more control over claims and their costs.  For now, the industry is waiting for the Illinois Department of Insurance to clarify exactly how these programs will work.  We are watching very closely.  As soon as there is more clarity we will provide guidance to you so you can take full advantage of the new tools HB1698 has made available to you.  In the meantime, if you have questions, please feel free to call our claim specialist, Diane Mangan or your Risk Manager.

Aeration:

• Aerate your lawn with a plug or deep-time aerator. 
• A common misconception is that aeration itself helps relieve the compaction and allows oxygen to permeate down to plant roots.
• An application of ¼ to ¾ inch of compost is recommended after aeration.  This will help fill the aeration holes with organic matter to amend the soil.
• Eventually the void created by the soil plug will fill in.
• To give a lasting impact on the health of your lawn, fill the plugs with good quality compost and reseed to get the greatest benefit from core aeration.

Spread the compost:

• Compost may be spread onto bare ground or existing lawns in a number of ways, depending on the size of the project and do-it-yourself ability.
• It can be blown onto the lawn, or applied with a skid loader, wheel barrow and shovel, manure spreader or lawn fertilizer spreader.
• A fertilizer spreader works well to apply a thick layer of high quality fine-graded compost to an existing lawn.