How the Insurance Agent Saved Christmas!

Every Who down in Whoville liked Christmas a lot,

But the Grinch, who lived just north of downtown, did not.

“I must stop all this nonsense!” the old Grinch declared

And he drew up a plan for his mission with care.

Then he put on his coat and paid a quick call

To his trusted friend agent near Whoville town hall.

“Am I covered,” he asked, “for the use of a sled

And a dog with a sawed-off stick tied to his head?”

“Since it’s not self-propelled,” the insurance man said,

“You have coverage for the use of the dog and the sled.

“Then I’m stealing Christmas!” the Grinch said with a sneer.

“The Whos won’t have new presents to open this year!

But the agent advised him, “That won’t work, you see

Theft of contents is covered by Homeowners form 3.

And your coverage won’t help,” the agent concluded,

“Because harm caused by intentional acts is excluded.”

So, what happened next? Well, in Whoville they say

The Grinch’s small heart grew two sizes that day.

But if you ask the Grinch himself what caused him to bend

He’ll just give you the card of “A Trusted Friend”



Building Credibility Leads To Profitability

You know how you operate but how do people who don’t know you learn that about you.   People need to know, like, and trust you before they will do business with you.  One way you can spread that news is through the proper use of LinkedIn.  There are numerous ways to build credibility on LinkedIn.  You simply need to identify which vehicles will help you build your credibility.  As you do you’ll find that you’re beginning to build brand awareness (know), generating a favorable perception (like), and generating new business (Trust).

 

Social Media Sonar » Blog Archive » Building Credibility on LinkedIn (part 5 of 10).

Big News for Johnson & Hens Agency!

I have great news for our clients and friends!  We are opening a 2nd location at 1136 Central Ave., across from the fairgrounds in Dunkirk. 

While some companies are being forced to lay people off, we have found a way to maintain and improve our local service.  We will open earlier, have some hours on Saturday, and also stay open during the lunch hour. 

How can we do this in spite of the recession?  For almost a decade we have been affiliated with the Northwoods Corp. and many of you have seen their Williamsville address on your policies even though we are in Forestville.  It is through that partnership that we are able to pool our resources with our sister agency and associates at David Glenn to give us the opportunity to expand services. 

Everybody wins!

On Monday November 2nd we open the doors on Central Ave, not at 9:00 but at 8:30AM.  We will be open there Monday – Thursday from 8:30-5:00 and Friday from 8:30-4:30.  Our commitment to Forestville also remains strong.  In fact it is there that we will now have some Saturday hours.  We will be open from 10:00 AM to 2:00 PM on Thursday, Friday, and Saturday.

Our phone number will remain the same (716) 965-2664.  Technology allows your call to be answered in the right place.  So please call if you have questions.  We also will be launching our web site at www.hensinsurance.com.  I hope you will take the time to visit us there and give us your feedback.

Thank you for your loyalty and support.  Together we can and will beat this recession and keep our jobs in New York State! 

Sincerely,

Matt Hens

“A Trusted Friend”

Lock out drunken driving

Having taught defensive driving for several years I am in favor of looking at any opportunity to lessen the toll in dollars, death, and human suffering that is caused by Drunken Driving.  The ignition interlock device seems like an easily implemented program with a great deal of promise.  At this time I am hard pressed to think of a reason why New York should not follow the lead of New Mexico, the first State to implement such a program.  A 65% drop in recidivism is very significant.

Lock out drunken driving — baltimoresun.com.

The Stakes Are High So….

The stakes are high so in my opinion great care needs to be taken.  The financial and social impact on the American people  as a whole and on the individual level will be very significant when health care reform action is taken.

High-Stakes

We can debate the pluses and minuses of a single payer government option or a less drastic modification of the current system.  We can argue that people should not be forced to pay for abortions that they consider to be murder, or that women cannot be denied coverage for a medical procedure that they should have the right to choose.  In fact there are a great many areas that we as a nation are sharply divided on and a great many that have hardly been considered at all that are also quite significant.  But at the end of the day we are left with this one undeniable fact.

We will live with the fallout from this battle for many decades to come.

Frankly, I am apprehensive that in the rush to get this thing done we will find that there will be a great many things that congress will wish they had thought through before they voted.   I hope I am wrong.

Here is an overview of the current state of the process as of today from the IIABNY Insider newsletter.

Late October Health Care Reform Debate Looms in Congress after Committee Vote
After months of negotiations outside their respective chambers, the House and Senate are each poised to begin floor debate on health care reform over the next few weeks. In the Senate, debate is expected to begin as early as next week. Democratic leadership is also working to merge bills from the Health, Education, Labor and Pensions Committee and Finance Committee into one.

Yesterday, after the Finance Committee concluded two weeks of debate on more than 130 amendments, its bill was approved 14 to 9 with the panel’s 13 Democrats and Republican Sen. Olympia Snowe of Maine voting affirmatively. The committee had postponed a vote on final passage until a new cost estimate and analysis was available from the Congressional Budget Office. Last week, CBO announced that the bill, as amended, is estimated to cost $829 billion over 10 years.

Meanwhile, Senate Majority Leader Harry Reid (D-Nev.) is working with Senators Max Baucus (D-Mont.), Chris Dodd (D-Conn.) and administration officials to reach a compromise between the Finance and HELP Committee bills. With Senate parliamentary rules giving the minority party various avenues to prolong debate, once the Finance and HELP bills are merged, the health care reform legislation could very well be on the floor for three to four weeks.

On the south side of the Capitol, House Democratic leadership continues to work on a compromise that appeases enough progressive and moderate Democrats to push their bill over the finish line. The main hurdles continue to be what type of public option to include and choosing provisions to cut in order to trim the price tag from $1 trillion to the White House preferred $900 billion. The parliamentary process in the House is the polar opposite of the Senate, with the majority party controlling the entire process. Once the House bill hits the floor, as early as late this week, floor debate will likely only take one or two days, depending on how many amendments are ruled in order by the Rules Committee.

How to Save Billions in the Health Care Arena

Tort reform is perhaps not gettting the attention it deserves in the debate over health care as pointed out by this article from “Insurance Journal”

Medical Lawsuit Curbs Would Save Billions, Congressional Study Finds

Limits on medical malpractice lawsuits would lead doctors to order up fewer unneeded tests and save taxpayers billions more than previously thought, budget umpires for Congress said in a reversal that puts the issue back in the middle of the health care debate.

The latest analysis from the nonpartisan Congressional Budget Office estimates that government health care programs could save $41 billion over ten years if nationwide limits on jury awards for pain and suffering and other similar curbs were enacted. Those savings are nearly ten times greater than CBO estimated just last year.

“Recent research has provided additional evidence that lowering the cost of medical malpractice tends to reduce the use of health care services,” CBO Director Douglas Elmendorf wrote lawmakers, explaining the agency’s shift. Previously, CBO had ruled that any savings would be limited to lower malpractice insurance premiums for doctors, saying there wasn’t clear evidence physicians would also change their approach to treatment.

Elmendorf essentially acknowledged what doctors have been arguing for years: fear of being sued leads them to practice defensive medicine. Some doctors will order a $1,500 MRI for a patient with back pain instead of a simple, $250 X-ray, just to cover themselves against the unlikely chance they’ll be accused later of having missed a cancerous tumor.

Republicans immediately called for liability limits to be incorporated in the health care overhaul legislation advancing in Congress. The Senate Finance Committee bill now gives a nod of recognition to doctors’ concerns, but little more. Heeding a call from President Barack Obama, the legislation calls for promoting state experiments with programs to resolve cases before they go to court.

“The more federal health care programs spend on unnecessary tests, the less money is available for necessary patient care,” said Sen. Charles Grassley of Iowa, the ranking Republican on the Finance Committee. “Cutting medical liability costs would help preserve patients’ access to care. “

Tens of billions of dollars in savings is “not chump change,” added Grassley. “It’s a no-brainer to include tort reform in any health care legislation.”

However, Republicans were unable to pass malpractice limits when they controlled Congress and the White House, and it’s unlikely that Democrats would do so now.

For one thing, trial lawyers who file malpractice lawsuits have traditionally been heavy contributors to Democratic politicians.

But also, patient advocates argue that fixed limits on jury awards as in California and some states are unfair to those who have suffered the most harm because of a doctor’s negligence. A patient who was given the wrong drug and had to spend several days in the hospital recovering from a bad reaction would likely be able to collect adequate compensation. But a family whose youngster was left brain damaged by an anesthesiologist’s mistake probably would not be able to offset all the costs of lifelong care.

Obama has tried to straddle the argument, siding with the doctors on defensive medicine and agreeing with the lawyers who say limits on jury awards are the wrong remedy. He wants to promote alternatives to litigation; studies have shown anger over cover-ups by doctors is a principal reason that families sue.

Trial lawyers said the projected malpractice savings have to be viewed in the context of the $2.5 trillion a year the U.S. spends on health care.

“Medical malpractice claims have almost no effect on overall health care spending,” said Anthony Tarricone, president of American Association for Justice, which lobbies for lawyers. “The vast majority of empirical evidence suggests that there are only minuscule savings to be found in reforming our nations civil justice system.”

But the CBO report means the malpractice issue will stay alive as the health care debate in Congress builds to a climax this year. The budget scorekeepers estimated the total effect of malpractice curbs could reduce the federal deficit by $54 billion over 10 years, once $13 billion in new tax revenues from economic ripple effects are taken into account.

Even in the health care debate, that’s real money.

Medical Lawsuit Curbs Would Save Billions, Congressional Study Finds.

Mutual Insurers Positioned for Growth But Some May Need Partners

The world’s mutual insurance companies are well placed to continue to grow market share in the wake of the credit crisis, but they also face a vast range of challenges, according to new research.

A report by credit ratings agency A.M. Best Co. shows that mutuals currently make up 26.5 percent of the world’s insurance premiums, compared to 25.2 percent a year earlier. They could increase their presence further, the study suggests, because they are perceived to be relatively safe, can offer more competitive prices to well-defined affinity groups, and do not face the same pressures in terms of returns to shareholders that stock companies face.

The research report, “Mutuals under the microscope as market share grows,” was launched by A.M. Best at the International Cooperative and Mutual Insurance Federation (ICMIF) Biennial Conference in Toronto.

Speaking at the conference, Nick Charteris-Black, director of Global Financial Services at A.M. Best, placed the future for mutuals in context.

“Mutuals are being presented with opportunities to exploit their values and build on customer loyalty during the continued economic uncertainty,” he said. “However, they do also face a host of challenges and lack the financial flexibility of stock companies. For some mutuals, the future is uncertain.”

The report also predicts that some mutuals will be forced to merge and create partnerships in order to survive aggressive competition and regulatory pressures.

Yvette Essen, report author and Head of Market Analysis, Global Financial Services at A.M. Best, said, “These challenges are expected to drive consolidation and partnerships around the world, particularly among smaller mutuals looking to share central resources. While the bigger mutuals may have the budgets and time to promote their values, the smaller, regional players may simply not be able to survive.”

The report is based on data from ICMIF and analysis of mutuals within the Group of Seven (G7) countries and in a number of other key countries.

The report cites the introduction of the Solvency II directive as one of the factors likely to drive consolidation among mutuals.

“Smaller mutuals will struggle to cope with the increased workload and capital requirements,” Esen said. “The challenge associated with complying with Solvency II in some cases represents an even greater hurdle than the current recession.”

see original post at http://www.insurancejournal.com/news/national/2009/10/06/104322.htm

Federal Flood Insurance Program Granted Temporary Extension

The U.S. Senate passed a temporary extension of the National Flood Insurance Program (NFIP) and President Barack Obama signed the legislation into law just few hours before the program was set to expire yesterday.

The NFIP extension was passed as a Continuing Resolution (CR) by the Senate as part of the House-Senate Conference Report on H.R. 2918, the “Legislative Branch Appropriations Act 2010.” The extension will expire until Oct. 31, 2009.

“It is alarming that the NFIP, which was set to expire at midnight yesterday, came within a few hours of leaving millions of homeowners and small businesses unprotected,” says Robert Rusbuldt, Big “I” president and CEO. “Had the program been allowed to expire, it would have resulted in no more new or renewed flood insurance policies and millions of consumers would have been left without flood insurance coverage.”

Insurers were also pleased with the passage of the NFIP extension, noting that allowing the program to expire would have very negative consequences for policyholders and also for the nation’s economy. Most home buyers use federally backed mortgages to purchase property, and such mortgages are prohibited by law for homes in floodplains without flood insurance.

It is crucial to home buyers and our economy at large to ensure the NFIP remains in business, said David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI).

While agents and insurers alike thanked Congress and the president for passing another short-term extension, industry groups say long-term reforms to the NFIP are a must.

“We appreciate last night’s action by Congress and President Obama for another short-term extension but feel that a long term extension coupled with reform of the NFIP are necessary,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs. “In particular, we strongly support an increase in maximum coverage limits and the addition of optional business interruption insurance.

Agents say homeowners and businesses need both higher coverage limits and business interruption insurance in order to properly insure their homes and businesses. “We hope that as Congress considers a long term reauthorization soon, they will include these reforms,” Symington added.

Insurers represented by PCI say that while long-term reforms to the NFIP are needed, adding coverage such as windstorm insurance, is not necessary.

“We will work closely with the House and Senate to advocate a long-term extension that ensures the program’s fiscal soundness and does not needlessly expand its scope into other areas, such as windstorm insurance, where coverage is already available through private industry or state programs,” Sampson said.

Another short-term extension was signed by President Obama just hours before the program was set to expire earlier this year. In the 110th Congress, the Flood Insurance Reform and Modernization (FIRM) Act of 2007 made progress in the House and Senate. The legislation would have extended the program for five years and made significant and needed reforms to help put the program on sound financial footing. This summer, similar legislation was introduced in the House of Representatives.

Sources: IIABA, PCI

http://www.claimsjournal.com/news/national/2009/10/01/104248.htm

Tornado Threat Increases as Gulf Hurricanes Get Larger

September 8, 2009

Tornadoes that occur from hurricanes moving inland from the Gulf Coast are increasing in frequency, according to researchers at the Georgia Institute of Technology. This increase seems to reflect the increase in size and frequency among large hurricanes that make landfall from the Gulf of Mexico.

The findings can be found in Geophysical Research Letters online and in the Sept. 3, 2009 issue.

“As the size of landfalling hurricanes from the Gulf of Mexico increases, we’re seeing more tornadoes than we did in the past that can occur up to two days and several hundred miles inland from the landfall location,” said James Belanger, doctoral student in the School of Earth and Atmospheric Sciences at Georgia Tech and lead author of the paper.

Currently, it’s well known that when hurricanes hit land, there’s a risk that tornadoes may form in the area. Until now, no one has quantified that risk because observations of tornadoes were too sporadic prior to the installation of the NEXRAD Doppler Radar Network in 1995. Belanger along with co-authors Judith Curry, professor and chair of the School of Earth and Atmospheric Sciences at Tech and research scientist Carlos Hoyos, decided to see if they could create a model using the more reliable tornado record that’s existed since 1995.

The model that they developed for hurricane-induced tornadoes uses four factors that serve as good predictors of tornado activity: size, intensity, track direction and whether there’s a strong gradient of moisture at midlevels in the storm’s environment.

“The size of a tropical cyclone basically sets the domain over which tornadoes can form. So a larger storm that has more exposure over land has a higher propensity for producing tornadoes than a smaller one, on average,” said Belanger.

The team looked at 127 tropical cyclones from 1948 up to the 2008 hurricane season and went further back to 1920 modifying their model to account for the type of data collected at that time. They found that since 1995 there has been a 35 percent percent increase in the size of tropical cyclones from the Gulf compared to the previous active period of storms from 1948-1964, which has lead to a doubling in the number of tornadoes produced per storm. The number of hurricane-induced tornadoes during the 2004 and 2005 hurricane seasons is unprecedented in the historical record since 1920, according to the model.

“The beauty of the model is that not only can we use it to reconstruct the observational record, but we can also use it as a forecasting tool,” said Belanger.

To test how well it predicted the number of tornadoes associated with a given hurricane, they input the intensity of the storm at landfall, it’s size, track and moisture at mid-levels, and were able to generate a forecast of how many tornadoes formed from the hurricane. They found that for Hurricane Ike in 2008, their model predicted exactly the number of tornadoes that occurred, 33. For Hurricane Katrina in 2005, the model predicted 56 tornadoes, and 58 were observed.

The team’s next steps are to take a look to see how hurricane size, not just intensity (as indicated by the Safir-Simpson scale), affects the damage experienced by residents.

“Storm surge, rain and flooding are all connected to the size of the storm,” said Curry. “Yet, size is an underappreciated factor associated with damage from hurricanes. So its important to develop a better understanding of what controls hurricane size and how size influences hurricane damage. The great damage in Galveston from Hurricane Ike in 2008 was inconsistent with Category 2 wind speeds at landfall, but it was the large size that caused the big storm surge that did most of the damage.”

Source: Newswise

Tornado Threat Increases as Gulf Hurricanes Get Larger.

New York Allows Lump Sum Workers’ Comp Payments

New Yorkers who suffer a permanent partial disability can be paid workers’ compensation benefits in a single, lump sum if they so choose, under a new law signed by Gov. David Paterson.

The law changes the payment structure from incremental payments. Under the law change, a worker can request the lump sum payment method if he or she chooses.

The law change stems from a 2007 court battle over the decision by the Workers’ Compensation Board to pay loss of use awards to an injured worker as one lump sum, rather than periodically over time.

That decision was ultimately overturned by The New York Court of Appeals, which said the legislature must authorize any changes to the payment schedule.

The lump sum payments would be made without commutation for their value.

The law went into effect immediately.

original post at:  New York Allows Lump Sum Workers’ Comp Payments.