Did you know that if one of your employees or volunteers is involved in an accident while driving their own vehicle on business for your nonprofit, their personal auto insurance is the primary coverage? But what if their coverage isn’t sufficient to cover the incident or their insurance company denies the claim? And what if they have let their personal auto insurance lapse (crazy I know, but it happens)? Your organization can still be held liable!

Protect your nonprofit with Non-Owned/Hired Auto coverage, which will respond if you find
yourself in such a situation. This type of insurance is one of the most valuable and misunderstood coverages. Contact your insurance broker for more information on this is relatively inexpensive, but essential coverage.

Your driving policies should address driving personal vehicles on agency business and should state that you require employees/volunteers to provide you with a copy of their personal lines policy (the page that shows coverage limits, policy number and policy period). Have a procedure in place to track these coverages annually so you don’t have to rely on your employee/volunteers to give you updated documentation when their policy renews.

A tracking spreadsheet (which includes language you can use in an email reminder or memo
to individuals) and other fleet safety program resources are located on our secure website.

And be sure to report any non-owned auto losses immediately! You never know when what you think is a little “fender bender” can turn into a larger claim with soft tissue injuries.

IS YOUR POLICY CURRENT?

It is very important to advise your insurance broker of changes in your operations. For example, have you added new/removed old vehicles? Maybe you recently added a new service offering for your clients? Perhaps you purchased some expensive new equipment? Or you have just moved your offices to a larger space. Don’t wait until your policy renews. Protect yourself and contact your broker immediately anytime you have a change that could affect your policy and related coverage.

Then we look at the world where there was nearly five times more cat events than the same period for the past decade!!
The March earthquake in Japan; the worst thunderstorm season in over 50 years; earthquakes, floods and even heat and fire losses (both can become a Catastrophe loss). Climatic variability is the term tbeing used to describe the increasing number and strength of storms. We see storms which are stronger, last longer on the ground and that are moving into areas not normally affected by tornadoes for example.
Since reinsurance is a world-wide industry and capacity/pricing is determined by past losses, future capacity and future loss projections (the companies that do the projections are painting a bleak picture – but their projections are just that, projections but the market has tightgened for 2012 based on 2011 and the projections.
The law of supply and demand does work and the world wide losses took down reinsurers reserves and capacity and now the smae converage is substantially more expensive going forward. Also, do not over-look the world wide financial problems – Greece, Spain, and much of Europe facing serious problems and then our own U S financial and political issues.
This year we are speinding more than $0.20 cents of every premium dollar for Cat reinsurance – the cost for 2012 will be higher. Our Cat program has responded well for 2011 – but we are like some of your insureds who had multiple loss dates and thus mutliple deductibles during the year.
On a positive note: October and November were Very Good months and thus far, December is looking good.

At Cashiers Insurance Agency, we are committed to protecting your privacy as a visitor to this website and as our customer. To our visitors and to our customers, we offer this pledge:
Certain information you may provide to us is confidential in nature, and we have adopted a formal privacy policy to explain the limited instances when, and with whom, information may be shared. Information you provide us, that is not generally available to the public, will be kept confidential and will not be shared with other persons or organizations without your consent.
An exception to this is the sharing of information with an insurance company for the purpose of placing, servicing or updating your insurance policy(s). We make no representation to you regarding the privacy policy of the insurance company, which may differ from ours.
The insurance companies we represent are required, under the Gramm-Leach-Bliley Act, to adopt their own, formal privacy policy and to disclose that policy to you.
You may browse our web site anonymously and view information about insurance issues and products. Information about anonymous browsing does not identify you personally and may be used for analytical purposes to help improve our web site and services.
Information that you save or submit through one of our online forms or Wizards is protected using Secure Sockets Layer (SSL) technology. This prevents unauthorized parties from accessing your private information during a secure web session.
We reserve the right to change this Privacy Policy without providing you with advance notice of our intent to make the changes.
If you have any questions about our privacy policy, please feel free to contact us at:
Cashiers Insurance Agency, Inc.
PO Box 240
Cashiers, NC 28717
828-743-2209
michael@ciaofwnc.com

Some people believe that it doesn’t really matter where they buy their insurance. But, this misconception could be costing them money, service and protection. Buying insurance is not like buying bread or milk. Insurance is an important safety net for your family, your home, your car or your business. Do not treat the purchase lightly.

There is a difference in where you purchase your insurance protection. Many people do not realize there are three sources for insurance:

• Captive Agents, who can sell you the insurance of only one company.
• Telephone Representatives or Direct Writers, who can offer you the insurance of one company, and can only do so over the telephone.
• Independent Insurance Agents, who represent an average of eight insurance companies, and research with these firms to find you the best combination of price, coverage and service.

Your Independent Insurance Agent

• Is a licensed professional with strong customer and community ties.
• Gives you excellent service and competitive prices because your agent can access the insurance coverage from more than one company.
• Unlike other agents, is not beholden to any one company. Thus, you do not need to change agencies as your insurance and service needs change.
• Assists you when you have a claim.
• Is your consultant, working with you as you determine your needs.
• Offers you a choice of insurance plans and programs.
• Is a value hunter who looks after your pocketbook in finding the best combination of price, coverage and service.
• Offers one-stop shopping for a full range of insurance products – home, renters, auto, business, life and health.
• Can periodically review your coverage to keep up with your changing insurance needs.
• Treats you like a person, not just another number.

Customer satisfaction is the key to an independent agent’s livelihood. Therefore, serving you is your independent agent’s most-important concern.

Trusted Choice(R) Agents

Trusted Choice(R) insurance agencies offer you a broad selection of insurance policies, companies and financial services, customization of coverage’s for home and business, and advocacy support. These firms are committed to providing customer service designed to help you meet your insurance needs. They benefit from access to many leading insurance companies

Trusted Choice(R) agents stand out because they offer Choice, Customization and Advocacy in insurance and financial services.
The choice is yours.

• Choose your insurance policy
• Compare a variety of companies
• Evaluate financial services offered
• Customize coverage for your home or business
• Assist you when you have a claim

• Senate Bill 740 (Session Law 2009-561) affects the 2008 Mandate for Uninsured and Underinsured Motorists Coverage. It revises one aspect of the previous law and clarifies another. In 2008, a law was passed mandating UM/UIM coverage for certain non-commercial vehicles. (Click here to see a summary explanation of the 2008 changes.) SB 740 revises the previous law to allow policyholders to select UM limits lower than their Bodily Injury and Property Damage Liability limits but no lower than the Financial Responsibility limits of $30k/$60k BI and $25k PD. It also allows policyholders to select lower UIM limits than their Bodily Injury and Property Damage Limits but must be greater than the Financial Responsibility Limits. The UIM limits must be selected at a level higher than the 30/60/25 financial responsibility minimum since there could be no underinsured motorists for a policyholder with minimum bodily injury and property damage limits. Since the previous law exempted certain fleet vehicles, the law was unclear as to when the count to determine fleet eligibility should be taken. In other words, if the policy had five or more vehicles at policy inception but was reduced to four vehicles during the term of the policy, did the policy lose its exemption from the UM/UIM mandate? SB 740 clarifies that the count for fleet eligibility will be made at policy inception or renewal date. Once eligibility is established, it remains in place for the balance of the policy period. (Effective for policy issued or renewed on or after February 1, 2010) o The Selection/Rejection form was not reinstated.
• Senate Bill 660 (Session Law 2009-440) required that diminished value become a part of the property damage liability claims settlement process. If the insurer has admitted liability for the claimed property damage and yet the insurer and claimant cannot agree on the fair market value of the damaged vehicle immediately after the accident, this bill establishes a resolution process available to the dispute. If the difference in the insurer’s and claimant’s estimate of the diminished fair market value is greater than $2,000 or 25% of the fair market retail value of the damaged auto prior to the loss as determined by the lesser of the latest edition of the NADA Pricing Guide Book or other publication approved by the Commissioner of Insurance, either party upon written demand can request arbitration. (Effective for policy issued or renewed on or after October 1, 2009) o Each party will within 20 days of written demand select a “competent and disinterested appraiser”.
  • If the appraisers cannot agree as to the fair market value of the loss within 15 days, they shall select an umpire within 15 days.
  • If the appraiser cannot agree on an umpire, either party can request a magistrate of the county where the damaged auto is registered or the county where the accident occurred to select an umpire. The umpire shall prepare a report of the amount of loss and file with the insurer and claimant.
  • Agreement of the two appraisers or the report of the umpire shall establish the value of the damage. The umpire’s report of loss shall not be higher or lower than the appraisals made by the appraisers.
  • The insurer and claimant shall have 15 days after the filing of the report to reject the report and notify the other party. After 15 days, the report is binding. (The law does not specify what happens after rejection of the report.)
  • The claimant and insurer shall each bear the cost of their respective appraiser and the cost of the umpire equally.
  • The law does describe the qualifications for an “appraiser” and an “umpire”.
• House Bill 1185 (Session Law 2009-369) deals with the conditions under which a driver’s license can be restored after revocation for habitual impaired driving. (Effective December 1, 2009)
• House Bill 9 (Session Law 2009-135) sets out a prohibition for the sending and receiving of text messages and emails while operating a motor vehicle on public streets or roadways. Violation of the law is a Class 2 misdemeanor and a fine of not less than $100. Further infractions will be subject to additional fines of $100 and cost of court. (Effective December 1, 2009) o Such conviction or convictions shall not be subject to driver’s license points or insurance points.
  • Failure to comply with the law shall not constitute negligence per se or contributory negligence per se by the operator in civil actions for damages arising out of the operation, ownership, or maintenance of a vehicle.
• House Bill 1165 (Session Law 2009-171) reaffirms the Standard Fire Policy as the foundation of all property insurance policies issued in North Carolina except for automobile physical damage coverages and marine or inland marine coverages. (Effective for fire insurance policies issued or renewed on or after January 1, 2010)
• House Bill 1159 (Session Law 2009-383) provides for the electronic filing of licensing documents and fees at the discretion of the Commissioner of Insurance. Additionally, it clarifies that any business entity selling, soliciting, or negotiating insurance shall be licensed. (Effective October 1, 2009)
• House Bill 1161 (Session Law 2009-172) is a Department of Insurance bill clarifying its authority over the matters listed below. (Effective October 1, 2009) o Reinsurance intermediaries for the production of non-privileged documents with respect to reinsurance transactions
  • Clarification of authority for rehabilitators and liquidators
  • A TPA or any related parts may not serve as a trustee of a self-insurer nor may they make contributions to the surplus of a self-insurer
  • Clarifies the requirements for audits and auditors of domestic, foreign and alien insurers
  • Clarifies licensure requirements for foreign or alien insurers
• House Bill 1313 (Session Law 2009-565) establishes the requirements for licensure and regulation of public adjusters. (Effective July 1, 2010)

E. Stuart Powell, Jr., CPCU, CIC, CLU, ChFC, ARM, AMIM, AAI, ARe, CRIS Vice President of Insurance Operations and Technical Affairs

]]> http://ciaofwnc.com/uncategorized/summary-of-recently-enacted-laws-affecting-insurance/feed 0 http://ciaofwnc.com/uncategorized/implementation-of-house-bill-1305 http://ciaofwnc.com/uncategorized/implementation-of-house-bill-1305#comments Wed, 23 Jun 2010 15:48:40 +0000 admin http://ciaofwnc.com/?p=160 Now that House Bill 1305 has been ratified and enacted into law, implementation begins. There are basically three effective dates specified in the law. The loss mitigation credits and the installment payment plan required by the law are due to be implemented by May 1, 2010. The 1% Named Storm Deductible provisions will be implemented by a filing and the necessary approval by the Commissioner. Everything else became effective upon the signing of the bill by the Governor, which occurred on August 26, 2009.

The two items of House Bill 1305 that are effective immediately, and will impact agents, are the reduction in the Coverage A limit and the reduction in the personal property limits on residential policies. Prior to House Bill 1305 the Beach Plan had a Coverage A limit of $1.0 million for Homeowners and the 50% of Coverage A applied to personal property unless the Personal Property Replacement Cost endorsement was added in which case the Coverage C limit was 70%. House Bill 1305 reduces the maximum limit for Coverage A to $750,000 and reduces the personal property limit to 40%. (For residential properties with values in excess of $750,000, excess insurance will have to be purchased.) The effect of the new 40% limit on personal property is to eliminate the Personal Property Replacement Cost endorsement and restrict personal property to an ACV valuation.

Therefore, effective August 26 these new limits apply on all new and renewal policies. The Beach Plan obviously has reprogramming issues that may delay the production of renewals dated August 26, 2009 and later. Patience may be necessary during this rapid transition to new requirements.

Once one steps back from the specifics of the changes and looks at the overall significance of House Bill 1305, some reflections emerge. House Bill 1305 reaffirms the proposition that the “Coastal Property Insurance Pool” (new name for the Beach Plan) is a “market of last resort.” While the law has never stated clearly what that means, it certainly does not mean a “market of first resort”, and that is what the Beach Plan had evolved into over that last ten to fifteen years. The market of first resort should be the voluntary market. It has become obvious to many through this recent legislative process that reviving the voluntary market in Coastal North Carolina is essential to an overall healthy residential property insurance market. If the Beach Plan continues to provide benefits that are competitive with the voluntary market, then depopulating the Beach Plan will be a difficult, if not impossible, task.

For further information, contact Stuart Powell at spowell@iianc.com.
Stuart Powell, CPCU, CIC, CLU, ARM, ChFC, AMIM, AAI, ARe, CRIS is IIANC’s Vice President of Insurance Operations & Technical Affairs.

]]> http://ciaofwnc.com/uncategorized/implementation-of-house-bill-1305/feed 0 http://ciaofwnc.com/uncategorized/nc-homeowners-crisis http://ciaofwnc.com/uncategorized/nc-homeowners-crisis#comments Mon, 21 Jun 2010 19:32:59 +0000 admin http://ciaofwnc.com/?p=153 Unfortunately, at this time, North Carolina especially Western NC, is in a “Homeowners” crisis and we have no carriers that are willing to insure any home at this point, seasonal or primarily occupied, without also insuring an Auto policy.

Farmers Insurance Company, Encompass and Donegal having completely exited, North Carolina and non-renewing all their homeowner’s policies as well as other carriers are also taking this “knee-jerk” reaction. ACE Insurance Company requires a combined minimum of premium for all of a client’s personal lines policy of $25,000 or more. Chubb Insurance Company and Fireman’s Fund will not write the seasonal/secondary homes without writing the primary home and they will not insure homes in Florida or near the coast.

The other Independent carriers that DO write in North Carolina, most especially seasonal/secondary homes, such as Travelers, Auto-Owners, Kemper, MetLife Auto and Home, have recently established a moratorium on Independent Agents, as outlined above. Allstate has recently announced they will be non-renewing approximately 35,000 mono-line homeowner’s policies in North Carolina effective May 1, 2010.

Our carriers are now requiring agents considering writing a new homeowners policy, to also write a non-property auto policy in conjunction with the new Homeowner’s policy.

At this time, unfortunately, I am not in the position to quote seasonal/secondary homes with my best A, A+ or A++ rated carriers, UNLESS you allow me to quote a couple of your Auto’s.

We do have the availability to write homeowners coverage available through our Excess and Surplus lines carriers, however, their coverage may be abbreviated compared to our standard carriers policy forms, they may not be licensed in North Carolina and will not have an A.M. Best rating of A, A+ OR A++.

We do HAVE a license to quote and write insurance in the following states, so you would not have to tag, title, register the vehicle in N.C. nor have a valid N.C. Drivers license. Florida, Georgia, South Carolina, Tennessee, Alabama, and Virginia.

If you are willing to give me a chance to quote your Auto in conjunction with your homeowner’s coverage, I would be more than happy, as long as the vehicles are tagged/titled in one of the states above.

I would need a copy of the current auto policy with year, make, model, serial numbers, limits/deductible and driver’s license numbers and dates of births for all drivers. Along with a copy of the current Homeowners policy declaration page showing the limes, deductible, location, etc.

Keep in mind, that these changes are not of our own doing, but are a sign of the times, the economic downturn, low returns on investments, higher valued homes having been underinsured with their losses, foreclosed home claims, and the whole multitude of outside factors contributing to where we are today.

If I can answer any questions or be at all of any assistance, please do not hesitate to contact me!

Most Respectfully,
Michael D. Babb-President


]]> http://ciaofwnc.com/uncategorized/nc-homeowners-crisis/feed 0 http://ciaofwnc.com/uncategorized/how-to-winterize-your-home http://ciaofwnc.com/uncategorized/how-to-winterize-your-home#comments Wed, 09 Jun 2010 18:00:05 +0000 admin http://localhost/cashiers/app/?p=95 Just a friendly reminder, you cannot count on continuous electricity during the winter months here in the mountains. If your home will be unoccupied during the winter season for any length of time, I would highly suggest that you winterize your dwelling. Unfortunately, we cannot predict a snowstorm or an ice storm. With little or no warning the power can fail.

When the mercury falls below 20 degrees, accompanied by strong winds, the probability that the pipes will freeze is increased greatly. The result is often ruptured pipes followed by flooding. You can reduce the potential freezing and rupturing of your pipes by taking a few important steps. It all begins with staying alert to the possibility of freezing temperatures, then following the necessary steps:

• Maintain the temperature in your home at 68 or 70 degrees.
• Pipes can be wrapped with insulation that can be purchased at most hardware stores. Installation takes on minutes.
• Pipes under the kitchen sinks are particularly vulnerable. Cabinet doors should be opened to allow heat from the home to enter.
• Shut off the water supply to outside faucets and disconnect hoses.
• All faucets should be checked before you retire for the night. Allow a “trickle” of water to flow from the faucet to reduce freezing.
• Disconnect electrical appliances during power outages to avoid damages from power surges when the power is restored.
• During a power outage, DO NOT open the freezer so the contents will stay frozen longer.
• Shut off the water supply valves to the washing machine when away.
• If you will be away for any length of time, ask a friend or neighbor to check your pipes, and give them a copy of these suggestions.
• Know the location of water valves prior to an emergency. Keep the number of a plumber close at hand in case one must be called. Remember pipes do not necessarily burst the first time they freeze. It can take several instances of freezing and thawing before damage occurs. Should a pipe freeze or burst, follow these steps immediately:
• Shut the water off at the main valve. If the break is in a hot water pipe, the valve on top of the water heater should be closed.
• Should a facet freeze, you can thaw an inside faucet easily with a good hair dryer. Outside faucets, however, usually require both a hair dryer and plenty of hot water.

For your family’s protection, and the protection of others visiting your home, here are some helpful tips on winterizing your home:

• Keep walkways, decks, and steps free of ice and snow. Use kitty litter, sand, or a de-icing substance on iced areas.
• Remove snow build up on your rooftop, to avoid ice and snow damage on the roof and/or the interior of the home.
• Consider an electrician installing, on the roof edge, heating cables to prevent ice barriers from forming, which will allow water to flow freely to the gutter.
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