Wednesday, November 29, 2006

Safeco Ins: Give Credit When Credit is Due

I had originally plan on this post slamming Safeco Insurance for their mishandling of a policy in my office. Safeco, like most insurance companies want their agents to quote and issue policies online. Online quote and issuance of policies is quicker, cheaper, and requires less underwriting review. If the client fits through all of the online underwriting guidelines, then the policy is quoted and issued. As insurance agencies have become more technologically savvy, agents have generally embraced this concept. It allows us to serve the client faster, therefore better.

Recently we quoted and issued a policy through Safeco. A couple of weeks later our regional office in Indianapolis notified us that the policy in question would be cancelled in 60 days. When we question the reason for cancellation, we were told that there was a programming error and this policy should have never been approved or allowed to issue, therefore Safeco was canceling. We asked another underwriter for help and received the same answer.

My next call was to Mr. Mike Hughes, the Executive Vice President for Insurance Operations. Although after several calls I never did get to speak directly to Mr. Hughes, my message was heard. The underwriting department has agreed that if we (agents) are to use their quote and issue systems, then Safeco must stand behind the information we are given. If the system produces a quote and issues the policy, then Safeco must honor it.

Today I was notified by the regional office in Indianapolis that Safeco will reinstate this policy. Congratulations to Safeco for doing the right thing.

Monday, November 27, 2006

Real Trees; The Tradition Continues...


Before I get back to insurance issues (starting Nov. 28th) the main topic of this blog, I thought I would share a photo of at least part of the family, my wife, daughter and our two dogs, during our annual Christmas tree cutting. For 25 of the last 26 years we have cut our tree at the same Christmas tree farm about 10 miles from our home. And since this is a "family" event, we must always include the dogs in our outing. My son is taking the picture and I am cutting the tree (a view you probably would not want to see). The only year we did not cut our own tree was in 2003, this first year both kids were gone to school. My wife purchased a fake tree, over my protest, and when the kids came home, they revolted, so we are back to real trees.


For any of the environmentally inclined, this is at a Christmas tree farm. Trees are planted on a farm around grain fields, with the purpose of creating a wind block and generating additional income for the farmer.





Friday, November 24, 2006

Guest Author Coming

On December 1, 2006 I have arranaged for Bill Folkerts, a representative of the Auto-Owners Insurance Company, to be a guest author on this blog. The topic and content will be his to choose. Check back to see what Bill has to say.

Wednesday, November 22, 2006

What am I Thankful For?


I have been so blessed in life, family and health! More blessed than I deserve.


Just thought I show you what I am most thankful for; my two kids JB & Lucy!


Have a Happy Thanksgiving!


Tuesday, November 21, 2006

Registering my Blog

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Technorati Profile

Auto Safety Ratings

While I am on the topic of teenage driving safety, let’s consider the types of autos we let our kids drive. If we are concerned about safety, why would we let our kids drive a Chevy Camaro Z24 or a Ford Mustang 5.0? If you put young drivers into a high performance car they will drive it like a sports car. It is what you would expect; you and I would drive it the same way.

As parents we can use common sense and put our kids into cars that have high safety ratings. How do you know what a car’s safety ratings are? Go to The Insurance Institute for Highway Safety website at http://www.iihs.org/; click the link for Vehicle Ratings; and select the vehicle you what to check out. For example, I compared a Dodge Neon, a car that is popular with young drivers with a Honda Civic. For model years 2000 – 2005 the Neon gets a “Marginal” rating; for years prior to 2000 the Neon receives a “Poor” rating. A Honda Civic gets an “Acceptable” rating for 1996 – 2000 models and a “Good” rating for 2001 and newer models. Which car makes the most sense, safety wise?

Take a moment, look at the safety rating of your own auto… you might be surprised.

Monday, November 20, 2006

Teenage Drivers: A Parents Nightmare


A drivers license is one of the first signs that your son or daugther is moving from childhood towards adulthood (Photo Copyright of Mike Rizzo, 2006) and the responsibilities that go with it. Turning your 16 year old loose with a car on Friday night is one of the scariest things a parent can do. Auto accidents can alter or at worst, end someone’s life. As a parent you want to protect your child the best you can, but you know that driving is a right of passage towards adulthood. So what can you do to help keep your young driver from being involved in an accident?
First, talk to your teenager; explain the risk and responsibilities of driving. They will be in control of a machine that could hurt, maim, of kill themselves or someone else. They need to understand this. Show your teenager photos of car crashes or better yet, take your teenager to the local junk yard or body shop so they can see a wrecked car up close. Seeing a wrecked car in person makes an impact. Ask your insurance agent for additional safe driving tips. Some insurance companies have developed safe driving videos for teen drivers to watch. You can also check with your local library.
Even though many states have special driving laws for teenagers, set your own “family” rules for teen drivers. Rules such as:

· No late night driving for the first 6 month after being licensed (length to be determined)
· No cell phone use while driving
· No more than one other passenger in the car at any one time
· Know who the passenger will be
· Radio volume must be set at a normal level
· No eating while driving
· A moving traffic violation results in the loss of driving privileges; a minimum of 90 days
· A predetermined time to return home… yes a curfew
For more information see: http://www.safeco.com/safeco/for_you_or_your_family/consumer_Tips/teen.asp

You may have other family rules, but don't hesitate, talk to your teenage driver before it is too late.

Saturday, November 18, 2006

Insurance Blogs that Bug Me

How many insurance blogs have you looked at? Not too many I bet. For insurance to be such a large part of a family's or businesses financial security and budgets, there are surprisingly few good insurance blogs. Too many insurance blogs seemed focused on trying to quote your insurance rather than foster dialog about insurance issues. A few blogs I have found that did not bombard me with links to quote my insurance seemed a little to technical for the average person.

Granted insurance may not be as exciting as blogging about the Ohio State - Michigan game or maybe the Alabama-Auburn game depending where you are, but there should be enough interest in what coverages you (or a business) may need, tips on buying quality insurance at a fair price, and even on how to read and understand the insurance contract. All issues that we will get into as this blog matures.

Friday, November 17, 2006

GEICO: Insurance Is Not A Commodity

Wikipedia defines commodity as "a term with distinct meanings in business and in Marxian political economy. For the former, it is a largely homogeneous product, whereas for the latter, it refers generically to wares offered for exchange." A homogeneous product, according to The Random House Dictionary means "composed of parts all of the same kind."

GEICO wants the insurance buying public to believe that all insurance is the same. That what you receive from one company is the same as another. However, each insurance company offers its own unique options, pricing, and coverages for the customer to choose from. Insurance is not the same from every company.

GEICO and similar companies do not value the advice and counsel of an insurance agent. They assume that all situation faced by their policyholders can be handled online or by phone. Face to face relationships are not important. GEICO's advertising states you can save money by going direct, implying that bypassing the agent saves money. Have you ever wondered if the savings for bypassing an agent are being spent on advertising? Does any insurance company advertise as much as GEICO? Did you ever consider how much it must have cost to train a Gecko to talk or drive a car?

I believe that a local agent adds value to the insurance contract; he is a licensed insurance professional. He meets the customer; he gets to know the customer and the customer's needs. The agent is a trusted advisor who helps identify other areas that may need additional forms of insurance. The agent is a member of the local community and if the customer has a problem, the insured can meet with the agent face to face.

Notice in this post I have not distinguished between "types" of agents; independent agents, direct writers, captive agents. Regardless of the form, they all add value.

Don't be short changed; get your moneys worth and work with a local insurance agent for your insurance needs.