16-00 Pollitt Dr (map/directions)
Fair Lawn, New Jersey 07410
Call: (201) 254-1888
Fax: (201) 797-4455
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Insurance News - From United Assurance, Inc:
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NJ Business Insurance Newsletter - PIA Spring-Summer 2010 Edition (pdf file)
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NJ Personal Insurance Newsletter - PIA Spring-Summer 2010 Edition (pdf file)
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Media Release, Mike Best Certified As Construction Risk & Insurance Specialist
Fair Lawn, NJ - United Assurance is pleased to announce that Mike Best, from Oakland, NJ, has
been certified as a Construction Risk and Insurance Specialist (CRIS). This insurance designation
recognizes specialized expertise in construction insurance, & establishes one’s commitment to the
construction industry through an on-going continuing education component focusing on construction
risk and insurance.
"The CRIS program has helped us show our construction clients and prospects that we understand
contractors’ most important insurance needs,” said Thomas V Perna, President. “Now Mike Best has
further strengthened our full-service NJ insurance agency with the specialized knowledge necessary
to provide superior risk management and insurance advice and service to our contractor clients."
The CRIS continuing education program is a specialized curriculum consisting of five core courses.
Only those who complete these courses and maintain their knowledge with an ongoing continuing
education program are entitled to display the CRIS designation to certify their knowledge of
construction insurance. For more information about CRIS, please visit www.CRIS-CE.com. United
Assurance, Inc is a Fair Lawn based Independent NJ Insurance Agency. For more information, visit
Mike Best’s website at www.NJinsuranceRates.com, or call (201) 254-1888.
The Select Topics Below Were Provided By The Professional Insurance Agents
NJ Weekly Reporters (Email us to request more information):
PIANJ Weekly Reporter 2010:
GEICO Settles Class Action Suit With NJ Policyholders. According to an article in the Coast Star, an
attorney settled a class-action lawsuit against GEICO. According to Elizabeth Weber vs. GEICO
Insurance Co., the plaintiffs alleged that GEICO’s Web site illegally gave policyholders only $15,000 in
medical coverage without notifying the policyholders in writing. Under New Jersey’s automobile
insurance law, an auto insurance policyholder automatically is given $250,000 in medical expense
benefits. Read more here. Read the order here.
PIANJ Weekly Reporter - April 27, 2010:
Crisis Counseling Is Available To Survivors Of NJ Flooding. The Federal Emergency Management
Agency is promoting a service by which survivors of the 12 flood-stricken NJ counties who are having
difficulty managing the stress of the disaster can get help by making a free phone call. Crisis
counselors from the Division of Mental Health Services of the NJ Department of Human Services are
available to help. They are available at many of the FEMA’s Disaster Recovery Centers.
Few NJ Flood Victims Applying For Aid. According to an article by The Associated Press, a small
number of property and business owners, affected by the recent storms and flooding, have applied for
disaster aid. The Small Business Administration's disaster assistance office, sent nearly 6,300
applications to business and property owners, but had only received about 250 requests for the SBA's
low-interest loans, mostly from homeowners. Have many of your clients been affected by the
flooding? Tell us your experiences on the PIA message board.
Genworth's Seventh Annual Survey Allows NJ Residents To Compare LTC Costs Statewide.
According to Genworth's 2010 Cost of Care Survey, home-care costs, as well as costs of other long-
term care services, are higher in NJ than they are nationally. The median annual rate for home-care
costs in NJ is $46,812 statewide, 8 percent greater than the median annual rate of $43,472 nationally.
FEMA Consolidates Map Service. On March 1, 2010, the contact center for the FEMA’s Map Service
Center was consolidated into the current FEMA Map Assistance Center to provide a one-stop-shop for
a variety of information, products, services and tools that support the National Flood Insurance
Program. To reflect this consolidation, the name of the FMAC changed to the FEMA Map Information
eXchange, or FMIX. Email us for details.
Study: Hospital Cost Shifting Adds To Auto Injury Claim Costs. According to a study from the
Insurance Research Council, low reimbursements from public health insurance programs, such as
Medicare and Medicaid, have prompted hospitals to shift costs to automobile insurance companies—
raising auto injury claim costs and forcing auto insurers to more closely scrutinize and negotiate
hospital bills prior to payment. The IRC estimates that for bodily injury liability claims in 38 tort and add-
on states, cost shifting in 2007 resulted in $1.2 billion in excess hospital charges. The full impact of
hospital cost shifting, including that occurring in other insurance coverages and in other states, is
likely much greater.
ISO, NAIC, NICB Announce Streamlined Fraud Reporting. The ISO, the National Association of
Insurance Commissioners and the National Insurance Crime Bureau announced a program to
streamline fraud reporting. The press release states, “Companies can now file a single report directly
to multiple state insurance departments and the NICB/ISO. Reports filed with the NICB/ISO Fraud
Bureau Reporting Program now will be filed with the NAIC Online Fraud Reporting System also,
eliminating duplicate filing in most states.”
I.I.I.: Bank-Style Regulation Would Raise Insurance Costs. In a press release, Dr. Robert Hartwig of
the I.I.I. said, “Bank-style regulation could needlessly raise insurance costs for hundreds of millions of
insurance consumers and would unfairly require insurers to subsidize the reckless lending practices
and speculative activities of failed banks.”
Zurich Introduces Supply Chain Insurance And Risk Assessment Products In North America.
Zurich introduced its Supply Chain Insurance and Supply Chain Risk Assessment products to the
North American marketplace to help businesses protect their supply chain in the modern, global
marketplace. To view a view presentation about the new products, click here.
First-Quarter Financials. The Chubb Corp reported that net income in the first quarter of 2010 was
$464 million compared to $341 million in the first quarter of 2009. Net income per share increased 46
percent to $1.39 from $0.95 per share. The Travelers Cos. Inc reported net income of $647 million, or
$1.25 per diluted share, for the quarter ended March 31, 2010, compared to $662 million, or $1.11 per
diluted share, for the quarter ended March 31, 2009.
A.M. Best News. AM Best Co revised the outlook to negative from stable and affirmed the financial
strength rating of “A-“ (Excellent) of State Farm Indemnity Group and its member, State Farm
Indemnity Co., which AM Best calls “one of the leading private passenger automobile writers in NJ.”
AM Best Co. downgraded the FSR to “B” (Fair) from “B+” (Good) of BEST Life and Health Insurance Co
(Irvine, Calif.). The outlook has been revised to negative from stable.
PIANJ Weekly Reporter - April 20, 2010:
Misunderstandings May Cause Some N.J. Residents To Miss Out On Disaster Assistance. State
and federal disaster recovery officials said some common misunderstandings about disaster
assistance may deprive individuals of vital help from the state and the Federal Emergency
Management Agency. NJ residents living in a declared county (Atlantic, Bergen, Cape May, Essex,
Gloucester, Mercer, Middlesex, Monmouth, Morris, Passaic, Somerset or Union), who suffered
damage to their home or were otherwise affected by the mid-March storm and flooding may be eligible
for assistance. Residents should not let misunderstandings keep them from applying for assistance.
Study Ranks NJ 22nd In High Auto Premiums. NJ has the 22nd-highest auto premiums out of all 50
states and Washington, D.C., according to a study by Insure.com. This report placed NJ far lower than
other studies. Research put the average in-state premium at $1,463.21.
Motorcycle Thefts Down 13% In 2009 - N.J. Drops 20%, Ranks 25th Nationwide. The latest report
from the National Insurance Crime Bureau shows that motorcycle thefts in 2009 are continuing their
downward trend. A total of 56,093 motorcycles were reported stolen to law enforcement in 2009, down
from 64,492 reported in 2008, a 13% drop. In the report, NJ ranked 25th with 3,913 motorcycles stolen
between 2006-09. The state reported 828 motorcycles stolen in 2009; down from 1,047 in 2008—
more than 20% decrease and above the national average. The top five makes stolen last year were:
1.) Honda, 13,688; 2.) Yamaha, 11,148; 3.) Suzuki, 9,154; 4.) Kawasaki, 5,911; and 5.) Harley-
Davidson, 3,529. Combined they accounted for 43,430 thefts, or 77.4% of the total.
New York WC Wage Benefit And Payroll Cap Increases. In accordance with the provisions of the
2007 Workers’ Compensation Reform Act, on July 1, 2010, and annually thereafter, the maximum
workers’ compensation weekly benefit will increase to two-thirds of the statewide average weekly
wage, as determined by the New York Department of Labor. Since the state average weekly wage has
been determined to be $1,109.75, the maximum weekly benefit will increase from $600 to $739.83 per
week (two-thirds of $1,109.75), effective July 1, 2010. Going forward, the payroll cap under the New
York Workers’ Compensation Construction Employment Payroll Limitation Program will equal the
state average weekly wage amount, which will be $1,109.75 for policies with effective dates on and
after July 1, 2010.
Congress Reauthorizes NFIP Until May 31. Congress finally approved legislation on Thursday, April
15, that reinstates the National Flood Insurance Program, extending the program's authorization until
May 31, 2010—the day before the new hurricane season officially starts. The provision extending the
NFIP until May 31 was contained in H.R. 4851, “The Continuing Extension Act of 2010.” According to
NFIP Bulletin W-10044, the extension is retroactive to Feb. 28, 2010. The House Financial Services
Committee unveiled legislation providing long-term reauthorization and reforming of the program, with
a hearing set for next week. The NFIP also will implement the following changes effective May 1, 2010:
1.) increase the federal policy fee from $35 to $40 to fund program administrative costs; 2.) increase
the federal policy fee from $13 to $20 for Preferred Risk Policies; 3.) decrease building rates to comply
with the statutory annual limitation on premium increases; and 4.) update the Community Rating
System listing. Additional information on these changes is available here.
FEMA: SBA Disaster Loans Available To March Storm Victims. The Federal Emergency Management
Agency issued a press release on the availability of Small Business Administration Disaster Loans to
victims of storms and flooding in March. Though the release is addressed to residents of
Massachusetts, it applies to those in affected counties of all states.
RIMS Benchmark Survey™: Unyielding Soft Market Continues To Chisel Away At Insurance
Premiums. Now in its seventh year, the soft market shows few signs of loosening its grip on
commercial insurance pricing, according to the RIMS Benchmark Survey™, administered by Advisen
Ltd. Average premiums in every line tracked by the survey fell in the first quarter. However, forecasts for
an above-average hurricane season may signal rising premiums on the horizon. As has been the
case throughout much of the soft market phase, general liability was the most competitive line during
the quarter, with the average premium falling 4.4%. The average property premium, which had been
essentially flat over the past several quarters, fell 2.9%. The average workers’ compensation premium
was down 2%, and average directors and officers liability premium was off 1.1%. D&O average
premium had been flat to slightly higher throughout 2009 due to rate increases in the financial
institution sector, but those increases now have abated.
PIANJ Weekly Reporter - April 13, 2010:
Appellate Court Denies Motion To Delay Kyleigh’s Law. As PIANJ previously reported, Kyleigh’s Law,
a first in the nation initiative designed to help prevent senseless teen driver deaths and injuries,
mandates the display of red, reflective decals on the front and rear license plates of any vehicle
operated by a permit or probationary license holder younger than 21. Last week, the state Appellate
Division of Superior Court denied a motion to delay Kyleigh's Law from taking effect May 1, 2010.
What To Expect After Registering For Assistance With FEMA. The Federal Emergency Management
Agency issued a press release that outlines the guidelines of what NJ residents can expect when
meeting with FEMA inspectors following the storms and flooding of mid-March.
Disaster Recovery Centers Open In N.J. Disaster Recovery Centers now are open in 10 of the 12
federally declared NJ counties (Atlantic, Bergen, Essex, Gloucester, Middlesex, Monmouth, Morris,
Passaic, Somerset and Union counties) to assist individuals, households and businesses affected by
the storms and flooding of mid-March.
FEMA: Mold Can Be A Danger After Flooding. FEMA issued an advisory on the dangers of mold in
flood-damaged buildings. The press release lists the effects mold can have on humans, as well as
the proper methods of removal.
New Crosswalk Rules In Effect. As of April 1, motorists in NJ are required to stop and stay stopped
for pedestrians in crosswalks. Prior to the change, motorists were only required to yield to those
pedestrians.
AAIS Introduces Historic Preservation Tax Credit Coverage. The American Association of Insurance
Services introduced a new endorsement for insuring loss of historic preservation tax credits in the
Builders' Risk section of its Inland Marine Guide. The endorsement covers the cost, up to specified
limits, incurred by an insured when tax benefits for the preservation of historic properties are reduced,
or lost entirely, due to a loss covered under the AAIS Builders' Risk Rehabilitation and Renovation form.
EPA Requires Lead-Safe Certification Of Contractors. In 2008, the U.S. Environmental Protection
Agency issued a rule requiring the use of lead-safe work practices aimed at preventing lead poisoning
in children. This rule goes into effect April 22, 2010, and mandates the certification of certain repair,
renovation and painting contractors. Any contractor, including renovators, electricians, HV/AC
specialists, plumbers, painters and maintenance staff, who disrupts more than six square feet of lead
paint in pre-1978 homes, schools, day-care centers and other places where children spend time is
subject to certification. To become a certified renovator, individuals are required to take eight hours of
training, including two hours of hands-on training. Firms must be re-certified every five years for
renovations and every three years for lead-based paint activities (abatement, inspection and risk
assessment). The required certification will not change contractors’ liability for claims that arise out of
their work, but it will impact underwriting for those contractors who are insured, or who apply for
insurance. This certification requirement may renew the interest of clients in obtaining insurance for
their lead-paint exposures. For EPA information, click here. http://www.epa.gov/lead/pubs/toolkits.htm
Government To Offer Temporary High-Risk Pools. Under the new health-care laws, the Department
of Health and Human Services initiated action on a temporary high-risk health insurance pool for
Americans denied coverage on the grounds of “pre-existing condition.”
ACE Group Opens Office In Jersey City. ACE Group established a new office at 10 Exchange Place,
Jersey City. This new office serves as an expansion to ACE’s three existing offices in NJ, located in
Cherry Hill, Madison and Morristown. The opening of the new office in NJ is part of ACE’s ongoing U.S.
growth strategy. The ACE Group offers a broad range of insurance and reinsurance products,
including property/casualty, accident and health and life insurance. The Department of Banking and
Insurance issued a press release about the expansion.
The Hanover Expands Industrial Risk Solution, Offering More Opportunities For Its Agent Partners.
The Hanover Insurance Group Inc. unveiled an expanded solution for industrial businesses, Hanover
Specialty Industrial, which includes Hanover Specialty Industrial Property and Hanover Specialty
Insurance Brokers, two businesses that work in tandem to offer high-hazard industrial clients a total
account solution for property, general liability, products liability, pollution, excess liability and other
coverages.
PIANJ Weekly Reporter - April 6, 2010:
President Declares Additional Major Disaster For NJ. The U.S. Department of Homeland Security’s
Federal Emergency Management Agency announced that federal disaster aid has been made
available to NJ to supplement state and local recovery efforts in the areas struck by severe storms and
flooding beginning on March 12, 2010, and continuing. Federal funding available to affected
individuals in Atlantic, Bergen, Cape May, Essex, Gloucester, Mercer, Middlesex, Monmouth, Morris,
Passaic, Somerset and Union Counties.
HTS, MVC Develop Materials For N.J.’s Graduated Driver License Law. The Division of Highway
Traffic Safety, in partnership with the Motor Vehicle Commission, developed a FAQ guide, a poster and
a palm card to help educate teens, parents, driver education professionals and the public about the
pending changes to the Graduated Driver License law, which takes effect May 1, 2010. Insurance
agents can use these materials to help educate their clients about the new law.
The Issue Of Green Insurance. Green insurance, insurance policies designed specifically for
environmentally friendly buildings and enterprises, is an up and coming insurance product. According
to a press release issued by the Insurance Information Institute: “More than 600 innovative, eco-
friendly products and services now are offered by 244 insurers, reinsurers, brokers and insurance
organizations in 29 states; 37% of those activities come from U.S. companies.” Are you familiar with
this type of insurance? Are you prepared to answer your clients’ questions about this type of coverage?
Do you have advice for other agents who may be considering selling green insurance? Tell us your
thoughts on the PIA message board.
Obama Signs Health-Care ‘Fixes’ Bill. After being passed by both houses of Congress on March 26,
2010, President Obama signed the health-care reform “fixes” bill into law last week. The law will
expand subsidies for lower- and middle-income, and decreases a tax on high-end health policies.
The Hartford Reveals Newest Business Plan. The Hartford Financial Services Group Inc. revealed its
newest business plan. A one-brand approach for consistency purposes has been identified as the
new approach and within that, three segments were announced: commercial markets, wealth
management and consumer markets. The Hartford stated its go-forward plan will focus the company
around its customers, partners and The Hartford's strong brand. According to the company, its
competitive advantage consists of a large and growing customer base; a broad and diverse product
portfolio; and an enviable distribution network of agents, brokers and advisors. The Hartford's stated
goal is to deliver sustained, profitable growth with strength, confidence, focus and discipline.
The Hartford Repays Bailout Funds. In a press release, The Hartford “announced that it has
repurchased all of (its) preferred shares issued to the U.S. Department of Treasury under the Capital
Purchase Program. … The Hartford paid $3.4 billion to the U.S. Treasury to repurchase the preferred
stock, plus a final dividend payment of about $21.7 million.”
MetLife Enhances Identity Protection. A press release from MetLife Auto & Home “announces an
enhancement to its identity protection services to include assistance for tax-related identity theft. The
assistance is offered as part of the company’s identity protection services provided to automobile,
homeowner, renter’s and condominium customers at no additional cost, in states where approved by
regulators.”
OneBeacon Announces Expanded Policy For Construction Industry. OneBeacon's Construction
@vantage® combines property, equipment breakdown, crime, contractors equipment, builders risk
and installation in one policy for the construction industry.
Utica National To Acquire Founders Insurance. Utica National Insurance Group has entered into an
agreement to acquire Nationwide Holdings Inc., the holding company for the Founders Insurance Co.
of Des Plaines, Ill.
Homeowners Consumer Guide Available. The DOBI’s Homeowners Consumer Guide offers
consumers basic information on homeowners coverages; what to look for when purchasing a policy;
what to do if you have a loss or policy cancellation; as well as a comprehensive question-and-answer
piece that highlights some of the most commonly asked questions on homeowners coverage. To
obtain a copy, logon to PIANJ’s Web site and type QS29154 in the Quick-Link box, or fax PIANJ’s
Industry Resource Center at (888) 225-6935.
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