Big Boy Toy Insurance

Sho Ryders of Tucson Annual Fundraiser

2010-05-23T11:52:00.001-07:00

I made it out to The Tucson Sho Ryders Annual Fundraiser out the sports complex on Golf Links and Craycroft next to Davis-Montham Air Force Base. These guys know how to throw a bike event together. They had trophies for best bike in four caetgories - sport bike, cruiser, girls bike and People's Choice. Casper's Honda Valkyrie took home best cruiser and People's Choice. Good Job!

This is Carrie Schultz and her Crew from Gear Up in Tucson. They have all your riding needs taken care of, except for bikes! We look forward to a long lasting relationship with the Gear Up crew.

Casper's First Place Cruiser and People's Choice Honda Valkyrie. This bike has the same size engine Honda puts in it's Civics! Imagine the power of a Civic and the weight of a motorcycle! This is one pwerful road mechine.

First Place Sport Bike category. This bike haas some best paint I have ever seen. My pic does not do it justice. I forgot to get a make and model. If you know, please post a commnet.

It wasn't all 2 wheeled toys Saturday at the Sho Ryders Event, someone brought this nice Sand Rail the party. Guess what, we have one of the only insurance carriers that writes policies for these cool Big Boy Toys, Foremost! Call us for your Sand Rail Insurance quote/policy.

I had a great time at Sho Ryders bike event fundraiser Saturday May 22, 2010. Go to our Facebook Page to check out all 65 photos from the event. Big Boy Toy Insurance specializes in placing policies on Motorcycles, Boats, RV's, Travel Trailers, Toy Haulers, ATV's, Golf Carts, Snowmobiles and especially the Classic Muscle Cars! Call us today for your FREE and FAST (less than 30 minutes) Insurance Quotes from multiple carriers. 866.450.6297

Arizona Victory KIIM FM Bike Night

2010-05-18T20:49:00.001-07:00

Made it out to Arizona Victory's Bike Night at the Fox and Hound at Tucson's Foothills Mall. Tonight we had a good turnout of 2009 and 2010 Victory's.

Here's a Victory with some great "flare". I love the blacked out forks. It looks like the proud owner of this bike has put some serious TLC into his "toy".

Here's a great side-by-side shot of a 2010 (left) and a 2008 Victory Vision cruiser. Notice the subtle differences in styling?

Check out Victory's newest model, Cross Roads. This mechine is built for comfortable highway travel while still keeping a great modern style for a true American motorcycle.

Call us at 866.450.6297 for your FREE no obligation Motorcycle Insurance quote on your Victory!

Blue Cross Blue Shield of AZ - New Appointment

2010-05-17T14:13:00.000-07:00

Big Boy Toy Insurance is proud to announce our new appointment with Blue Cross Blue Shield of Arizona. We now have access to Arizona's #1 health insurer offering Arizona residents and employers quality health insurance at affordable rates.

We will adding a link along the right side of this blog allowing you to initially review Blue Cross Blue Shield's individual plans and rates. We are here to assist you in selecting and placing a health insurance policy to meet you and your families healthcare needs.

Feel free to call us for over the phone discussion of how BCBSAZ can meet your needs.

866.450.6297

Tucson Vintage Bike Night

2010-05-12T21:37:00.001-07:00

This group is a great bunch of bikers. This group has a unique collection of European morotcycles including BMW, Ducatti and Motto Guzzi to name a few of the makes.
Here is BMW's newest bike on Tucson's streets

For all you Moto Guzzi fans, here you go. Itialian style meets
Italian engineering at it's best.

For you Ducatti fans, here some great bikes for your "drooling" pleasure. You gotta hand it to the Italians, they know how to put the flare on some muscle.

I was really worried about how this shot was going to come out. I under exposed the shot due to the sun's glare hitting the silver fareing. It turned out well enough to make the post as a great example of Ducatti style.

Check out more photos by clicking on Big Boy Toy's Facebook page on the top right.
For your Fast Free Motorcycle Insurance quote, call Big Boy Toy Insurance at 520.908.7866 or email info@bbtimail.com with your request.

The Blue Book GC Showcase - Phoenix

2010-05-12T17:40:00.000-07:00

I attended The Blue Book GC Showcase event in Phoenix on May 11, 2010. It was a great event for marketing and networking with Arizona general and sub contractors. I was able to introduce BBT Commercial to over 30 vendors and participants with great feedback.

BBT Commercial specializes in meeting the insurance needs of construction contractors including General Liability, Surety Bonding, Equipment, Property and Commercial Auto coverage. David and I have collaborated to find insurance carriers who offer the right policies with right coverages to make sure our client's needs are met for the best premium available. We pride ourselves in submitting ALL received quotes to the prospective client allowing them to make the best decision for their company's insurance needs.

Dave has made great strides in obtaining surety bonding sources that can meet the wide range requirements our clients present including high aggregate limits and poor credit ratings.

For more information about how our select carriers can meet your company's insurance needs, feel free to call us for a quick 30 minute needs review to determine if your insurance has any gaps or if you are just paying too much in premiums. 866-450-6297

sean@bbtimail.com or david@bbtimail.com

The Hartford Celebrates 200 Years in Business

2010-05-11T00:00:00.000-07:00

Today, The Hartford Insurance and Financial Services celebrated it's 200th year in business. Quite a feat for any organization to reach. Big Boy Toy Insurance is very proud to be an appointed agency offering The Hartford insurance products to meet our client's needs today and for the next 200 years.
Please follow the link to Insurance Journal for a complete story.

Lone Wolf Riders 3rd Annual BBQ

2010-05-08T20:34:00.001-07:00

Today the beer was cold and BBQ was good at Lone Wolf Riders' 3rd Annual BBQ Fundraiser. I had a great time meeting the guys and talking motorcycle insurance. This club has a nice collection of bikes as you can see from the few photos I posted here.

Big Boy Toy Insurance is looking forward to seeing these guys out at other events.

Here is a great example of a custom trike that makes heads turn along Tucson's streets. Most insurance agencies have no idea what to do with a mechine like this when he comes walking through the door. Big Boy Toy Insurance knows how to get the right coverage on a unique machine like this one.

God Bless the United States Marines and all those who keep our great Nation free from those who want to destroy it!

James and his Glastron GLX 205 Volvo

2010-05-08T12:19:00.000-07:00

Big Boy Toy Insurance is proud to announce the addition of our newest client, James. Here he is proudly standing next to his 2008 Glastron GLX 205 Volvo. This is one nice boat. I met James at Roosevelt Lake in Central Arizona in March for some early season skiing and wake boarding. This thing can get going in a hurry even with a 200 lb. skier on the end of the ski rope.
We placed his Boat Insurance through American Modern saving him $120 annually from his prior carrier, Foremost. Also, we were able to increase his liability limits from $25,000 Combined Single Limit to 100,000/100,000/100,000 Split Limits. He was a tough nut to crack but we did it!
You can usually find James along with his entourage of ski junkies any given weekend at Roosevelt or Apache Lakes in Central Arizona.

Grundy Worldwide Auto Insurance Example

2010-05-07T10:04:00.000-07:00

Big Boy Toy Insurance is proud to insure "Harry's" 2003 Dodge Viper RT/S through Grundy Worldwide.

To Give you an example of how affordable Grudy's Exotic Car Insurance Policy is, we covered "Harry's" Viper with $500,000 Liability, $0 Collision Deductible, $0 Comprehensive Deductible, Towing/Roadside Service, with an agreed value of $35,000 for $460 per year!

Grundy Worldwide was our choice carrier for "Harry" due to his occasional drive to work and "tour" around Southern Arizona without a penalty from Grundy. Grundy also offers coverage for hard to find parts and accessories included in their premium.

We also offer other carriers who specialize in the collector/muscle/exotic car market such as Hagerty, American Modern and Victoria/Allied.

Call or email us for your quotes from ALL our appointed carriers.

"Toy" Market Good Economic Indicator

2010-05-06T16:53:00.000-07:00

After marketing to our local "toy" dealerships, I am encouraged about our economic future when I hear the dealership salemen talk about how sales are picking up.

People are begining to buy "toys" again after a 2 year hiatis due to harsh economic situations. A leading economic indicator better than GDP, Unemployment Rate, CPI, or any other statisic is spending on recreational vehicles. RV, motorcycles, boats and sand rails sales are begining to pick up.

One of the first consumer items to stop selling in hard economic times are the "toys". In 2008, when gas prices hit $4.00 per gallon, motorcycle and scooter sales skyrocketed. Dealerships were signing all the way to bank until December "08 when prices settled back down to $2.50 per gallon. Since then, sales have steadily slowed down to an almost stand still forcing many dealerships to close their doors.

More good news from Winnebago last month: the nations largest, oldest and best known RV manufacturer hired back 1,500 assembly line workers to meet increased dealership orders. That is some great news for everyone involved in the "toy" business.

RV Insurance for Summer Travel

2010-05-06T16:38:00.000-07:00

As an RV'er traveling accross America stoping at your favorite campground, a very important coverage you need to verify on your policy is campground/premises/full timer liability.

This liability coverage is similar to your homeowners' liability insurance. This coverage is designed to protect you in the event your new neighbors stop by for a visit and become injured while stepping into your RV or trip over your campsite equipment. It is the slip and fall coverage we all know liability insurance to cover.

This compares to the same situation when your neighbors are invited for dinner and accidentily trip/fall and need medical attention.

Your RV's auto liability coverage does not apply as "campsite" liability. It is solely designed to cover your RV when you cause an accident while on the road.

Hope this helps explain why your RV insurance poicy should list two seperate liability limits.

BP Offshore Oil Rig Exposion

2010-04-30T14:34:00.000-07:00

It seems suspect to me that shortly after Obama allows expanded Atlantic Offshore Drilling the Gulf Coast experiences one of the worst rig disasters in over 2 decades.

Also, here a few other points that seem suspect as well:

1. Modern offshore oil rigs have several redundant safety devices to prevent such disasters
2. it was reported there was 2 explosions, the second was large and powerful enough to cause toe rig and platform to MELT into the Gulf
3. the unmanned submarine sent down is unable to find the shutoff valve, required to be in place before pumping can begin to prevent such disasters
4. the safety devices located at the wellhead (5,000 underwater on the Gulf floor) are missing

We have to wait and see what the investigation finds before making any true inferences.

Contractors Bonding Basics

2010-04-30T13:21:00.000-07:00

Contractors that bid government jobs are required to obtain Bid/Performance Bonds through a licensed insurance agent. Let's look at what a bond is and why municipalities require a bond.

A surety bond is similar to a bank loan with the surety company acting like a bank. The surety company is agreeing to pay an agreed upon amount in the event of a claim (I will discuss later). If the municipality is requesting a $500,000 bid bond, the contractor has to prove to the surety company that the company can make good on that amount. This is where the surety company needs to qualify the contractor for the ability to repay the amount in the event of a claim. The contractor is responsible for paying back the surety company the claim amount. If a full claim is filed against the bond, the contractor is required to pay back the surety company. It acts like a line of credit for a specific event in exchange for a premium.

Contractors that have poor credit can experience difficulty in obtaining a bond just like obtaining a loan. Two options instead of obtaining a bond are self insuring or collateralizing. Self insuring is what it sounds like. The contractor puts puts up the full amount into an escrow account until the project is completed. Collateralizing is where the surety company requires a portion of the bond amount be remitted in the form of cash held in trust until the end of the project.

Why do municipalities require a bid bond? When a contractor enters into a bidding contract with a municipality, the contractor has stated to the municipality of their good faith intention to win the lowest bid for the project. The contractor maybe among several other contractors bidding for the same project. As required for government projects, the municipally has to allow several bids to compete, all of which are under contractual obligation to submit their best pricing. This can create a financial hardship for the municipality and all other bidding contractors if one or more of the contractors withdraw their intentions before the award is finalized. This creates a claim.

The municipality can then file a claim against the withdrawn contractors bond for any amount up to the full bond amount.

The need of the bond is cover any financial hardship realized by the municipality or any of the other bidding contractors.

Big Boy Toy Insurance has secured relationships with several of the nations best and largest bond issuers regardless of current credit standing. We have been successful in obtaining high risk bonds for a few of our local contractors with great turn around and service. For our low risk contractors, we are glad to have the ability to place those risks with either HCC Surety or CNS Surety. CNA is one of the industry's largest and best rated issuers offering highly competitive premiums for all classifications of contractors.

We also have the means to issue aggregate bond limits making future bond issue fast and painless.

Please contact us for more information or apply over the phone for your Surety Bond pre approval.

General Contractors that Grind My Gears

2010-01-29T11:26:00.000-08:00

GRIND MY GEARS

A new day and here we are again. How about that stimulus package? Have you felt it yet? I have not nor have Millions of out of work people. How about those people that had jobs but lost them? Are they back to work? I think not. Did they get there jobs back? No? So, how has this package helped the common man? It has not. Well than, who has it helped, BIG Business? Yes, that right the big contractor that is large enough to get the job. The little contractor same licenses same experience can’t do it, why capital. The little contractor who had the capital no longer has it in an attempt to keep alive. And what about the big contractor who is still holding on to the small guys money?

I am not talking out of my head when I say this. I know from experience that it is true. I did a job for a very large contractor for a large municipality in Arizona and I got screwed out of a $250,000 dollars on a project that my company did all the work. The General Contractor basically watched me as I completed the project. But, as it would be, I signed in the change order the GC submitted to the city, the GC received payment from the city, and lo and behold, withheld my payment. My only recourse was to attain an attorney and rack up the attorney fees. You all know who gets rich. Now, they have my money so they can afford their attorney where I am left fending for myself, go figure. Here comes the real gripe.

The city has a clause in there contract that says before the release of the money (90% mine), the GC has to get me to sign off that I have been paid. Did this happen? No, it did not. The GC received my money and the city said they can’t help. The city did not get a release from us in any way or form and of course in Arizona you can’t lien a landfill site. So where does that put the little guy? Bankrupt and the big boy continues to gets work from the city spending the Governments stimulus money that is supposed to help Middle America. Why am I not surprised? Well, if I was a minority (oh by the way, the big contractor is), I would have gotten paid. Well I did not get paid and the city, after 2 years of trying to fight this I am out of money and thanks to this contractor, broke. My family will soon be homeless. Thanks to the Government and the ability to change the rules as they see fit.

Is your Insurance Agent Really Working Hard?

2010-01-27T13:20:00.000-08:00

How do you know your insurance agent is really working hard placing your insurance needs with the best available carrier? Do you get multiple quotes to select from? Is your agent reviewing three, five, seven insurance quotes with you? Are you able to select the insurance company you want?

We have an agency policy to review ALL insurance quotes we receive for ALL of our prospective and current clients. We feel, you, the insured, have the right to know what we have done on your behalf. When we complete an application, we notify you that it will take several days before we have ALL of your quotes to review with you. In that time period, we have submitted your application to no fewer than 3 insurance carriers using that many additional supplemental applications. It takes a lot more time than a captive agent, such as Allstate, State Farm and Farmers, to gather the needed data, collect that data on the application, scan it to your new electronic file and email it off to the three or more carriers. We then wait for the replies from the carrier underwriters for additional information or a quote.......read more

Please feel free to contact us with questions or assistance at info@bbtimail.com.

Also, please leave your thoughts of this or other articles in the COMMENT section so we know what information is helpful and what is useless.

Specialty Toy Insurance is NOT Auto Insurance

2010-01-27T13:12:00.000-08:00

To begin, let’s look at types of insurable “toys”: Motorcycles, Boats, Recreational Vehicles, Dune Buggies and Sandrails, All Terrain Vehicles, Side-By-Side Utility Vehicles, Modified Golf Carts, Golf Carts, Snowmobiles, Collector Vehicles, Travel Trailers and Personal Watercraft.
Why do all of these vehicle types need their own individual insurance coverage? Any vehicle issued a state registration needs to be properly insured. All 50 states have adopted the required minimum liability insurance requirements. In Arizona, the minimum liability limits are 15/30/10. Insurance is not designed to have one policy meet all vehicle needs. If you need a screwdriver you do not buy a hammer. Vehicle insurance is no different. A motorcycle policy is not designed to cover the insurance needs of a boat. ..............read more

Please feel free to contact us at info@bbtimail.com for any further questions or assistance.

Press Release-Big Boy Toy Insurance gets CNA Surety Appointment

2010-01-27T10:12:00.000-08:00

Big Boy Toy Insurance, LLC is proud to announce its recent appointment with CNA Surety and Western Surety. This appointment offers BBTI a new and highly competitive surety bond market for contractor’s performance and bid bonds, license bonds and tax bonds.
CNA Surety, through it’s partnership with Western Surety, is a market leader in the bond market around the world. CNA’s A.M. Best financial strength rating is ‘A+’, the highest possible rating, demonstrating their commitment to the surety market and their agency ....read more

We encourage all visitors to leave a comment and subscribe to our RSS Feeds.

2010-01-22T10:22:00.001-08:00

U.S. Auto Insurance Companies do not extend coverage into Mexico. The only exception is physical damage (comprehensive and collision) coverage within 15-50 miles of the border, depending on the specific carrier. Your U.S. State issued liability auto insurance coverage stops at the Mexican border because of one reason. Mexico operates under Constitutional Law as opposed to Precedent Law in the United States...

...Word of advise, when traveling south of the border with a vehicle, get Online Mexican Travel Insurance from one of several well established carriers. Most of the Online Mexican Travel Insurance brokers offer the same carriers such as GNP (oldest), ACE, and GE and everything you need to quote, bind and issue coverage is readily available on the website.
Please read the full article at any of the following online publishers: Ezines, Amazines, GoArticles, Article Base, Insurance Articles.

ProBuilders Risk Retention Group is Going Out Of Business

2010-01-19T12:34:00.000-08:00

According to Insurance Journal (01/19/10), ProBuilders Risk Retention Group will no longer accept any new business and non renew all existing policy holders as of March 1, 2010. “According to Bill Tepe, chief financial officer for Nations Builder Insurance Services (NBIS), the exclusive manager of ProBuilders, the group program has not been able to remain competitive and has been losing revenue due to the collapse of the real estate market and increasing competition from traditional insurance carriers.”

ProBuilders was established in 2001 as a direct result of ‘A’ rated insurance carriers pulling out of the highly litigious market of residential construciton. Home builders and artisan contractors were faced with little-to-no options when it came to finding General Liability insurance for their operations by the end of the 1990’s due to large claim pay outs filed by homeowners primarily in California, Nevada and Arizona. These claims were spawned from the rapid expansion of the new home market where builders and contractors “cut corners” in order to meet demand and time schedules.

When a segment of the economy, notably the construciton market, is not being serviced by a large segment of the insurance industry, niche companies will fill that void. That is exactly what ProBuilders did. They filled a highly demanded gap in available general liability coverage for a segment of the economy that was fuel for entire cities such as San Diego, Sacramento, Las Vegas, and Phoenix. Because they were the “only player in town”, premium was not an issue for many of their insureds. If a home builder wanted to build homes, he needed insurance and ProBuilders was more than happy to be the “only player in town”.

With their coffers full of premium, ProBuilders expanded into Eastern U.S. Markets like New England attempting to take advantage of the lack of insurance carriers in those states. ProBuilders was willing to write all classifications of contractors while charging a rather high premium against the risk. Their aggressive expansion began catching up with them in 2007 when their year-end written premium was $62.7M and drastically slipped year-end 2008 to $25.6M and mid-year 2009 to $6.8M as ‘A’ rated carriers began re-entering the construction market with substantially lower premiums.

This is an unfortunate circumstance for contractors insured with ProBuilders. They now have to scramble to find a new carrier in times when construction has reached a Post WWII low. However, it is a good sign for carriers that have made a point to re-enter the construction market and establish strong relationships with retail agents and brokers focusing on that market segment. This allows retail agent’s access to carriers that can handle more than one specific niche market risk and gives high volume retail agencies and brokerages the ability to create market specific programs with competitive premiums for their clients. ProBuilders was only offering General Liability and Builder’s Risk policies while larger carriers like Travelers, CNA, Navigators and Scottsdale Indemnity can offer a full suite of products, such as Inland Marine, Property, and Commercial Auto, mid-large cap contractors require. BBT Insurance Commercial specializes in Arizona Contractor’s Insurance needs offering all insurance products needed by contractors at highly competitive premiums from a variety of carriers, including Risk Retention Groups, Admitted and Non-Admitted Carriers, with financial ratings ranging from ‘A+’ to ‘B’ as determined by A.M. Best.

Mexican Travel Insurance for Americans

2010-01-18T12:11:00.000-08:00

Are you considering traveling to Mexico this year? Did you know that Mexico requires Mexican Travel Insurance for all non-Mexican registered automobiles, Recreational Vehicles, Travel Trailers, and Motorcycles? The process for obtaining and paying for Mexican Travel Insurance is as easy as locating a website and typing in the requested information. Following are the basic steps to expect. Here are the items you will need to secure in order to obtain a Mexican Travel Insurance Policy.

Feel free to read the complete article at Ezines, ArticleBase, GoArticles, Amazines and Insurance Articles.

Alert - Auto Insurance, Health Insurance Not Allowing Pre-Existing Conditions

2010-01-13T09:56:00.000-08:00

The whole Federal Health Insurance Reform debate is out of control. Americans, Congressmen, insurance cannot be placed against a risk that has already been damaged. The only exception to that being auto liability insurance which is NOT covering any peril to property in your care, control or custody. Your body is your property (a physical being) in your care, control and custody just like your car. Ask any rebellious teenager if their body is not their property.

Health insurance companies make a profit from the premiums they charge. Some make much more profit than others and some are created as Not-For-Profit entities. Congress has attacked For-Profit health insurance companies on the grounds that they are creating 'excessive' profits. These health insurance companies are profiting on the backs of Americans health. How dare them!

Click here to read the full article.

Insurance Agents Help With Claims Processing

2010-01-11T14:27:00.001-08:00

Your insurance agent can be a big help when it comes to filing and handling a claim against insured losses.

When something happens to you and your family, it is always reassuring to know that a phone call can make things better. Relying on your agent in crisis times is good sound advise. Agents can take down all relevent information to pass along to the carrier. Can notify you of what to do and expect next.

Your agent can also be your worst nightmare. If you are late with your premium payments and do not make an effort to work with your agent, your agent can recomend the carrier not collect earned premium and NOT cover the claim. This leaves you out in the cold to fend for yourself against a sure fire lawsuit.

Insurance is a contract designed to transfer risk of loss to a company in exchange for premium. If you do not pay the premium, you are in breach of contract giving the insurance company reason to cancel any obligation.

Keep your premiums current and stay in touch with your agent to make sure in the event of an accident, you will not be shouting bad language at your insurance agent.

Sean Kimbrough

Tiger Woods Creates New Insurance Policy

2009-12-17T09:47:00.001-08:00

If you have no idea what is going on with Tiger Woods, then you must have been locked up in an Iraqi Prison. Because of his shinanigans, his corporate sponsors are dropping him faster than Jimmie Johnson racing around Daytona. Why are they doing this?

Copanies have images just like celeberties. When a company hires a celebery to be the face of the company and portray the company image, they expect that celeberty to maintain that image.

Tiger Woods was a perfect spokesperson for his top notch endorsemets like Accenture, Gillette, AT&T and Buick. Blue Chip companies using a Blue Chip athelete to promote their image. What happens when that Blue Chip spokesperson loses the Blue in his Chip? What does that do to the comapnies respective image? Can a image change of a spokeperson reduce revenues and company loyalty? You bet it can. What can companies do to recoup those losses?

Now they can buy insurance against such instances. Tiger Woods has created a new insurance poicy for large cap companies who rely on celeberties to promote their image. Celeberty goes in the tank, sponsor has no worry about loss to revenue. They can recoup the losses through transfering the risk to an insurance carrier.

Do we live in an ever changing society, or what? Thanks Tiger. You gave me another arrow in my insurance quiver.

Sean Kimbrough

Tucson Gem Show Insurance Requirements From Pima County

2009-12-17T08:40:00.000-08:00

This year may be the last year Tucson will host the world's largest gem and mineral show. The show is administered by the Pima County Stadium District, Kino Sports Complex/Tucson Electric Park. Due to political and fiscal controversy surrounding the show, event organizers are considering pulling the plug on one of Tucson's largest annual revenue generating events.

Please follow this link to read the entire article published at Ezinearticles.com

We offer insurance coverage for vendors that plan to participate in events throughout Arizona.

Not All Insurance Agents Are Created Equal

2009-12-17T08:24:00.000-08:00

Agents have fiduciary duties to their clients requiring the agent to collect all relevant details of the risk to be insured. That involves asking several questions as to the characteristics of the risk which the insured wants to place insurance against. All the collected information needs to be translated to the underwriter of the carrier which the agent wishes to quote/place the policy so the underwriter can appropriately approve and bind coverage.

Follow this link to read the entire article published on Ezinearticles.com

The article was spawned out of a request to quote event insurance which was already submitted by another local agent to a wholesale broker he and I happen to have in common. We found out that the other broker was not asking all the appropriate questions regarding the insureds operatoins. When we discovered material facts that could effect the covered needed, the insured felt we were only trying to make the other broker look incompetent. That was not the case. We only wanted to make sure the insured was receiving adequate coverage to meet his risk.

Merry Christmas.

Genral Contractors, Additional Insured Endorsement Downside

2009-12-12T13:23:00.000-08:00

General Contractors (GC) have gotten into a bad habit of automatically requiring their Subcontractors to add the General Contractor as an Additional Insured on the Subcontractor's Commercial General Liability insurance policy without regard to the negative consequences.

Follow the link below to read the entire published article on eZines.com...

General Contractors...

Divorce Insurance, Prenumptual Agreement, Preperation for the end

2009-12-11T10:58:00.001-08:00

Are we really goiong to see insurance policies covering the costs of divorce in the near future?

"A professor at the University of Illinois at Chicago says it would be feasible for insurance companies to offer divorce insurance."

"J. Christopher Westland, a professor of information and decision sciences, says he began sketching out the actuarial tables for such insurance as an exercise, prompted initially by watching a friend go through a messy divorce and its financial consequences. After a little work, he says he found the idea is possible."

'“It’s basically a workable business,” Westland says.'

According to Profesor Westland, divorce policies would cover the costs associated with legally divorcing. That would primarily include attorney fees and court costs. It would not include any money for settlements or living expenses afterwards.

What about the moral hazard of offering an insurance policy that could encourage a spouse to file for divorce early in a marriage?

"...David Hoffman, a law professor at Temple University and an expert in contract law, who has written about divorce insurance, says he is not sure there is any way around the moral hazard and that is the idea’s undoing."

"No insurance company is likely to touch it, he says. In some states, it may not be legal to offer insurance with a moral hazard."

'“Given the moral hazard, I just don’t see it as an insurance product,” he says.'

With 50 percent of all U.S. marriages ending in divorce within 30 years, the notion of insurance against the new peril of 'Divorce' is more like saving money to cover the inevitable. Insurance companies would have to charge a premium equal to 50 percent of the benefit if they expect to at least break even on these new policies unlike homeowners insurance which is designed to insure, primariliy, against natural distaters that connot be predetermined. Can a homeowner expect a 50 percent chance that his home will catch fire, be burglarized, or destroyed in a windstorm? No. There is not a moral hazard associated with homeowens insurance. Arson is not a covered peril in any homeowners policy.

If it happens, more power to the attorneys who are the ones who will obviously benefit the most from divorce insurance. It would gauruntee their fees would be paid up to the policy limit. If you've been through a divorce, the attorney fees can create more stress than the actual breakup.

Sena Kimbrough
Big Boy Toy Insurance

A portion of this article was reprinted from the following osurce:
http://www.insurancejournal.com/news/national/2009/12/11/105912.htm

Contractors, Taken Advantage of by Insurance Agents

2009-12-09T17:39:00.000-08:00

U.S. Contractors are taken advantage of by their insurance agents at every renewal and new business submission. Why? Majority of Insurance Agents are lazy and their contractor clients take whatever their agent puts in front of them.

Anyone who purchases insurance products from an independent agent should demand quotes from multiple carriers. That’s the agent’s job, to shop the risk with several carriers to find the best choice and the best value. That is what the contractor is paying for, someone who has an understanding of his operations in order to make sure the coverages applying for are appropriate for the contractors exposure. How does the contractor know if he getting a good deal if he has nothing to compare? It’s like going to a used car lot and the salesman asks what you want. You say a sedan. He says here is the sedan for you. Give me a check and I’ll give you the keys. You say thank you and drive off the lot, down the road, get home and realize it is not the car you really wanted. Too late, you drove it home.

As an Independent Insurance Agent in Arizona who specializes in construction trades, and someone who was a construction contractor for the past 15 years, I was taught that it is my duty to my client to find the best insurance policy through the outlets I have access to. That does not mean I shop an application to 3 out of 5 carriers and pick the one I think is best for my client. It is not my job to make insurance purchasing decisions for my clients. They are paying the premium, not me. They are the ones that have to live with themselves if they made a bad decision. My duty is to present my client as many quotes as I can obtain, explain them to my client, discuss the pros and cons of each one and let my client decide which policy is best for his needs. That does not always mean the least expensive policy will be selected or the most expensive will always be declined. During my 15 years as a contractor, I never had an agent bring me more than one quote. That was all I had to choose because that’s what the agent told me I needed or it was all I could get due this reason or that reason.

I have learned it is best to let the prospect/client make the purchasing decisions. Put the pressure on them to decide what is best for their company. They are the ones who are responsible for making the premium payment. It is my job to assist them in finding the carriers and assist in making an informed, educated decision about how best to protect their largest asset and income source. Once they decide, it then takes the pressure off me if they are unhappy with their selection in the future. I reassure them, at renewal, we can take a look at the other carriers I have access to for a better fit. I left my door open for possible future problems with the contractor’s selected carrier. “You are not pleased with the claims handling of XYZ Company, Mr. Client. Do not worry. I will help you get through this rough process and then begin looking at other options for you.” When I come back with 4 other options, the same process starts all over again. I will make the presentation outlining the pros and cons of each carrier and let him decide which one is best for his company’s needs.

When I present a client with 3-5 quotes, he knows I have put some work into this process. I did not take an application, send it to 3 companies, pick the one that pays the highest commission with the highest premium and make the contractor believe that I worked so hard getting this one quote. “By the way, this is the best quote I could find based your credit, claims experience, exposure, etc.” Hogwash! I show my client the commission on each quote so he knows I am an above-board Insurance Agent not sitting in his office taking advantage of him.

Contractors need shop for insurance like they shop for any other product. Obtain as many comparable quotes as they can within a reasonable amount of time. Have the agent(s) clearly explain the differences between all the quotes and carriers. If the contractor feels an agent is not being forthcoming or is unable to explain his products professionally, the contractor should take the time to find another agent. It is not just the policy a contractor is purchasing. He is also purchasing the agent through a commission. If the contractor is not comfortable with the agent, get rid of the agent.

The same goes for the agent. I feel it is important to have a comfortable yet professional relationship with my clients. If I feel I am being taken advantage of or a client is slow making his payments, I tell him, at renewal, to find a new agent because I do not feel we have a working relationship conducive to our business goals. If the contractor feels I have met his expectations or, especially, exceeded his expectations, he asks what we can do to keep the relationship and how we can make it better. At that point, I notify him that he is on a probationary period for the next year and if he does cooperate with any of my requests, I will not submit his renewal application next year. Amazing how well contractors respond.

A contractor purchasing an insurance policy is no different than anyone else who purchases any product in a store (not so much online). When we shop for anything, we want choices. We want to feel we made the best decision based on all the factors presented to us. Commercial General Liability Insurance is no different. Why should Contractors, or any business owner for that matter, settle for less in purchasing a Commercial General Liability Insurance policy than he would if he purchasing a television for his family? A few quality choices lead to better decision making no matter the product.

David Barnett, Sr. Vice President-Commercial Division
520.908.7866
david@bbtimail.com

What Is Liability Insurance

2009-08-21T15:08:00.000-07:00

If you own a car in America your state requires you to carry Liability Insurance. What is liability? Let's begin by defining the term "liable" as by Websters New World Dictionary:

1. Legally bound or obligated, as to make good any loss or damage that occurs in a transaction; responsible
2. Likely to have, suffer from, etc.; exposed to or subject to [liable to heart attacks]
3. Subject to the possibility of; likely (to do, have, get, etc. something unwanted or unpleasant)

The definition of "liability" is:
1. The state of being liable
2. anything for which a person is liable

How does this apply to auto liability insurance?

You are driving your car and hit another car from behind causing both property damage (the other car's damage) and bodily injury to the other car's occupant(s). So, according to the first definition of "liable" you are legally obligated to make good the damages you incurred to the other person. You are liable for their sustained property damages, bodily damages, hospital bills, doctor bills, loss of income/wages and any other expenses incurred due to your negligence.

So let's look at how insurance comes into play involving an auto accident. Insurance is transferring risk from the individual - you - to a company. You agree to pay a premium in exchange for money (liability limits) you are legally obligated to pay in the event you are found negligent for someon else's loss. You hit someones car and were determined to be "at fault" (AZ is an at-fault state). By paying the agreed amount of premium, the insurance is now obligated, on your behalf, to settle the claim of loss by the other party. You then agree to hand over all claims handling to the the insurance company. The insurance company will settle to their liking. That is what you agreed to when you signed the insurance contract/policy and submitted the premium.

How do you determine what are adequate liability limits for you and your family? Let's keep on with the above example. After you were determined to be negligent in an auto accident and the insurance company exhausted all of the liability money you agreed to in the policy (we will look at limits next) paying to replace/repair the other car and all medical bills associated with the accident, it was discovered that your limits were insufficient to pay for all the damages sustained. Now the claimant has the right to take you to court and sue you for the remaining monies your insurance policy did cover. The other party has the right ask for full disclosure of your assets, including current and potential income, to determine your ability to repay their remaining bills and expenses.

Arizona law allows the claimant/plaintiff to request up to 15% of your GROSS income be garnished until your obligation is paid in full. If you have liquid assets (cash, savings, retirement account, real estate equity), the plaintiffs attorney will likely go after those amounts first. So, as a rule of thumb, your liability limits should be sufficient to cover your current net worth.

How are limits offered by insurance companies? Arizona offers "split limits" with the minimum amount being 15,000/30,000/10,000. The first number is the maximum amount the policy will pay for each person's bodily injury. The second number is the maximum amount the policy will pay per each accident. The third is applied to property damage.

To explain in layman's terms using minimum liability limits: you hit a car and send 3 people to the hospital. Your policy limit for all of their injuries is $30,000 with a maximum of $15,000 to a single person. If the actual injuries exceed the $30,000 limit then they can sue you for the excess.

Your policy limit for the damages to their car is $10,000. If the repair/replacement of the car is greater than $10,000 then they can sue you for the excess amount.

As you shop for auto insurance comparing rates, keep in mind as the agent on the other end asks questions of your employment, lifestyle, and activities, he/she is not to prying into your privacy but rather determining what recommendations to make for your family's financial protection.

www.bigboytoyinsurance.com

Car Maintenance Tips

2009-08-19T13:47:00.000-07:00

We all have a car that we rely on to get us around town, back and forth to work and home, road trips to see family and friends, and the best of all uses...moving our stuff. When our car does not want to cooperate on a hot, sticky August afternoon, it can become a nightmare getting it back on the road. You do not have to be a certified mechanic to keep your car running well and performing great.

Here are a few things you can do to make sure your car keeps getting from point A to point B with little worry.

1. Tire pressure - this is the easiest of them all and if you have a rag in the trunk you won't get your hands dirty. Check your owner's manual for the proper pressure or if you do not have a manual, inside the driver side door jam will have your car's tire pressure and tire size information.

2.Oil Change - Arizona is extremely dusty and HOT. These two characteristics are the worst on engine oil break down. It is very important to change your engine oil AND filter every 3,000-5,000. Several shops around your area have weekly/monthly oil change specials for under $30.

3.Battery maintenance - All the auto parts stores (Auto Zone, Checkers, Pep Boys) will check your battery for FREE! No getting dirty or worrying about battery acid on your nice clothes. In our hot environment, batteries usually last 3 years. Auto Zone has a Gold level battery with a 3 year free replacement and a 7 year pro rated warranty. It works, I've used it and saved allot of money on a replacement battery.

4.Air Condition system pressure - I was at an auto part store last week and noticed a DIY A/C charging unit with R34 coolant for less than $35 complete with instructions. Otherwise, get into a shop and have the "top off" your A/C system if your car is over 5 years old.

5.Timing Belt/Water Pump - check your owner's manual, most manufactures recommend changing the timing belt every 60,000-100,000 miles. The timing belt and water pump are right there so most changes will take care of both. First hand experience with a timing belt breaking will cost several thousand dollars to have the engine replaced if you want to keep the car. Otherwise, the car is barely worth advertising for sale. Can you say...clunker? Make sure you get this done with a reputable shop so if they mess up you have recourse to get it fixed on the shop's dime.

6.Cooling System/Radiator - this is something you need to take to shop. Call around for pricing on this one. This a simple but environmentally unfriendly chore. Again, check your owner's manuel for recommended time when you need to replace your engines coolant/antifreeze. DIY - all you have to do is drain the old fluid and replace with new fluid while the engine is running so when the thermostat opens periodically, new fluid will flow into the engine block. It may take 30-45 minutes to refill depending on how hot/cold your engine is.

7.Brakes - When you hear your brakes squeaking, go to the shop and get the pads replaced and the rotors turned. The last you want is to have your brakes not work when you're traveling down the freeway at 70mph. Brake systems are easy to work with. If you get to a shop immediately after hearing the squeak, you should have no system problems. Brakes work from hydraulic pressure. As you press the brake pedal, pressure forces fluid through brake lines to the calipers. The calipers close together which closes the pads against the rotors. When the pads have worn down to the lowest possible level, a little piece of metal in the pad rubs against the rotor making the squeaking sound indicating time to replace the pads. Another way to check if it is time to replace your pads is look at the brake fluid reservoir. Remember, the brakes are a closed hydraulic system so as the pads get lower, so does the reservoir fluid.

8.Fuel injector cleaner - EASY! I like the Lucas oil cleaner. Auto Zone has a qt. size bottle for $10 and will last for 3-5 gas fill ups. It works and increases MPG!

Cars are great responsibility we tend to take for granted. A small of time and money can have great reward when it comes to keeping your car on the road and out of the shop. Most of us think of maintanence when it is too late and the repairs are for major part replacements which add up to high labor bills. When you figure the average shop charges $75 per hour, a 4 hour job cost you $300 PLUS the parts. If you take advantage of shop specials like oil/filter change, brake change, A/C charging before things break, it could save you and your car a lot of money and time NOT in the shop.

www.bigboytoyinsurance.com

How to Determine Insured Value for Your Vehicle

2009-08-14T18:20:00.000-07:00

What is the difference between actual cash value and agreed value when it comes to your vehicle insurance?

When you place insurance on a vehicle (auto, boat, motorcycle,RV) the issuing insurance company is agreeing to replace the vehicle, in the event of a total loss, at the current value of the vehicle. Say you own a 2002 Honda Accord EX that you purchased new. You are the original owner and have taken good care of the vehicle through regular maintenance, proper tire rotations, kept the miles low, etc. and then you are in an accident that totals the vehicle. The responsible insurance company will offer you what the current value of the vehicle is based on Kelly Blue Book and NADA value, not what it cost to buy a new 2009 Honda Accord EX. You didn't own a 2009 vehicle so why should replace a 7 year old vehicle with a brand new one? You are buying an Actual Cash Value insurance policy.

What if you own a '32 Ford Roadster that you've spent the past 4 years restoring and rebuilding it into your dream car? It turns heads and wins trophies at the car shows. Your neighbors ask you about what it took to get it into such good condition. You take it out only on special occasions. Your wife is jealous. Do you want it insured for Actual Cash Vale? Of course not!

You want an insurance policy that will pay you today's value of your blood, sweat and tears poured into that car. You want an Agreed Value or Stated Value insurance policy. If the vehicle is totally damaged you want the current dollar amount of all that work.

How do you determine the dollar value? The insurance company will agree to give you the appraised value of your cherry 32' Ford Roadster. They will base the premium on the value you agree on (up to the appraised value), how many miles you place on the car annually, and where the car is garaged or kept on a regular basis. Some companies, like Grundy and Hagerty, specialize in these unique insurance policies.

Motorcycles are treated a bit different because of the various accessories bikers like to add to their rides. This includes saddle bags, exhaust pipes, rims, seats and backrests. Custom paint jobs are considered modifications which require receipts to justify the value paid by the insurance company.

If your vehicle is 0-5 years old, some companies offer a "new car" replacement option. This states that if the vehicle in purchased new and is totaled within the first five years of ownership, you can receive the dollar amount needed to purchase a new year model of the same vehicle. This options usually requires an additional premium that needs to weighed against the value of the car to determine it's true value. This feature is a common option on RV policies through Foremost, GMAC Insurance, and American Modern.

So, before you take that Hot Rod out for it's maiden trip to the car show, make sure you have the right insurance policy insuring the right value.

www.bigboytoyinsurance.com

How to Beat AZ Photo Ticket Enforcement

2009-08-07T16:20:00.000-07:00

Have you received a photo ticket for speeding or running a red light? Wondering what to do? Nothing. That's right, do nothing. Do not respond to the mailed ticket, do not send money, do not call the court, do not schedule a court date, do not respond to any notices sent via mail.

Arizona Supreme Court states that we have to 'served' by an authorized process server. When the motorcycle cop pulls you over for speeding down Speedway at 45 MPH, he is your process server that you cannot fight. What you can fight is the validity of the circumstances for which he pulled you over. This is when you accept the scheduled court date and APPEAR! One idea is to reschedule the date in hopes the cop does not show up to defend his actions. The U.S. Postal Service does not qualify as an authorized process server.

Now, if a process server comes to your house to serve you your ticket, your caught. If you're home, answer the door. If you're not at home, oh well. He/she will have to come back to serve you at a later time. If you are caught, take the ticket and schedule your date in court. Worst case you'll have to pay the ticket plus a court fee. Be sure to ask the judge to expunge the ticket off your record if you agree to pay the fine and all court costs. You may be surprised what the judge will agree to.

I am not condoning speeding around town and running all the red lights you can. Eventually, the appropriate law enforcement agency will catch up with you as what happened to Francesca Cisneros in Scottsdale, AZ. She had collected over 60 tickets in 2006 for speeding and red lights. The police went looking for her at her place of employment. She was not there and called the number on the card left behind by the detective. She agreed to go to the police station and talk to the detective. That's when she got caught. Read the whole story 'Gotcha' by Ray Stevens.

Another method of beating the photo ticket game is if you have a vehicle registered to a company (corporation, LLC, PC) or a family trust.

Here's why: The police and courts may send process servers to visit the home of someone who blew off a mailed ticket. But they don't do the same thing for businesses. Lawyers say Arizona civil traffic violations can only be issued to a real, live person. Since the corporation can't be held liable, there's no reason to serve it the ticket.

Our local governments have found a means to collect more revenue to fill their empty coffers. Tax revenue at the lowest levels in decades, municipalities are scrambling to find ways to generate money without raising taxes. Photo enforcement is a nice way to supplement the loss in tax revenue. But, if the population decides that doing nothing until found is better than playing by the old rules, the municipalities that setup the photo radars may find that they are a waste of tax dollars they have tried to justify to to all of us tax payers.

www.bigboytoyinsurance.com

Is Auto Insurance the next Obamacare

2009-08-05T19:09:00.000-07:00

With all the buzz and controversy about President Obama's health care overhaul, could auto insurance be on the horizon? Most states already mandate all registered auto owners maintain insurance on their vehicles. Health care has been a hot topic since ex-president Bill Clinton's wife, current Secretary of State Hillary Clinton, made it a public issue back in 1995. Now it is on the table to have the Federal government take full control and mandate to individuals and businesses what is acceptable and authorized.

If the current Obama Administration takes control of our health care industry, what's to stop them from extending that control to auto insurance? We have seen their grip on two of the largest industries in America, banking and automobile manufacturing. If Obama wants to take over the private auto insurance industry, he is poised to to do so with little Congressional opposition.

Health insurance carriers are arguing that if the Federal Government gets into private under 65 health insurance, competition will be destroyed. How can a private company compete against a government? I am not a college History Major, but I do remember in the '80's when our steel industry was suffering against he Japanese steel market. Japanese steel manufactures perfected a better smelting process that was cheaper than the American steel producers could match. Due to a huge investment by the Japanese government into Japanese steel plants, American steel producers lost their competitive advantage. After American firms figured out what was happening, it was too late. Japan subsidized the process to make their manufactures more competitive on the world market. How could U.S. steel manufactures compete against a Foreign government? The U.S. Government felt the best way to protect the American Steel industry was to subsidize it, as well. This was competition against a foreign government.

I use this example to illustrate that if we revere Capitalism in this country, then what our own government is doing is the complete opposite of free market capitalism. Federal government is not an equal player in the capitalist model. The health insurance industry will be reduced to one or two carriers that, before long, will require federal money to stay in existence. With government money comes government dictation (Fannie Mae and Freddie Mac sound familiar).

If the Federal government can conquer the health insurance market, it will give them a model to use for the auto and home insurance markets. Insurance is a way of transferring risk from the individual or business to a company, not a government. If that was the case, every government in the world would administer their country's insurance needs. We have allowed our federal government to administer and regulate our Medicare system. It was setup in conjunction with our Social Security Administration in order for our elderly and disabled to have access to adequate monetary funds and health care. If we allow the government to continue down this road, we will open the door the government to control all of our insurance needs regardless of need or want.

http://www.bigboytoyinsurance.com/

Evidence, The Danger of Texting and Driving

2009-08-03T21:08:00.001-07:00

According to the account described below by the Accosiated Press, texting while driving is dangerous to all on the road. The following was published on August 3, 2009, by The Associated Press only days after the Federal Government recomended a Federal ban on texting while driving. If we do not take responsibility for our own actions, the government will do it for us. If you think your driving actions are wrong, they are. Drivers need to be aware while behind the wheel. Take a few minutes out of your drive to pull over and text, read email, read Mapquest on your Smartphone. You may save a life, if not your own.

"Police say a tow truck driver was texting on one cell phone while talking on another when he slammed into a car and crashed into a swimming pool.
Niagara County sheriff's deputies say 25-year-old Nicholas Sparks admitted he was texting and talking when his flatbed truck hit the car Wednesday morning in Lockport, which is outside Buffalo.
The truck then crashed through a fence and sideswiped a house before rolling into an in-ground pool.
Police say the 68-year-old woman driving the car suffered head injuries and was in good condition. Her 8-year-old niece suffered minor injuries.
Sparks was charged with reckless driving, talking on a cell phone and following too closely."

Texting While Driving, New Laws

2009-07-31T16:06:00.000-07:00

Sure, for some people it is tempting when they see a text message come through on their cell phone while they are driving, to respond right away. Waiting 5 minutes or more to let Sara know that you are free to go out Friday night or letting your spouse know that chicken sounds great for dinner, is seemingly too much to ask. However, a recent study released by the Virginia Tech Transportation Institute showed that long haul truckers that text while driving were 23 times more likely to be involved in an accident than their non-texting counterparts. This is compared to drivers being 6 times more likely to cause an accident if dialing on a cell phone than not. I think they would find that number even higher if they were to do a study of every day drivers in suburban traffic, where drivers have to deal with more stop and go, red lights, cars slowing to turn, etc…

What is surprising is that 36 States have not already banned this type of activity, including Arizona. In fact, the Arizona Senate voted against a bill to ban texting while driving in June 2009. Although, the Phoenix City Council did ban texting almost 2 years ago, within their jurisdiction.

There is now Federal legislation being discussed to try to enforce a texting ban in all States. While it would be up to the States to individually implement the bans, the Federal Government would make it difficult to ignore, by withholding 25% of Annual Federal Highway funding within the State if they choose not to comply within the timeline established. The legislation is being directed specifically at texting while the vehicle is in motion, not for stopped vehicles.

Personally, in the last month, I have had a vehicle run a stop sign in front of me, had a child on a bicycle swerve towards my car, and had a driver make a left hand turn across my lane as I entered the intersection with the right of way. Each of these incidents required a quick reaction on my part to avoid a collision. You can imagine that if I had been looking down at my phone trying to text, the outcome would have been very different.

Even if you believe yourself to be driving safely, remember that you have absolutely no control how other drivers are operating their vehicles.

www.bigboytoyinsurance.com

Health Insurance, Adverse Selection

2009-07-30T18:21:00.000-07:00

Americans have gotten spoiled over the past 50 years with the use and function of health insurance. In the 50's, Ford, General Motors, IBM, Coca Cola, US Steel and other large firms began offering health insurance and other insurances as benefits of employment with the respective firm. It became a one-up-manship within industries in order to attract and keep talented, qualified employees. As Americans, we came to expect health insurance as something you have through your employer and the employer took care of the premium. We had/have no idea of how much health insurance truly cost because we were not paying for it. Companies would richen the plan through low deductibles, low co payments and large provider networks in order to make "us" happy. It was not until we were laid off, terminated or quit our employer did we realize the true cost of health insurance. That alone was enough to get a resume out to any company that had was hiring.

Group health insurance plans are more expensive than individual plans due to one important factor-guaranteed issue. Group plans offer health coverage to all eligible employees regardless of current health or pre-existing conditions. If you had a heart attack last week and just started your new job this week, the health insurance has to accept you through the employers group health insurance policy and pay for the heart attack treatment. That increases the cost to the plan when it comes time for the insurance company to review the past years claims. If you had the heart attack before starting the new job, the health insurance company cannot decline coverage to you.

Individual policies, non employer sponsored plans, are not guaranteed issue because of Adverse Selection. If you were diagnosed with cancer today, had no coverage in place, then applied for insurance, you would be declined. Same as if you had no car insurance today, hit another car then went to an insurance agency to apply for car insurance requesting to have the insurance company pay for the damages you caused earlier. Insurance has to be in place at the time of the loss for the insurance to cover the loss. Insurance 101.

Insurance is important to our American way of life. It offers protection against the things we do not expect. However, it seems health insurance has become a naturalized right of all Americans. Unfortunately, it is not a right but rather a mechanism for protecting our assets from total or partial loss which we are responsible for paying on our own.

www.bigboytoyinsurance.com

Progressive Insurance, Behavior Insurance

2009-07-22T17:54:00.000-07:00

Progressive Insurance is introducing a new means of tracking their customers driving habits by having customers voluntarily install a device in their car(s) that track several driving characteristics such as braking frequency, braking severity, actual mileage and actual times in order to pinpoint rating models. The pilot program is being launched in Texas next month and they are offering an initial 10% rate discount to the first "trial" customers.

The intent of Progressive Insurance's new driver tracking device is to make insurance individualistic. By tracking customers driving habits to the exact degree, they can tailor rates to that specific customer without having to rely on the customers responses to underwriting questions or expensive databases.

Progressive will also use the information to predict frequency and severity of accidents in order to assist in reducing claims expenses. Insurance companies make money through two primary means: premiums and investments. Insurance companies spend money through two primary means: operating expenses (payroll, fixed expenses, supplies, etc.) and claims. If an insurance company can reduce claims expenses without raising rates, it increases profits without compromising market share. This is the ultimate goal of Progressive's new tracking devise.

We'll see how effective their new "gadget" will influence the rest of the private auto insurance market over the next 12 months. If they are able to increase profits without raising rates and other insurance companies take notice, then Progressive can call it a success.

http://www.bigboytoyinsurance.com/