Archive | July 2011
July 28, 2011  

Thai Life Insurance Commercial

I’ve been playing around with Google+ a little bit and one feature I have come to like is the “Sparks” link which basically brings you stories on the things you love from all across the Web. Using the keyword “insurance,” I found this heavy hitting Thai Life Insurance Commercial which really doesn’t hold anything back when striking at your emotions.

You don’t see commercials like this running in the U.S. on Sunday afternoon during a PGA tournament! However, it’s powerful. Do you have life insurance?

Here’s a great resource to start if you’re considering buying life insurance.

–JK

July 19, 2011  

Clean Up Your Mess!

I wrote insurance coverage for a commercial building earlier this year, property and general liability, only to receive a phone call a couple of months later from the carrier telling me that an inspection was done on the building and for lack of a better term, the premises was an absolute mess. It needed a fix quickly, or coverage was going to be cancelled short-term. The call took me by surprise so I decided to visit the property myself. Here’s what I discovered:

This was borderline hoarding. Storage was disorganized, with random articles stacked in solid piles up to the ceiling in some areas. There were no aisles and inadequate means of getting out from the storage area in the event of an emergency. Combustible material was stacked near an electrical switch, box, and panels, etc.

The loss control recommendation from the carrier: housekeeping. “There is excessive storage of combustible inventory and miscellaneous material throughout parts of the warehouse. Such arrangement of material (with 1 small walking path) could impede safe egress from the structure; The volume of closely packed material increases exposure to a rapidly spreading fire. The material also obstructs access to fire extinguishers and is stacked adjacent to electrical boxes and panels; The heavy fire load may not be controlled by the existing sprinkler system.”

The recommended solutions to this mess?

  • The inventory should be rearranged so all electrical boxes/panels have a 3′ radius free of combustible material.
  • The inventory should be rearranged to allow access to fire extinguishers.
  • The inventory density should be reduced to allow better access to storage areas and improved water distribution for the sprinklers.
  • Housekeeping should be improved and then maintained on a regular basis.

This is one of the most extreme examples of a disorderly premises that I have encountered. It doesn’t take an insurance professional to know that this is a severe property and general liability insurance hazard. There is absolutely no way of writing insurance with any carrier if you have a premises in this kind of shape. The risks are just too extreme. I’m not an obsessive compulsive neat freak by any means, but I ask myself if this insured has any bit of concern for protecting their assets? The point here is about risk management and risk reduction, not about making things look pretty at your home or business.

What type of housekeeping do you maintain at your home or business?

–JK

July 14, 2011  

Rodney King and DUI’s

The infamous Rodney King,  whose videotaped 1991 beating by police ignited the Los Angeles riots the following year, was arrested Tuesday afternoon in Southern California, suspected of driving under the influence. King was driving erratically and was taken into custody where he was evaluated and later arrested on suspicion of DUI of drugs or alcohol.  He was also convicted of DUI for a 2003 traffic stop where he was found driving under the influence of PCP.

Riverside County Sherrif's Department via AP

Let this be a lesson about the costs of getting a DUI. Everyone knows drinking and driving is dangerous, but most don’t think about the possible financial repercussions driving under the influence of alcohol or drugs.  You may have a few drinks at the bar, or even dinner for that matter and think no biggie, I just want to get my car home and avoid the cost of a $30 taxi ride.

Well think again before getting behind the wheel. $30 is chump change compared to what you’ll be paying if you get nailed for a DUI. From court costs, fines and attorneys’ fees, to traffic school, probation and higher insurance premiums, expect to pay $10,000 or more for the experience here in California. Not to mention a big pain in the arse dealing with the bureaucracies and other non-financial hurdles you must go through in the process.

From the moment you’re taken into custody, you start a running tab, and we’re not talking about a bar tab here. Each jurisdiction’s costs, fines and penalties will be a little different, but this is what you can expect if you’re suspected of driving under the influence of alcohol or drugs:

  • Your car will be impounded. You will be charged a towing fee and pay for the privilege of having the local authorities look after your vehicle while you get the mess sorted out. There could also be a vehicle release fee. The ticker starts at $250 or more just to keep your car in your possession.
  • You will need to post bail so that you may be released from custody until your first hearing. Your bail will vary depending on the county and circumstances surrounding your arrest, but can range from a few hundred to a few thousand dollars. If you don’t have that kind of cash on hand, you will call a bail bondsman. Bail bondsmen will typically ask for 10 percent of the total bond. If your bond is $5000, you’re still going to have to come up with $500 quickly.
  • On a first offense DUI conviction, you will be fined not less than $390, and not more than $1,000, excluding court fees.
  • California requires 96 hours of jail time if you’re convicted of a DUI, 48 of which much be served consecutively. Many judges allow this time in work service. All of this will likely result in some time off work, and for many people lost time means lost wages. DUIs remain on your criminal record for life if employers or future landlords do a background check.
  • You will get a minimum of 3 years probation.
  • Your insurance carrier may place a surcharge on your auto insurance policy for up to three years. However, because a DUI stays on your driving record for 10 years in California, a driver with a DUI will not be eligible for a good driver discount for up to 10 years.
  • Pay a license re-issue fee of at least $125. To get your license back you will probably have to complete an approved alcohol education and treatment program at your own expense.
  • If you get your license back it will likely be restricted and you may be required to install an ignition interlock device, also at your own expense. An ignition interlock device (IID) is wired to your vehicle’s ignition and requires your breath sample before the engine will start. If the IID detects alcohol on your breath, the engine will not start. As you drive, you are periodically required to provide breath samples to ensure you haven’t taken a drink since beginning your journey.

Next time you’re out enjoying adult beverage’s, don’t let the alcohol do the thinking when it comes time to close your tab and leave the bar. Just print this blog post out and put it in your purse or back pocket to remind you the list of troubles you’ll be dealing with should you get caught for a DUI. Not to mention the danger you’ll put others in if you get behind the wheel. Case in point…..Rodney King.

Source: Insurance Information Network of California 

–JK

July 1, 2011  

Happy 4th of July!

To everyone, I hope you all have an awesome 4th of July! It’s a good time to enjoy a long weekend in the sun. Whether you’re at the beach, in the pool, or just kickin’ it at home, have a blast.  Be sure to take a moment to reflect and give thanks for being able to live in freedom in this great country of ours. This Independence Day we celebrate America’s 235th birthday. As we enjoy all the traditions, don’t forget about those who have done so much to secure and safeguard our independence throughout our history.

As they say, have a SAFE and SANE holiday weekend. Take it from these people:

–JK