Insurance Blog

By Tanya Mohn/NY Times

Driving while drowsy and falling asleep at the wheel are responsible for more deadly crashes than previously thought, according to a new study released on Monday.

An estimated one in six fatal crashes — nearly 17 percent — involves a drowsy driver, which is about four to five times higher than previous studies have found. And drowsy drivers are involved in one in eight crashes that result in serious injury, the report found.

“People need to be honest with themselves, be aware of the symptoms and recognize the dangers of driving while drowsy,” said Peter Kissinger, president and chief executive of the AAA Foundation for Traffic Safety, a nonprofit research and educational organization that conducted the study.

Being sleep-deprived decreases awareness, slows reaction time and impairs judgment, similar to the impact of drugs or alcohol, said Mr. Kissinger. “People often overestimate their ability to deal with it,” he said.

The study was based on the AAA Foundation’s 2010 Traffic Safety Culture Index, a nationwide telephone survey of 2,000 residents in the United States, conducted earlier this year by Abt SRBI Inc., and new in-depth analysis of crash data from 1999 to 2008 from a National Highway Traffic Safety Administration database.

The report found that 41 percent of respondents admitted to falling asleep or nodding off while driving at some point in their lives. One in 10 acknowledged doing so in the past year. More than a quarter (27 percent) of those surveyed admitted that in the previous month they drove despite being so tired that they had difficulty keeping their eyes open.

“That’s just a really scary scenario,” Mr. Kissinger said.

The study is being released in support of Drowsy Driving Prevention Week (Nov. 8 to 15), sponsored by the National Sleep Foundation.

Thomas J. Balkin, a sleep researcher and chairman of the National Sleep Foundation, said sleep-related crashes were likely to be severe. People “tend to have worse crashes because they didn’t do anything to mitigate the crash,” like hitting the brakes or steering away from a collision.

Dr. Balkin said there is some suggestion that people are more sleep deprived than 30 to 40 years ago, when the average amount of sleep was about eight hours a night. Today, it is about seven hours. “People on the lower end, who get about five to six hours a night, pose a danger to themselves and others,” he said.

“People think that by rolling down the window or turning up the radio they will be able to offset drowsiness and make it to where they are going,” he said. “But they lose touch. When we’re sleepy, we know we’re sleepy, but the process of actually falling asleep, we’re not good at identifying that.”

It’s something Rusty Burris, 38, of Columbia, Mo., wished that he had paid more attention to.

“When your body reaches its breaking point, you have no control over it. You’ve got to stop,” said Mr. Burris, who at age 18 fell asleep at the wheel about a mile from home after having been awake for more than 36 hours. Mr. Burris was paralyzed from the chest down when his car hit a driveway embankment and flipped over.

“It doesn’t matter how many times you do it and get away with it,” he said. “It’s that one time you don’t. You pay for it for the rest of your life.”

Tips to remain alert and identify symptoms, and the full report can be seen at AAAFoundation.org.

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Insurance provides financial security for millions of Washington residents and makes a major contribution to the economy across the Northwest. At the most fundamental level, insurance is the foundation for economic interaction and nearly all commerce.

"Insurance makes it possible to buy a car or a home, start a small business and build communities, said Karl Newman, president, NW Insurance Council. "Insurance also provides quality employment opportunities to thousands of Washingtonians."

Among businesses, insurance companies are the second highest contributor to the Washington State General Fund. The insurance industry contributed more than $5.2 billion to the Washington State gross state product (GSP) in 2007, accounting for two percent of the state GSP.

Insurance companies headquartered both here and in other states, employed 50,727 Washington residents in 2007 and brought more than $3.2 billion in payroll income into state and local economies, according to the U.S. Bureau of Labor Statistics.

In 2008, insurers paid more than $415 million in premium taxes to Washington State government, including primary funding for the State Fire Marshal's Office.

"Insurers help fuel Washington's economy," said Newman. "Insurance companies doing business in Washington help make state and local projects a reality by purchasing a significant number of municipal bonds."

Insurer premium taxes and bond investments directly finance construction and maintenance of critical public services such as roads and bridges, schools and affordable housing.

Property & Casualty (P&C) insurers purchased $14.6 billion in Washington municipal bonds in 2005. That equals 31percent of outstanding government debt throughout the state. Washington was fifth among all states in municipal bond investments by P&C insurers, despite ranking only 18th in the nation in total P&C premium volume.

Only Texas, California, New York, and Illinois ranked higher than Washington. In fact, Washington led all 50 states in the ratio of municipal bond investments to direct written premiums, with P&C insurers investing 1.6 times more in municipal bonds than they collected in premiums in the state ($13.7 billion to $8.6 billion respectively for 2005, according to A.M. Best data).

Property/casualty insurance companies doing business in Washington totaled $9.1 billion in direct premiums written. In addition, life/health insurers totaled nearly $10.7 billion (including life insurance, annuities, accident and health insurance, deposit type funds and other considerations).

"Perhaps most importantly, insurance companies are there when policyholders need them most - helping Northwest residents recover from accidents, illnesses and other personal and commercial insured losses," Newman said.

In 2008, P&C insurers paid $5.0 billion to Washington residents and businesses, including $2.2 billion for auto losses, $1.9 billion for commercial losses and more than $724 million for homeowners' claims. Life insurance claims and befits payouts in Washington totaled $7.8 billion in 2008.

Insurance claim payments support local businesses, enabling them to provide jobs and pay taxes that support the local economy.

These businesses include the auto parts and repair industries, the building construction and supply industries, health care services and legal services.

For more on how insurance companies support local and state economies, check out
"A Firm Foundation: How Insurance Supports the Washington State Economy or contact NW Insurance Council at (800) 664-4941.

Sources: American Insurance Association, A.M. Best, Insurance Information Institute and U.S. Census Bureau.

Freezing temperatures, ice, snow and wind can devastate homes and businesses if they are not properly winterized. Don’t wait for temperatures to dip below freezing before you take action. Now is the time to protect your home from Old Man Winter.

Winter storms are the third-largest cause of property loss in America, resulting in about $1.2 billion in insured losses annually, according to the Insurance Information Institute.

Winter weather-related losses such as burst pipes, wind damage, ice dams, frozen gutters and damage caused by the weight of ice or snow are covered under standard Homeowners Insurance policies. Damage caused by flooding is specifically excluded under standard home and business insurance policies. Flood Insurance can be purchased through the National Flood Insurance Program.

By winterizing your home or business you also can eliminate many inconveniences caused by weather-related losses.

“Even when you have insurance, the hassle of waiting for your home to be repaired can be a dark cloud over your plans,” said Karl Newman, NW Insurance Council president. “It takes some work, but it’s definitely worth the effort to winterize your home.”

Shut the door on Old Man Winter and protect your home or business by following these easy, do-it-yourself tips:

• Be disaster ready. Learn how you can protect your home and family from natural disasters that are common to your region. Visit www.GetReadyNW.org for more information.
• Maintain gutters. Remove leaves, pinecones, sticks and other debris from gutters so melting snow and ice can flow freely. This can prevent ice damming, which can push melting water under the roofing and into your attic. You may also consider installing gutter guards. Available at most hardware stores, gutter guards are screens that prevent debris from entering the gutter and blocking drainpipes.
• Trim trees and remove dead branches. Ice, snow and wind can cause weak trees or branches to break – damaging your home or car.
• Check insulation. Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic, it can cause snow or ice to melt on the roof. The water will re-freeze, allowing more snow and ice to build up. This can result in a collapsed roof.
• Prevent frozen pipes. Wrap pipes with pipe insulation or heating tape and insulate unfinished rooms such as garages that have exposed pipes. Also, check for cracks and leaks. Repair them immediately to prevent much costlier repairs.
• Keep your house warm. The temperature in the home should be at least 65 degrees. The air inside the walls where pipes are located is substantially colder than the walls themselves. A room temperature below 65 will not keep pipes from freezing.
• Get to know your plumbing. Learn how to shut off the water and know where your home’s pipes are located. If pipes freeze, you may be able to prevent the pipes from bursting by taking immediate action. Quickly shut off the water and direct your plumber to the problem.

For more information on winterizing your home, or for a free copy of Surviving Severe Cold Weather, contact NW Insurance Council at (800) 664-4942.

Halloween festivities are sure to bring plenty of chills and thrills. However, it could quickly turn into a nightmare if you do not take time to carefully plan for the evening’s activities.

Candles, frightened pets and wet or poorly maintained walkways all can prove dangerous to your family and trick-or-treaters.

“Protecting yourself, your family and guests starts with making sure you have Homeowners Insurance with high enough limits of liability to protect your financial assets,” said Karl Newman, NW Insurance Council president. “After that, homeowners should take every reasonable precaution to ensure that their homes are safe for residents and guests.”

Injuries to guests are covered under the Liability portion of your Homeowners Insurance policy. Most homeowners’ policies start with liability limits of $100,000.

However, regardless of the season, you may want to consider purchasing at least $300,000 worth of liability protection and adding an Umbrella Policy. In many cases, you can purchase up to 10 times more liability coverage for an additional several hundred dollars per year.

Your policy also provides “no-fault” medical coverage. In the event a friend or neighbor is injured in or around your home, he or she can submit medical bills to your insurance company up to the limit you’ve chosen – generally from $1,000 to $5,000. This allows payment of smaller medical expenses without needing to file a liability claim.

However, it’s important to note that medical coverage only applies to guests and does not pay medical bills for you, your family or your pets.

NW Insurance Council offers these common-sense tips to help you avoid the negligence ghouls and safeguard your family, home and trick-or-treaters this Halloween night:

• Ensure safe walkways by raking or sweeping leaves and other debris away from porches, decks, sidewalks and driveways.
• Trim low-hanging branches over walkways.
• Keep walkways well lit.
• Keep pets away from approaching trick-or-treaters. Some pets may get excited or hostile when encountering children dressed in costumes.
• Keep candles away from all combustible and heat-sensitive items. Make sure they are displayed on stable surfaces and out of reach of children and pets. Extinguish candles before leaving a room.

If you’d like more information about your Homeowners Insurance policy or your liability limits, contact your insurance company or agent.

While sunshine continues to fill the Autumn skies, believe it or not, now is the time to consider purchasing Flood Insurance if you live in or near a flood plain.

Standard Homeowners and Business Insurance policies do not cover losses caused by flooding. However, everyone at risk for flooding should investigate Flood Insurance made available through the National Flood Insurance Program (NFIP).

Waiting for flood waters to rise before getting Flood Insurance could be a risky proposition because there is a 30-day waiting period for new Flood Insurance policies. This means any flood damage to your home during the 30-day waiting period will not be covered.

NFIP studies show that people living in flood plains are 27 times more likely to experience a flood during their 30-year mortgage than they are to experience a fire. If you’re in an at-risk area, it makes sense to investigate your options.”

Residents living in or around flood plains are encouraged to review their Homeowners and Flood Insurance policies now before flooding take place.

King County Flood Warning offers free Flood Alerts to King County residents to help them stay abreast of flood warnings for local rivers. Residents can subscribe for Flood Alerts by visiting King County’s website.

NW Insurance Council, NFIP and the Institute for Business and Home Safety offer these tips as you consider purchasing Flood Insurance to protect your home during the long rainy season:

• Be disaster ready. Learn what disasters you’re at risk of experiencing in your region and how to prepare your family and protect your home and belongings.
• Find out if you are located in a floodplain and if your community participates in the NFIP. Contact your city or county government. Start with the Building or Planning Department and ask to see the Flood Insurance Rate Maps published by the Federal Emergency Management Agency to determine your Base Flood Elevation.
• In low-to-moderate flood risk areas, coverage is available for as little as $100 per year. The average premium in high-risk areas is about $400 per year.
• If you are at risk for flooding, buy as much flood coverage as you can. Primary residences insured for at least 80 percent of their value, or for the maximum amounts allowed, get replacement cost coverage.
• There is normally a 30-day waiting period from the time a policy is purchased until you are covered.
• Become familiar with your community’s disaster preparedness plans and create a family plan ahead of time before a flood threatens.
• Develop an emergency kit that includes a three-day supply of drinking water and food you don’t have to refrigerate or cook. The kit should also contain first aid supplies, a weather radio, batteries, clothing, blankets, medicine, copies of your insurance policies and some basic tools.

President Obama late Thursday signed into law legislation extending the National Flood Insurance Program until Sept. 30—averting what would have been another shutdown of the program.

Without the President’s signature, the program would have expired at midnight Thursday. The NFIP has lapsed three times this year. It has become a political football because it is more than $18 billion in debt, as noted by David Sampson, president and CEO of the Property Casualty Insurers Association of America.

“While this bill was an important first step, Congress will still need to address meaningful NFIP reforms in 2011,” Mr. Sampson said.

There is also broad disagreement over how far reforms should go, including the phasing in of market-based rates and whether wind should be added to the program.

The bipartisan extension bill, S. 3814, was sponsored by Senator David Vitter, R-La., and co-sponsored by Sens. Mary Landrieu, D-La.; Bill Nelson, D-Fla.; Lamar Alexander, R-Tenn.; Saxby Chambliss, R-Ga.; Kay Bailey Hutchinson, R-Tex.; and Johnny Isakson, R-Ga.

Leigh Ann Pusey, president and CEO of the American Insurance Association, noted that the latest extension is long-term, rather than the prior pattern of short-term extensions and lapses that have plagued the NFIP.

“With the program now in place for another year, there is now the opportunity to tackle the larger, more fundamental reforms with federal policymakers like NFIP subsidies and the mapping of flood plains," Ms. Pusey said.

The Independent Agents and Brokers of America (IIABA) issued a statement saying the extension “will provide much needed stability and security for the NFIP and its five and a half million policyholders.”

But, Robert Rusbuldt, IIABA president and CEO, said it’s also important to note “that our work with this program is far from over.”

NU Online News Service, Oct. 1, 11:03 a.m. EDT
President Obama late Thursday signed into law legislation extending the National Flood Insurance Program until Sept. 30—averting what would have been another shutdown of the program.

Without the President’s signature, the program would have expired at midnight Thursday. The NFIP has lapsed three times this year. It has become a political football because it is more than $18 billion in debt, as noted by David Sampson, president and CEO of the Property Casualty Insurers Association of America.

“While this bill was an important first step, Congress will still need to address meaningful NFIP reforms in 2011,” Mr. Sampson said.

There is also broad disagreement over how far reforms should go, including the phasing in of market-based rates and whether wind should be added to the program.

The bipartisan extension bill, S. 3814, was sponsored by Senator David Vitter, R-La., and co-sponsored by Sens. Mary Landrieu, D-La.; Bill Nelson, D-Fla.; Lamar Alexander, R-Tenn.; Saxby Chambliss, R-Ga.; Kay Bailey Hutchinson, R-Tex.; and Johnny Isakson, R-Ga.

Leigh Ann Pusey, president and CEO of the American Insurance Association, noted that the latest extension is long-term, rather than the prior pattern of short-term extensions and lapses that have plagued the NFIP.

“With the program now in place for another year, there is now the opportunity to tackle the larger, more fundamental reforms with federal policymakers like NFIP subsidies and the mapping of flood plains," Ms. Pusey said.

The Independent Agents and Brokers of America (IIABA) issued a statement saying the extension “will provide much needed stability and security for the NFIP and its five and a half million policyholders.”

But, Robert Rusbuldt, IIABA president and CEO, said it’s also important to note “that our work with this program is far from over.”

He said, “Congress now has a year to work on a long-term extension and much needed permanent reforms such as an increase in maximum coverage limits and the addition of optional business interruption insurance.”

He also said that in the past Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace.

“Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies (NAMIC).

“However, the extension only maintains the program ‘as is.’ The NFIP is in serious financial trouble, and a simple extension such as this one will not help make the program self-sufficient or sustainable.”

NAMIC has called for a long-term extension of the NFIP coupled with specific reforms to improve its financial outlook, including a phasing out of premium subsidies for non-residential and secondary residences.

NAMIC has also called for the modernization of flood plain and elevation mapping, incentives for mitigation programs and stronger penalties for financial institutions that fail to ensure that borrowers obtain coverage for properties.

He said, “Congress now has a year to work on a long-term extension and much needed permanent reforms such as an increase in maximum coverage limits and the addition of optional business interruption insurance.”

He also said that in the past Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace.

“Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies (NAMIC).

“However, the extension only maintains the program ‘as is.’ The NFIP is in serious financial trouble, and a simple extension such as this one will not help make the program self-sufficient or sustainable.”

NAMIC has called for a long-term extension of the NFIP coupled with specific reforms to improve its financial outlook, including a phasing out of premium subsidies for non-residential and secondary residences.

NAMIC has also called for the modernization of flood plain and elevation mapping, incentives for mitigation programs and stronger penalties for financial institutions that fail to ensure that borrowers obtain coverage for properties.

NU Online News Service, Oct. 1, 11:03 a.m. EDT
President Obama late Thursday signed into law legislation extending the National Flood Insurance Program until Sept. 30—averting what would have been another shutdown of the program.

Without the President’s signature, the program would have expired at midnight Thursday. The NFIP has lapsed three times this year. It has become a political football because it is more than $18 billion in debt, as noted by David Sampson, president and CEO of the Property Casualty Insurers Association of America.

“While this bill was an important first step, Congress will still need to address meaningful NFIP reforms in 2011,” Mr. Sampson said.

There is also broad disagreement over how far reforms should go, including the phasing in of market-based rates and whether wind should be added to the program.

The bipartisan extension bill, S. 3814, was sponsored by Senator David Vitter, R-La., and co-sponsored by Sens. Mary Landrieu, D-La.; Bill Nelson, D-Fla.; Lamar Alexander, R-Tenn.; Saxby Chambliss, R-Ga.; Kay Bailey Hutchinson, R-Tex.; and Johnny Isakson, R-Ga.

Leigh Ann Pusey, president and CEO of the American Insurance Association, noted that the latest extension is long-term, rather than the prior pattern of short-term extensions and lapses that have plagued the NFIP.

“With the program now in place for another year, there is now the opportunity to tackle the larger, more fundamental reforms with federal policymakers like NFIP subsidies and the mapping of flood plains," Ms. Pusey said.

The Independent Agents and Brokers of America (IIABA) issued a statement saying the extension “will provide much needed stability and security for the NFIP and its five and a half million policyholders.”

But, Robert Rusbuldt, IIABA president and CEO, said it’s also important to note “that our work with this program is far from over.”

He said, “Congress now has a year to work on a long-term extension and much needed permanent reforms such as an increase in maximum coverage limits and the addition of optional business interruption insurance.”

He also said that in the past Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace.

“Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies (NAMIC).

“However, the extension only maintains the program ‘as is.’ The NFIP is in serious financial trouble, and a simple extension such as this one will not help make the program self-sufficient or sustainable.”

NAMIC has called for a long-term extension of the NFIP coupled with specific reforms to improve its financial outlook, including a phasing out of premium subsidies for non-residential and secondary residences.

NAMIC has also called for the modernization of flood plain and elevation mapping, incentives for mitigation programs and stronger penalties for financial institutions that fail to ensure that borrowers obtain coverage for properties.


National Underwriter
By ARTHUR D. POSTAL
Published 10/1/2010