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Wind, Wind - Please Go Away!
Tree Coverages & Limitations
I really enjoy all of the comedians in the Blue Collar Comedy Tour. In particular, one of my favorite lines during Ron White’s act is, “It isn’t that the wind is blowin’, it’s what the wind is blowin’.” In 2011 we really experienced how true that statement was, as the wind sure did blow all across the United States. Hopefully, this year the winds will be calmer than last—keep your fingers crossed and your toes too!
Remember, tree debris removal coverage comes into play after the limb is removed from the structure and placed on the ground. There are two areas in the personal lines policies that address coverage and limitations for trees.
The first is under the Additional Coverage: Trees, Shrubs, Plants and Lawns—this portion of the policy provides coverage for trees damaged by fire, lightning, explosion, riot, civil commotion, aircraft, vehicles not owned or operated by an occupant of the residence premises, vandalism and malicious mischief or theft. Notice that wind is not a covered peril under this additional coverage. The coverage for a tree damaged by wind (and for some areas, just as prevalent would be weight of ice or snow) is found under the Additional Coverage: Tree Debris Removal. Under this coverage, the policy will pay for reasonable necessary expenses the named insured incurs for removing trees, limbs and branches from the residence premises if the loss is a result of a covered cause of loss and is not a peril listed in the prior paragraph under “Trees, Shrubs, Plants and Lawns.” The tree damage cannot be claimed under both coverages; it can only be one or the other, depending on what peril caused the damage. Coverage for trees can be found in the commercial property forms under Outdoor Property.
Purchasing a "New or Additional" Vehicle?
There is a lot of misinformation out there from car dealers/salespeople. It seems some may tell their customers who are purchasing a new vehicle (to them) that they are automatically covered on their current policy for 30 days. While in some cases this may be true - not all.
The Insurance Services Office (ISO), a provider of data, underwriting, risk management and legal/regulatory services to property-casualty insurers and other clients, recommends 14 days automatic coverage on a newly purchased vehile for the same coverage as exists on the current policy. Some companies deviate from this 14 days - it also varies depending on the situation. For example, if you have only liability (no comprehensive or collision), that changes to 4 days with typically a $500 deductible on each of those coverage's. Another situation where this is not the case is if a vehicle is purchased in the name (title) of a son, daughter, etc. They are not currently the "named insured" so there is no automatic coverage. Companies such as Progressive, for example, do not give this automatic coverage. This is why they have a 24 hr customer service help desk to add that vehicle on a weekend or evening after business hours.
Many years ago, the 30 days automatic coverage was provided to give the insured individual time to contact their insurance agent or company. In this age of electronic communication, insurance companies know this can now be done almost immediately.
Managing personal automobile insurance risks following death
When a married named insured on a personal auto policy dies, the coverage and rights of the policy usually transfer automatically to the spouse. But what about an
unmarried named insured? Who has rights on this policy? Is the common practice use of the car by family members covered? If not, what strategies should be adopted to avoid uninsured losses?
If you are not the legal representative for the deceased but are the agent for someone who has regular access to or use of the vehicle — either the legal representative or a different operator— add an “extended non-owned” endorsement to their personal auto policy (PAP), voiding the regular use exclusion. Also, this would provide the necessary underlying insurance for follow form umbrella coverage. If the car is given to a family member who will be inheriting the car after probate, such as the son or grandson, and if you are the agent already insuring this individual, you can add the deceased’s vehicle to your client’s auto policy and add the estate of the deceased as both an additional insured for liability and loss payee for physical damage (similarly to how you would insure a leased car). And once the title transfers to your client, you can remove the additional interest endorsements.Benjamin S., age 25 with a clean driving record, lost his grandmother, Maria (a widow), in October. The executor of Maria’s estate, Ben’s dad David, took possession of Maria’s car with the intent to eventually sell it off as part of her estate. Temporarily, also in October, David gave Ben permission to drive the car to and from work. In November, Ben caused an accident and was sued by the other driver. Maria’s auto policy was paid to the December 12 renewal date. Were David and Benjamin covered by Maria’s personal auto policy through ABC Insurance Company?
Not according to the adjuster. The adjuster denied the claim based on language in ABC’s and most personal auto insurance policies that, in the case of the death of the policyholder, coverage is provided for just two people:
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1- the surviving spouse (Maria was a widow); and
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2- Maria’s legal representative, her son David.
But, coverage only applied to the representative’s legal responsibilities to maintain and use Maria’s vehicle. Coverage does not apply to any other driver nor for anyone’s personal use, including David’s! David had no authority under the policy to loan the car to anyone, including his son Ben. And driving the car to and from work is not “maintaining or using” the car for “legal responsibility” purposes. Thus, the adjuster denied the claim. Neither the driver, Ben, nor his use was covered under Maria’s auto policy.
Most personal auto policies have one other restriction. Coverage will only be provided until “the end of the policy period.” There is no minimum number of days. So, in this case study, if Maria died on December 11, all coverage would cease at the end of that day (i.e., 12:01 a.m. on December 12). This hardly seems reasonable. What is “legal responsibility to maintain and use” your covered auto? “Legal responsibility to maintain and use” refers to coverage to drive the car to repair shops, oil changes, tire dealers, etc. A legal representative using the car for personal use is not permitted. Nor does the policy allow the legal representative to let others drive the car. The personal auto policy contains overly restrictive coverage limitations that aren’t consistent with what happens in the real world. In practice, when someone dies, it’s common for surviving family members to use the deceased’s car for personal use until the car is sold as part of the estate resolution. Not only does the deceased’s insurer not cover such use, but even the personal auto policies of family members won’t either! Non-owned auto coverage specifically excludes vehicles “furnished or available for your regular use.” Those policies also exclude your legal liability for damage you cause to the deceased’s car under the “care, custody, and control” exclusion.
Who needs coverage? Following a death with no surviving spouse, the following need coverage for the ownership of the deceased’s vehicle until it is sold: the deceased’s estate, the legal representative of the estate, and any possible drivers. If the vehicle is new enough to need collision and comprehensive coverage, the ownership interest of the estate needs to be protected for vehicle damage or theft as well.
My risk management advice:
If you are the legal representative for the deceased, here is what I recommend that you do to amend the deceased’s policy so coverage will be provided.
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Change the named insured on the deceased’s policy at death to the deceased’s estate (as the owner) and to the legal representative of that estate jointly.
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Use the legal representative’s mailing address for the policy.
That way, the legal representative can use the vehicle personally and, as co-named insured, can grant permissive use to others to use the vehicle. The estate is protected as both the owner of the vehicle for liability as well as for collision and comp losses. This change also ensures that the coverage won’t end at the next renewal date.
If you are not the legal representative for the deceased but are someone who has regular access to or use of the vehicle — either the legal representative or a different operator— add an “extended non-owned” endorsement to their personal auto policy (PAP), voiding the regular use exclusion. Also, this would provide the necessary underlying insurance for follow form umbrella coverage. If the car is given to a family member who will be inheriting the car after probate, such as the son or grandson, you can add the deceased’s vehicle to your auto policy and add the estate of the deceased as both an additional insured for liability and loss payee for physical damage (similarly to how you would insure a leased car). And once the title transfers to you, you can remove the additional interest endorsements.
Conclusion
The key to personal risk management is first and foremost to know the coverage pitfalls well enough to be able to identify where someone may be exposed to an uninsured loss under their insurance program. In this particular case, knowing the coverage pitfalls facing the survivors of the deceased’s personal auto policy is key to developing a strategy to circumvent those limitations so there will be coverage.
Business/Economy:
Small Business Employment Grows Rapidly
The job market is looking up and small businesses are reaping the benefits. Small business job recovery is encouraging because it implies growing demand within the U.S. economy. Read this article for more insights by Philip Noftsinger, business unit president for CBIZ Payroll Services.
Click Here to Read the Full Article by MSNBC.com
Check out the "Resource Center" in the left-hand column of this newsletter for interactive online tools that can help answer just about any industry related question.
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Brian Tracy Inspirational Article of the Month:
How to be Happy: 5 Steps to Living a Life You Love
Brian Tracy is a world-renowned personal and professional development coach that has helped millions of people achieve their goals and develop a positive mindset. Brian will be contributing to our newsletter every month by providing us with an article to help inspire you, our clients, to reach higher and achieve more than ever before.
Click Here to Read the Full Article by Brian Tracy
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Interesting Articles and Photos of the Month:
Lickable, Tasty Walls Installed Inside Company Elevator in London
Staff workers at a communications building in London have something more to do when they ride the company elevator. They can lick one of the 1,325 Jaffa Cake, a popular orange-flavored sponge cake snack, flavored stickers that line the walls. Would you give the world's first lickable elevator a taste test?
Click Here to Read the Full Article by NBCSanDiego.com
Netflix's Unlimited Employee Vacation Policy: Why It Works
Will extra time off improve company culture? Sure. But can giving workers all the time off they want also increase their productivity. Netflix is one of many companies to adopt an unlimited employee vacation policy where success is measured by what employees get done rather than on how many days they worked. Share this article with your co-workers and more importantly your boss and maybe your company will be the next to adopt an unlimited vacation policy.
Click Here to Read the Full Article by Mashable.com
Woman's Cancer May Have Been Fruit Pit from 1984
Bianca Riveron was struggling, as many Americans do, with lung trouble. After decades of coughing, asthma attack, and other problems, doctors had recently found a spot on her lung. Lung cancer is always the pits, but sometimes the pit isn't lung cancer.
Click Here to Read the Full Article by WTSP.org
Where Are The Flying Cars?
Call it keeping up with the Jetsons. After decades of dreaming of traveling via flying cars, we're one step closer to the goal. Terrafugia, a company dedicated to creating personal aviation solutions, has debuted their version of the flying car. The Transition, is the ultimate hybrid combining a car with a small private plane.
Click Here to Read the Full Article by StarTribune.com
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Videos of the Month:
Girl Swallowed by Pavement in China
Imagine walking down the street, chatting on the phone when suddenly the sidewalk opens under your feet and you fall 18 feet into the darkness under the street. That's exactly what happened to this poor woman in China. The accident was captured on a surveillance camera aimed at the street. You must see this video to believe it!
Click Here to Watch the Video by YouTube.com
Stressed Cat Had a Long Day At Work
A cat's life can be extremely stressful. Scratching furniture, playing with toys, sleeping, chasing laser pointers and being petted all day...Sounds rough right? The cat in this video unwinds by getting a neck massage. He's got to work out all those knots.
Click Here to Watch the Video by YouTube.com
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Delicious Recipe of the Month:
Spanish Chicken and Potato Roast
This recipe is delicious and full of flavor. The spice in the chicken mixed with the lemon juice makes for a perfect combination. This is a super easy recipe to make when you don't want to slave over a hot stove and the clean up is even easier. Everyone is sure to love this dish, perfect for Spring!
Click Here for the Full Recipe by FoodNetwork.com
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Dumb Criminal Story of the Month:
Obiwan Kenobi Arrested for Hit and Run
A California man who legally changed his name to match that of the fictional "Star Wars" hero may have given in to the temptations of the dark side of the Force, as he was charged with a hit-and-run. And as Yoda warned the fictional Kenobi, "Told you I did. Reckless is he. Now, matters are worse."
Click Here to Read the Full Article by YahooNews.com
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