The Insurance Family Blog

California Auto Insurance Claims Spike During Holiday Season

Posted by Susie Scherff on November 3, 2010 at 5:12 PM

With Halloween just barely behind us and an array of holidays ahead, Insurance Journal released some startling statistics regarding seasonal California auto insurance claims.

Statistics show that the number of people in California hit by cars jumps 25 percent on Halloween versus the rest of October. Insurers looked at claims involving pedestrians and found a significant increase in autumn accidents specifically around trick-or-treat time. Being that Halloween was on a weekend this year, the fear was that potentially even more children and cars would be on the road than usual. With already heightened claims filed due to texting, insurers warned clients, that whether they would be walking or driving with children, to be alert and refrain from distractions like their keypads.

Even though Halloween typically causes a scary spike in car-pedestrian collisions, it’s pertinent for individuals to keep an eye on the road during the upcoming holiday season. The combination of alcohol, family, and festivities all play a major role regarding the increase in auto accidents; thus leading to a major need for appropriate coverage. In addition to the fact that this is the season that most people are driving not only across the state, but in some regards across the country, to celebrate with family and friends, it’s no wonder the potential for accidents has always been huge.

Thanksgiving tends to an extremely busy time resulting in more vehicles are on the road than usual. However, December 10th still remains the most dangerous day of the year on record for Californians on foot near traffic.
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Topics: Auto Insurance

California Insurance Boosts Economy

Posted by Susie Scherff on October 28, 2010 at 5:09 PM

According to Insurance Journal, California has just under a $2 trillion thanks in part to a multi-billion dollar boost from the property/casualty insurance industry.

The California insurance report, written by the Insurance Information Institute and available on the Insurance Information Network of California Web site, found that:
  • California employs more insurance professionals than any other state. Property and casualty insurers provided 297,431 California jobs in 2008, or more than 10 percent of the nation's insurance workforce. California insurance jobs accounted for $20.7 billion in compensation. In the previous year's report of 2007 data, P/C insurers provided approximately 300,000 jobs in the state, accounting for $21.4 billion in compensation.
  • In 2009, property and casualty insurance claims payments totaled $28.7 billion in California, while life insurance claims and benefits payouts in California totaled almost $41.8 billion. P/C claims payments totaled $30.7 in 2007.
  • California collected $2.05 billion in premium taxes from insurers in 2009, nearly double that of the next leading state. In 2007, California collected $2.2 billion in premium taxes, nearly 15 percent of the national total.
  • There are more Auto Insurance Policies in California than in any other part of the country.
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Topics: Auto Insurance, Home Insurance

Important Information If You Own a Restaurant - Senate Bill 602

Posted by Susie Scherff on October 28, 2010 at 3:34 PM


If you own a restaurant you will need to become familiar with Senate Bill 602. This is the California Food Handler Card bill. This bill requires most of the state’s restaurant workers to be trained and certified in proper food handling by July 1, 2011. The legislation that created the law, Senate Bill 602, is aimed at reducing kitchen-to-table illnesses at California’s restaurants. A food handler is defined by the law as a person who is involved in the preparation, storage or service of food in a food facility. The Sacramento Bee reports that employees pay $15 for the program and the exam. The 2½ hour training program consist of a short course, either self-directed online or led by a trainer, and a test on the elements of food safety needed to handle and serve food, including:
  • Washing hands with soap and water before preparing food.
  • Thoroughly cooking meat and poultry.
  • Avoiding cross-contamination of food.
  • Reporting suspected food-borne illnesses to local health authorities.
Online courses will be available through The National Restaurant Association ( www.restaurant.org) and food safety website www.ServSafe.com. The food handler law was modeled after programs already in place for years in San Diego, Riverside and San Bernardino counties where foodborne illness outbreaks have decreased by 79 percent since the implementation of those measures, the bill’s backers said. These counties will be exempt from the new law. Others exempt from the law include certified farmers markets, school cafeterias and groceries and food facilities that provide in-house food safety training programs approved in other states and that are offered free during normal work hours. Food facilities subject to collective bargaining also are not covered, though the California Restaurant Association estimates that just 1-2 percent of the state’s restaurant workers are unionized. You can find additional information about this bill by going to the California Restaurant Association website www.calrest.org.
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Topics: California Restaurant Association, Senate Bill 602

New California Licenses and ID Cards to be Issued

Posted by Susie Scherff on October 25, 2010 at 5:05 PM

The California Department of Motor Vehicles (DMV) has announced they will start issuing a newly designed license said to be more secure. The design will be new for both California driver’s licenses and ID cards. The new cards will have security features, along with a different look and feel.

"The new security features, coupled with advanced technology, make California driver licenses and identification cards one of the most secure identification documents in the country," said DMV Director George Valverde. "We are confident that they will be well-received by residents, businesses and law enforcement officials."

The new cards are equipped with the latest in document security technology and have several features to protect them against tampering, fraud, and counterfeiting.

The same information as on a previous license or ID card will be printed but the new card will have easier readability. Some of the new features include:

- A vertical layout for persons under 21

- The cardholder's date of birth and signatures that can be felt by touch

- Images that can be seen only with the use of ultraviolet lights

- A 2D bar code on the back of the card that replicates and verifies only the information on the front of the card (similar to the current magnetic stripe)

- Laser perforation outline of the California Brown Bear, which can be seen from the front of the card when a flashlight is pressed against the back of the card.

For more information on the new driver license and ID card view the California DMV website. For your Los Angeles Auto Insurance needs check with Sutherland-Scherff for a policy quote.
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Topics: Auto Insurance

CA Wildfire Risk Map Hidden for Fear of Insurance Rate Hikes

Posted by Susie Scherff on October 21, 2010 at 5:02 PM

Officials in the city of San Marcos, California have been keeping a color-coded map showing the risk of wildfire danger a secret. Why? The officials believe showing the areas that are at the greatest risk will give reason for insurance companies to drop policies and raise rates.

City leaders told the North County times that a copy of the map which was circulated left out the shadings of “high-risk” and “extreme wildfire hazard” areas. Instead of differentiating sections based on risk, the circulated map just had green shading over any area that was at risk, not categorizing the risk from low to high.

Fire Chief Todd Newman, City Manager Paul Malone and other city officials said that the color-coded map was intended for internal planning use. It was never made public out of concerns that insurance companies would raise rates or cancel policies for Coronado Hills and Attebury residents, the two areas said to be at the highest risk.

The color-coded fire-risk ratings went from "low" and "moderate" to "high," "very high" and "extreme."

Coronado Hills and Attebury were rated "extreme." The communities of Solar, Esplendido, Rockoff, Via Allondra and Stone Canyon/Discovery Hills were rated "very high."

Nordahl, La Cienega, Tamara/Sunshine Mountain, Calle Marie, Rancho de Oro, Santa Fe Hills and La Plaza ranked "high." The city's five other communities ranked "low" or "moderate."

Be sure to check if your home is in a high risk area for a wildfire. If you find yourself at risk check fire insurance quotes at a San Marcos or Los Angeles Insurance Agency so your home and belongings will be covered in the event of a blaze.
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Topics: Home Insurance, Property Insurance, dwelling fire policy

California Budget Proposal to Effect Insurance Premiums

Posted by Susie Scherff on October 18, 2010 at 8:16 AM

California Governor Arnold Schwarzenegger’s proposal to inflict a 4.8 percent statewide surcharge on all CA Home Insurance and commercial property insurance premiums for fire suppression efforts was not fulfilled.

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Topics: Home Insurance, Commercial Property Insurance

Why is Restaurant Insurance Important?

Posted by Susie Scherff on October 14, 2010 at 10:11 AM

If outside power fails, what damage can that cause and to what extent can that potential financial loss be protected? Is your food covered for spoilage? Do you have adequate protection in the event of a liquor liability claim? Are you properly protected from a claim arising from a delivery of food? These are just a few of the questions you should think about.

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Topics: Business Insurance, restaurant insurance

4 Important Facts About Earthquake Insurance

Posted by Susie Scherff on October 13, 2010 at 10:09 AM

Most of us purchase a homeowners insurance policy to protect our home in the event of a fire, wind, theft or liability claim. We would be devastated if we lost our home in a fire, especially if we did not have insurance to cover it. But what about earthquakes? In an article in the Los Angeles Times titled “Earthquake experts see the ‘Big One’ getting bigger” they write that a “recent report suggests the southern San Andreas [fault] could rupture from Monterey County to the Salton Sea” and could “end up being bigger than earthquake experts previously thought”. A basic homeowners policy does not cover earthquake damage but coverage can be purchased as an endorsement or a separate policy. Clients often ask us…..Do I need it? Is it affordable? Is it worth purchasing? What does it cover? I hope to answer some of these questions for you.

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Topics: Home Insurance, Earthquake Insurance

Is Flood Insurance Necessary in California?

Posted by Susie Scherff on October 8, 2010 at 4:56 PM

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Topics: Flood Insurance

New Law for California Insurance Policies

Posted by Susie Scherff on October 7, 2010 at 4:51 PM

Legislation recently signed by Governor Schwarzenegger now mandates that all California insurers are now required to disclose cancelation penalties with an application for insurance.

The law previously stated that if a policy was canceled, rejected, rescinded, or surrendered, that the insured person under the policy was entitled to the return of their premium. The new law (AB2404) which will be in effect as of January 1, 2012, is requiring that any policy including a provision to refund a premium, including the assessment and cancelation fees, now must disclose in writing that it intends to do so. The disclosure must be written and sent to the new policy owner within 5 business days of purchase.

According to Steve Young of the general council for Insurance Brokers and Agents of the West, the law was changed to prevent an insurer from trying to impose a short-rate cancelation penalty that would not equal the administrative costs fined to the insurer as a result of policy cancelation.

The bill also authorizes the Insurance Commissioner to postpone a market conduct exam that is scheduled at least every five years for insurers. The exam can be postponed up to three years.
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