Why do I have to add my son to my insurance if he does not own a car?

When your son becomes licensed most insurance companies will require you to place him on your auto insurance policy as a driver since he will likely drive your vehicle and thus require coverage.

The Florida Office of Insurance Regulations backs up this idea. Here it says young drivers must comply with the state's financial responsibility laws, just as older drivers do. Most young drivers, however, have the option of satisfying their legal requirements by being added to their parents' auto policy. Adding a young driver to a parents' policy can be expensive, but it's cheaper than taking out a separate auto policy.

A parents' policy covers children living at home or away at school, even when not named on the policy. Even though children are automatically covered on their parents' policy, it's important that they be listed on the policy as soon as they reach driving age. Insurance companies are required to charge the correct rate, based on the classifications of the drivers in your family. If you do not have all of the drivers in your family listed on your policy and the company learns about them later - because of an accident claim, for instance - the company will bill you for the extra premium you should have paid.

While a friend may occasionally borrow your car and be covered they do not normally have regular access to your car and thus are not rated as a risk factor on your policy. If you do have someone outside of the household that regularly drives your car then normally an insurance carrier would also want this person listed an occasional driver so they would be properly covered in an accident.

Also not all policies provide coverage to anyone that drives the car. Policies can have driver exclusions. These exclusions can include those under a certain age (under 21 or 25 for instance), unlicensed drivers and those driving under the influence to name a few.

Insurance providers thus require you add your teen since he or she lives in your household and is a risk factor to them. Most all state laws permit an insurer to consider all resident operators of an insured vehicle in rating of an auto insurance policy. This includes your child, even if he or she has only a learner's permit and especially when they have a full driver's license.

Insurance companies are usually allowed to use classifications that reflect a possible exposure for liability on the part of the insurer, in the event that bodily injury or property damage occurs due to the operation of the vehicle by anyone in your household, including your child.

Many parents would like to avoid the rate increase from adding their licensed teenager to their auto insurance policy however if you do not inform your insurance provider of your child's licensing status and he or she is in an accident, the incident may not be covered. In some states an insurer may be allowed to cover the accident but then charge you for the premiums you should have paid up to that time for the teen to be on the policy.
Also in some states purposely not reporting your licensed driver to your insurance carrier and have him or her added as a driver can be construed as misrepresentation, a form of insurance fraud.

Teen drivers are expensive to insure since they are inexperience and often immature drivers that statistics have shown are more apt to be in accidents. There are ways in which to help bring down the rate increase from adding a teen to your insurance policy. You can ask your agent about discounts for your child getting good grades (a good student discount), taking a driver's education or driver's improvement class, and any other discounts that your specific insurer has available for you to take advantage of such as a multi-car discount.

If you need to add a teenager licensed driver to your car insurance policy then you may want to shop around at this time to make sure you and your family are getting the best rates possible.

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Florida Homeowners Insurers Seek ‘Flex-Rating’ Up to 15%

The Florida Senate and Banking Insurance Committee recently approved a bill that would give homeowners insurers some latitude, allowing them to raise their rates without first getting approval from the state insurance department. The bill would let insurers increase their rates by a statewide average 15 percent above their current rate. The bill caps increases on individually policyholders so that their rates are no higher than twice the statewide average.

The role of the Office of Insurance Regulation (OIR) would be limited to reviewing the rates to see if they are inadequate or discriminatory.
Under current law, every property insurer in the state must make an annual rate filing with the OIR, which may either approve or disapprove the rates to ensure that they are not excessive, inadequate or unfairly discriminatory. Although lawmakers in recent years have streamlined the process, it can still take months to resolve the filings, especially if they are disputed.

In cases like this is when you need an independent insurance agency like E&S Insurance. We will always look for the best price for our clients.

For more information contact me.

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Florida Lawmakers Take Two-Pronged Approach to Insurance Reform

Tort reform and fraud have become the two big targets as Florida lawmakers are finally gearing up to tackle the state’s no-fault auto insurance law.
Taking a divide and conquer approach, the House Insurance and Banking Subcommittee has approved a bill that seeks to rein-in medical and litigation costs, while two other lawmakers have unveiled a bill designed to crack down on fraud.

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The best response is a planned one.

Emergencies come in many forms and often without much warning. Whether you’re faced with a hurricane, wildfire or some other threat, advance planning can make all the difference.

Don’t be surprised.

Be prepared.

Ten steps to keep you, your family and home safe and sound:

1. Start with the right homeowners insurance protection. Visit http://www.es-insurance.com/.

2. Know your community’s severe weather warning system and follow news reports closely.

3. Identify escape routes from your home and neighborhood.

4. Research the evacuation plans for your workplace and children’s schools.

5. Designate an emergency meeting place for your family.

6. Decide in advance where you and your pets can take shelter if necessary.

7. Establish a contact point to communicate with concerned relatives.

8. Take video and photographs of your home inside and out, recording upgrades and valuables.

9. Have drinking water and an emergency kit stocked and ready to go.

10. Fill your bathtub with water that can be used for flushing toilets or washing.

Feel free to contact me.
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Soultions, Service, Stability!

E&S Insurance offers a full range of Homeowners and dwelling fire insurance solutions. Call on of our agents or contact me directly. We are are ready to assist you in selecting your individualized coverage.

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Something I found In Insurance Journal

Something I found In Insurance Journal.

Are you an insurance news hound? Test your insurance news IQ and find out. The following questions and answers (at bottom of the page– don’t cheat!) were developed based on news stories published by InsuranceJournal.com in 2010. Good luck!

1. During the year, Congress let the National Flood Insurance Program lapse several times. The last vote extends the NFIP until when?

1. Jan. 31, 2011
2. Sept. 30, 2011
3. Dec. 31, 2013
4. Sept. 30, 2012

2. What state had the highest number of Internet fraud complaints in 2009?

1. Florida
2. Texas
3. New York
4. California

3. About how much of its $182 million bailout does AIG still owe U.S. taxpayers?

1. $100 billion
2. $50 billion
3. $25 billion
4. $0

4. Who won the November election to be the next Georgia insurance commissioner?

1. Ralph Hudgens
2. John Oxendine
3. Wayne Goodwin
4. Kevin McCarty

5. The nation’s largest insurance brokers received the go-ahead to begin accepting contingent commissions again in 2010. But which of the following large brokers said they would not resume accepting them?

1. Aon
2. Marsh
3. Willis
4. All of the above

6. The attempted takeover of what company by Texas-based based Biglari Holdings Inc., owners of the Steak n Shake restaurant chain, prompted a new Michigan law requiring that a perceived hostile takeover of a small insurer be approved by two-thirds of the shareholders?

1. Michigan Insurance Co.
2. Fremont Michigan InsuraCorp.
3. Northern Mutual Insurance Co.

7. In 2010, which of the following insurance entities announced and then cancelled plans for an initial public offering of one of its units?

1. Allstate
2. Liberty Mutual
3. AIG
4. ISO

8. How many managing agencies at Lloyd’s had gross written premiums in excess of $2 billion in 2009?

1. 2
2. 3
3. 4
4. 5

9. Under the Obama federal health care reform, medical malpractice insurers will lose their limited exemption from federal anti-trust laws.

1. True
2. False

10. Who won the November election to be the next California insurance commissioner?

1. Mike Villines
2. Dave Jones
3. Steve Poizner
4. Jerry Brown

11. How much did oil giant BP set aside to pay claims from the Gulf of Mexico oil disaster?

1. $20 billion
2. $100 billion
3. $75 billion
4. $200 million

12. How much have the world’s insurers and reinsurers paid out in catastrophe claims so far this year?

1. More than $10 billion
2. More than $20 billion
3. More than $30 billion
4. More than $40 billion

13. For the years 2006 through 2010, Florida property insurers will have paid an estimated $2 billion in claims for what?

1. Fires
2. Hurricanes
3. Sinkholes
4. All of the above

14. Which of the following insurance firms fended off a mini-tender offer by an outside firm looking to buy 2 million shares?

1. Harleysville Insurance
2. Chubb Insurance
3. Markel Insurance
4. Willis

15. In July, Ohio Attorney General Richard Cordray negotiated a settlement in long-running securities fraud lawsuit with insurer American International Group on behalf of three Ohio pension funds. Under the terms of the July settlement, AIG agreed to pay:

1. $10 Million
2. $1.5 Billion
3. $725 Million

16. What was the workers’ compensation industry’s combined ratio for 2009?

1. 110
2. 101
3. 98
4. 103

17. New York, under fire for tough workers’ compensation requirements for out-of-state businesses, agreed to ease some of its rules for businesses that do only occasional, non-construction work in the state.

1. True
2. False

18. In which South Central state will an insurance agent be installed in January as lieutenant governor?

1. Louisiana
2. Oklahoma
3. Arkansas

19. Which insurer said it warned federal officials about safety problems with Toyotas as far back as 2007, years before the carmaker’s massive recall in 2010?

1. State Farm
2. Allstate
3. Progressive
4. Travelers

20. Voters in which state rejected a measure to privatize the state’s workers’ compensation system??

1. Washington
2. Oregon
3. Arizona
4. California

21. Unless the provision in the federal health care law is repealed before it goes into effect in 2012, businesses will be required to file a so-called 1099 form identifying anyone to whom they pay at least how much in a year?

1. $60,000
2. $6,000
3. $600
4. $60

22. The Georgia Supreme Court in 2010 heard arguments on the constitutionality of the state’s law setting caps on medical malpractice awards. What did the court decide?

1. The law constitutional
2. The law is unconstitutional
3. The law is constitutional but the amounts are too low
4. The question is a political one for the Legislature, not the courts, to decide.

23. Louisiana Gov. Bobby Jindal in July signed a bill that prohibits insurance companies from dropping homeowners insurance coverage for insureds that have a particular product in their homes. That product is:

1. Vinyl flooring
2. Chinese manufactured drywall
3. High VOC paint

24. Last May a volcanic eruption grounded flights in Europe for several weeks. Where was the volcano located?

1. Italy
2. Indonesia
3. Georgia
4. Iceland

25. Despite requests from brokers, the California State Compensation Fund refused to modify its policy on paying commissions on direct accounts where there is a broker of record letter.

1. True
2. False

Answers: 1. B, Sept. 30, 2011; 2. D; 3. A, $100 billion as of November; 4. A; 5. D; 6. B; 7. B; 8. B, there were three – Catlin, QBE and Beazley Furlonge; 9. B; 10. B; 11. A; 12. C; 13. C; 14. B; 15. C; 16. B; 17. A; 18. C; 19. A; 20. A; 21. C; 22. B; 23. B; 24. D; 25. B

Best Affirms Progressive and Subs ‘A+’ Rating

A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A+’ (Superior) and issuer credit ratings (ICR) of “aa” of the Progressive Agency Pool, Progressive Direct Pool and Progressive Commercial Auto Group (collectively known as Progressive) and their respective members.
Best also affirmed the FSR of ‘A’ (Excellent) and ICR of “a+” of National Continental Insurance Company, as well as the ICR of “a” and all debt ratings of the parent holding company, The Progressive Corporation.
The outlook for all of the ratings is stable. All the companies are headquartered in Mayfield Village, Ohio.
The ratings reflect Progressive’s “solid capitalization, strong operating performance and sustainable competitive advantages,” said Best. “Progressive’s capitalization has benefitted from sustained underwriting profitability and a rebound in its investment portfolio since 2008.
“Progressive continues to benefit from an innovative management team, brand name recognition, a multiple channel distribution platform and innovative underwriting and claims handling technology. In addition, Progressive’s direct operations have exhibited favorable growth, reflective of improved brand recognition.

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