Automobile insurance protects consumers, their loved ones and their property. It is an absolute “must” to safeguard investments, pay for medical expenses in case of an accident, provide financial protection against lawsuits, and cover losses caused by uninsured or underinsured drivers. More importantly, it is required by the law in most states. The responsibilities of owning and driving an automobile include purchasing automobile liability insurance. It is important that licensees educate consumers about automobile insurance in order for the consumer to understand what coverage the insurance company offers for his/her protection and what coverage best meets the consumer’s needs and fulfills any requirements under the law.

A consumer needs to be able to make an informed decision about the type of policy to invest in. A consumer must have auto insurance that is sufficient to meet the motor vehicle financial responsibility laws of their state.

In most cases, this means coverage for bodily injury, property damage, liability and possibly uninsured motorist coverage. Each auto policy is unique to the state in which the licensee is located. This course will explore various types of personal and commercial vehicular insurance.

In this section we provide links to articles on state driving laws dealing with speeding, auto insurance (including SR-22 information), cell phone use (also known as. Learn about Immigrant IDs and driver's licenses in Arkansas today. Quickly find answers to your Immigrant IDs and driver's licenses questions with the help of a local lawyer. What are the chances of getting full custody of my child and child support from an illegal alien. My husband and I have been separated for 2 years.

It will also discuss fraud, safety issues and highlight specific issues and demonstrate how individual states address the issue. In law and economics, insurance is a form of risk management primarily used to hedge against the risk of contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium. (Wikipedia 2007) In return for payment of the premium and subject to all the terms of an automobile policy, the insurance company provides the coverages and limits of liability for which a premium is shown on the policy in the Declarations section. The insurer is the company that sells the insurance.

The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management is the practice of appraising and controlling risk, and has evolved as a discrete field of practice. Risk management is the process of measuring, or assessing risk and developing strategies to manage it.

Strategies include: v transferring the risk to another party v avoiding the risk v reducing the negative effect of the risk v accepting some or all of the consequences of a particular risk. Traditional risk management focuses on risks stemming from physical or legal causes (e.g. Natural disasters or fires, accidents, death, and lawsuits). Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Risk is an Unavoidable Fact of Life In every area of our lives we are continuously surrounded by risk. While the various policies we own cannot prevent a loss, they can, and do, provide financial recovery from those losses. Insurance is meant to protect the insured, their loved ones, and possessions, from the monetary risks we face every day.

History of Insurance The origins of automobile insurance evolved from marine insurance in ancient China. Marine insurance is as old as marine trade dating back to 3000 B.C. Early merchants that traded on the rivers in China utilized a form of loss control involving deliberately spreading a certain cargo throughout several ships to reduce the chances of a potential total loss of cargo.

Ancient Babylon It was in ancient Babylon where the earliest record of insurance can be found. It was called bottomry, which was a practice of advancing the money on the security of the ship to protect against potential perils of the sea. Traders whose cargoes were advanced by merchants were thus protected from debt in the event that the cargo was lost.

20% was the customary figure of money advanced in bottomry. This practice continued throughout the Mediterranean Region and followed by the Romans who used a percentage of 12% advance money. Ancient Greek and Phoenicians Another marine insurance term was used by Greek and Phoenician traders in ancient times. It was called “General Average”. Any cargo that was salvaged or able to be saved by the property owners was kept by the owner of the property. Next came the guilds.

The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized the guilds known as benevolent societies that cared for families and paid funeral expenses of members upon death. Danish navigators began forming guilds whose role was to indemnify its members against losses at sea. The same era also found the first premiums in marine insurance. The merchant cities like Venice and Florence in the Mediterranean began a widespread act of utilizing extensive written documents and utilized the principles of mutual insurance against the loss of pillage through contribution. 13 th Century The basic concepts of marine insurance were brought by the Lombards to northern Europe and England in the 13th Century.

14th Century The oldest marine policy known to have been issued was on a ship named the Santa Clara. The oldest policy document in existence was dated April 24, 1384 and covered four bales of textiles on a journey from Pisa to Savona. Separate insurance contracts (insurance policies not bundled with loans or other types of contracts) were invented in Genoa, Italy in the 14 th Century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in the marine insurance discussed here. 15th Century It was in China where cargo ship owners would meet with investors before setting sail to the “new world” in the colonies across the Atlantic Ocean. The owners of these ships would occasionally lose a ship either by piracy or the ship sinking.

The group of investors took the gamble of insuring the ship and cargo would make it safely in exchange for a premium consideration. 17th Century Insurance became much more sophisticated in post-Renaissance Europe and specialized varieties began to be developed. Near the end of the 17th century, London’s growing importance as a center for trade increased demand for marine insurance. By the 17th Century, London, with the emergence of Lloyd’s of London Association, had developed into a leading center for marine insurance. In England, friendly societies existed in the late 17th Century that functioned with people donating certain amounts of money to a general sum that could be used for emergencies. The well-known Lloyd’s of London traces its roots to a coffee shop founded by Samuel Lloyd in 1688 and became a popular meeting place for the transaction of insurance business among ship owners, ship captains, underwriters and merchants. It became a reliable source for current news for the shipping industry.

People went there seeking to insure cargo as well as underwrite cargo. Insurance as we know it today can be traced back to the Great Fire of London in 1666. It burned 13,200 houses (wikipedia.org 2007). After this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England’s first fire insurance company called The Fire Office to insure frame as well as brick homes.

18th Century By 1734, the official list of ships and values known as the “Lloyd’s List” was first published. More than 250 years later, it continues to serve as the leading shipping list in the marine insurance industry. In 1769, underwriters took their informal arrangements and founded the organization known today as Lloyd’s of London. Ten years later, the first standard policy wording was developed for use at Lloyd’s. (Progressive Insurance Online 1999). The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (Charleston, SC) in 1732.

Ben Franklin made the use of insurance a standard practice, especially for fire hazards in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss of Fire. Franklin’s company was the first to make contributions toward fire prevention.

Download Aplikasi Kamera Tembus Pandang Pakaian E63. It refused to insure buildings if the risk of fire was too great. For example, wooden houses were thought to be too much of a risk.

19th Century v The 19th century saw a rise in the government regulation of insurance in the United States. V In 1895 a group of Norwegian immigrants formed the Sons of Norway, a fraternal insurance organization, which continues to this day. V There were active efforts in the 19th Century to establish insurance operations — for protection as well as for generating capital. 20th Century v The 20th century saw further specialization and, in the United States, a bit of deregulation that allowed other financial institutions, such as banks, to offer insurance.

The ever-increasing ability of science to predict catastrophes of any measure or variety continues to affect the way insurance is conducted. V McCarran-Ferguson Act. Federal law signed in 1945 in which Congress declared that states would continue to regulate the insurance business. Grants insurers a limited exemption from federal antitrust legislation. V Until the mid-1960s, most drivers who did not meet an insurance company’s “standard” or “preferred risk” underwriting criteria could only find coverage in the shared market, where prices are generally much higher and insurers pool or share the profits and losses. With advancements in computer technology that made it easier to set appropriate prices for smaller and smaller risk categories, some insurers began to specialize in insuring drivers with marginally bad driving records.

V GAP coverage or GAP insurance, was established in the early 1980s to provide protection to consumers based upon buying and market trends. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection.

V In the early 1990s, the concept of pure no-fault, which prohibits most lawsuits for bodily injury, began to garner support. Pure no-fault addresses several societal concerns: the waste of resources and the inequities in the liability system and the need to have affordable coverage for medical care and rehabilitation costs. V By the late 1990s the nonstandard market accounted for about one-fifth of the total private passenger auto insurance market. (iii.org 2007) 21 st Century Between 1996 and 2005: v claim frequency fell 17.8 percent for bodily injury claims and 11.5 percent for property damage claims. V Claim severity increased steadily, rising 16.9 percent for bodily injury claims and 27.4 percent for property damage claims.

In 2004: v Automobile insurance covered 175 million automobiles in 2004 in the U.S. V Based on 2004 data from the National Association of Insurance Commissioners (NAIC), 77 percent of insured drivers purchase comprehensive coverage in addition to liability insurance, and 72 percent buy collision coverage. In 2005: v claims accounted for $68 of every $100 earned in private passenger auto insurance premiums in the United States. V Lawyers’ fees accounted for $11 out of every $100 in premiums. Half of the fees went to plaintiffs’ attorneys and the remainder to defendants’ attorneys. V Theft accounted for about 25 percent of the dollars that go to pay comprehensive claims, or 2 percent of premiums earned for private passenger auto insurance. In 2007: According to Insurance Information Institute, the average expenditure for automobile insurance is expected to drop by 0.5 percent in 2007 to $847, the first decrease since 1999.

Many states are looking at use of cell phones while driving, especially in teen drivers Today: Lloyd’s of London remains the leading market for marine and other specialist types of insurance, even though it works differently from other familiar types of insurance. In the United States, regulation of the insurance industry is the primary responsibility of individual state insurance departments. Insurance markets have become centralized nationally and internationally, but state insurance commissioners operate independently most often. The state insurance commissions at times do work in conjunction with national insurance commissioners and their organizations though. Recently, some have called for a dual state and federal regulatory system for insurance similar to that which oversees state and national banks.

The Basics of Automobile Insurance Losses from property damage, medical and legal costs, and lost income add up to billions of dollars annually for automobile mishaps. Automobile insurance plays an important role in protecting consumers from serious financial losses that can result from such accidents. The 6 basic types of auto insurance coverage include: 1. Bodily Injury Liability. Pays your legal defense costs and claims against you if your car injures or kills someone. Covers family members living with you and others driving with your permission.

Property Damage Liability. Pays your legal defense costs and claims against you if your car damages another’s property. Does not cover your property, including your auto. Medical Payments or Personal Injury Protection. Pays medical expenses resulting from an accident for you and others riding in your car.

Also pays for you or your family members injured while riding in another’s car or while walking. Pays for repairs of damage to your car caused by a collision with another vehicle or any other object, regardless of who was responsible. Comprehensive Physical Damage. Pays for damages to your car resulting from theft, fire, hail, vandalism, or a variety of other causes. Uninsured or Underinsured Motorist. Pays for costs related to injuries or property damage to you or your family members and guests in your car caused by an uninsured, underinsured, or hit-and-run driver.

Covers other people’s bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it’s a good idea (and usually a company requirement) to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy.

Coverage is limited to the terms and conditions contained in the policy. It is mandatory in most states. You also receive liability protection for most types of trailers used with your automobile. It further covers other people’s expenses for accidents caused by drivers covered under your policy, up to your policy’s dollar limits. These may include the other person’s medical and funeral costs, lost wages, and compensation for pain and suffering car repair or replacement costs auto rental while their car is being repaired punitive damages awarded by a court.

Bodily Injury Costs Recent increases in bodily injury severity reflect higher hospitalization, pharmaceutical and legal costs. There are additional payments that are available under this coverage. Certain claims expenses, attorney expenses and fees, some court costs and interest on a judgment may be covered, subject to policy provisions. Liability coverage can make up more than half your auto premium. This coverage is subject to policy exclusions. For policy exclusion details, the consumer should consult the policy, or contact the issuing Agent. Policy limits are expressed as applying to “each person” or for “each accident” and are subject to the limits purchased and shown on the Policy Declarations.

Who’s covered? V Policyholder v Other drivers covered by the policy v Passengers v Persons given permission to drive your car How much protection does this coverage provide? If the other driver involved in an accident is underinsured, this coverage typically pays any difference between what the other driver’s insurance covers and what your bodily injury coverage will pay. The coverage limits refer to the maximum amount that will be paid per person, per incident, respectively.

If the limits you purchase are lower than an accident’s costs, you’ll be responsible for paying the amounts over your limits, unless you’re covered by health insurance. The dual coverage limits refer to the maximum amounts that will be paid per person, per incident, respectively. Essential things to keep in mind when selecting your Bodily Injury limits: If you select limits that are too low, you could be putting yourself at risk financially.

For example, if either you or a driver covered by your policy cause a serious injury where damages exceed your limits, you will be held responsible for the amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk. Who might benefit from buying uninsured motorist bodily injury coverage? Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, the insured may be responsible for paying the additional amount. This liability covers the insured if their car damages someone else’s property.

Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.

Coverage is limited to the terms and conditions contained in the policy. How much protection does this coverage provide? The coverage limits refer to the maximum amounts that will be paid per accident.

Essential things to keep in mind when selecting your Property Damage limits: If you select limits that are too low, you could be putting yourself at risk financially. For example, if either you or a driver covered by your policy cause a serious accident where damages exceed your limits, you will be held responsible for the amount above your limits. To make that payment, you could be forced to liquidate property, savings and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk. Liability Coverage v Liability insurance pays attorney fees if you are sued and bail up to a certain amount if you are arrested.

Covers: v family members and other people driving your car with your permission, even if they don’t have their own liability insurance and are not named on your policy. You and your family members also are covered when driving someone else’s automobile - including a rental car - but not a car that you don’t own but have regular access to, such as a company car. V away from home and a spouse living elsewhere during a marital separation also are covered. Who qualifies as a family member? Your auto policy covers your spouse, blood relatives, in-laws, adopted children, wards, and foster children living in your home, even if not named on the policy.

Family members attending school Case Example: Liability If Kaitlin drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, Kaitlin also may become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company).

Limits of Liability Coverage Liability coverage is available either as a combined single limit policy or as a split limit policy: v Combined Single Limit. A combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, Michael has a combined single liability limit and strikes another vehicle and injures the driver and the passenger.

Payments for the damages to the other driver’s car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage. V Split Limits. A liability coverage policy splits the coverages into property damage coverage and bodily injury coverage.

In the example with Michael given above, payments for the other driver’s vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage. Note that bodily injury liability coverage is also usually split as well into a and a. Covers the insured’s medical and hospital bills (within policy limits) if they are injured in a car accident. It will also cover medical bills (within limits) of any passenger in their car. Medical Payments Coverage Pays: Medical and funeral bills arising from accidents, including those in which the victim was a pedestrian or a bicyclist. Covers: The insured, their family members, and passengers in their car, regardless of who caused the accident.

First Party Benefits - Medical First Party Benefits (FPB) cover several areas of insurance coverage; however, this definition is for First Party Benefits-Medical. Similar to medical payments coverage and Personal Injury Protection, FPB helps pay for your medical expenses if you or relatives living in your household are injured in an accident. Specific limits and coverages vary by state, but typically these services include: v Related medical and surgical treatment v Essential rehabilitative services (physical therapy, speech pathology, etc.) v Necessary dental, psychiatric, psychological, and optometric treatment v Ambulance and nursing service v Required medications, medical supplies, and prosthetic devices Who’s Covered? First Party Benefits-Medical provides coverage to the policyholder, drivers listed on the policy and relatives living in the same household as the policyholder. How much protection does this coverage provide?

Total payments covered by FPD are the limits indicated. That is the maximum amount that will be paid per person for any combination of covered expenses. Medical Payments: There may also be coverage if, as a pedestrian, a vehicle injures you. Medical payments may also cover policyholders and their family members when they are injured while riding in someone else’s car or when they are hit by a car while on foot or bicycling. Coverage is limited to the terms and conditions contained in the policy.

This coverage pays reasonable medical expenses that are incurred within a specific time period from the accident date. Coverage applies up to the limits for you or any persons injured in your automobile, regardless of who is at fault. Who might benefit from buying Medical Payments coverage? If you and your regular passengers already have health insurance that covers similar expenses, medical payments coverage may be unnecessary. Check your health insurance policy for details.

Accidental Medical Protection Plan: Covers you (or family under a Family Plan) while driving or riding in any private passenger vehicle. Defined accident medical expenses are paid directly to you without a deductible.

No-Fault Insurance Also called Personal Injury Protection (PIP) Coverage PIP only pays medical bills and lost income up to the limits of the policy. If the no-fault insurance does not cover all expenses, the driver at fault can be sued in some states. In Pennsylvania and New Jersey a hybrid form no-fault system known as “choice no-fault” exists. In these states the insured may choose: v to be insured under a strict no-fault plan, in which case the insured is unable to sue the driver at fault in the accident. Likewise, the insured cannot be sued if he or she is at fault. V not to take out no-fault insurance and be able to sue other drivers that are at fault. On the other hand, the insured can still be sued if they are at fault.

(See Chapter 5 for Specific States with No-fault requirements) An insurance company must offer a consumer a minimum PIP amount if available, but more can be purchased. If the consumer does not want PIP, they must reject it in writing. Covers within the specified limits: v the medical expenses v hospital expenses v funeral expenses of the insured, others in his vehicles v pedestrians struck by the insured v the insured’s own injuries on a first-party basis, without regard to fault Who’s covered? V Policyholder v Policyholder’s relatives in the same household v Passengers v Other authorized drivers Policyholder and family members if they are injured while riding in someone else’s car or as a pedestrian when struck by another vehicle. (in some states) How much protection does this coverage provide?

Total payments covered by PIP are indicated in the policy. The policy states the maximum amount that will be paid per person for any combination of covered expenses (some states offer limits and others set it to an amount like $10,000). Specific limits and coverages vary by state. Who might benefit from buying additional medical coverage along with PIP? PIP may be needed by people who do not have health insurance that adequately covers potential medical expenses or people who carpool or frequently drive with passengers.

Collision insurance pays for damage to the insured’s car caused in a traffic accident. Collisions that result in serious and fatal occupant injuries are relatively rare. Vehicles with high death rates often have high frequencies of insurance claims for occupant injuries. For example, small 2- and 4-door cars typically have high death rates and higher-than-average insurance injury claims.

Some vehicles (e.g., sports cars) can have low injury claim frequencies but a high relative rate of severe or fatal injuries because of the manner in which they are driven. Collision covers damage to the car when the insured’s car hits, or is hit by, another vehicle, or other object.

It pays to fix the vehicle less the deductible chosen by the insured. For older cars, consumers should consider dropping this coverage, since coverage is normally limited to the cash value of the car.

Coverage is limited to the terms and conditions contained in the policy. This is not required by the state, but if the consumer has a loan or a lease then the lien holder will require it. A higher deductible can substantially lower the cost of insurance premiums. The agent can discuss this savings and help the consumer set the deductible against the ability to absorb a larger out-of-pocket expense. To keep the premiums low, the licensee should recommend as large a deductible as the consumer feels comfortable paying out-of-pocket.

Who might benefit from buying Collision coverage? V If a car is financed or leased, the finance company will probably require that collision coverage. V If the consumer has a newer vehicle or one in excellent condition, the agent may need to recommend this coverage to replace or repair the vehicle in case of loss. Collision coverage pays for loss or damage to your automobile caused by collision or upset, regardless of who is at fault. After a loss occurs, the insured must take reasonable steps to protect the vehicle from further loss.

Towing and reasonable storage cost will be paid until the insurance company offers a settlement. Collision Pays: The cost of repairing or replacing the vehicle after an accident, regardless of who was driving or who was at fault. Payment is limited to the car’s actual cash value, minus the deductible.

Actual cash value is the market value of a car similar to the wrecked vehicle before it was damaged. Comprehensive Coverage This coverage pays for accidental loss or damage to an automobile for most other causes except collision or upset. The most common causes are weather (such as wind, hail, and flood), theft, vandalism, riot, fire, explosion, falling objects, or glass breakage. Damage to your car resulting from colliding with birds or an animal is also included. Coverage is included for a transportation allowance for the amount shown in the policy if the insured car is stolen.

This coverage is normally subject to a deductible. It pays to fix the vehicle less the deductible chosen. Coverage is limited to the terms and conditions contained in the policy.

Comprehensive is not required by the state, but if you have a loan or a lease then the lien holder will require it. Who might benefit from buying Comprehensive coverage? V If your car is financed or leased, the finance company will probably require that you carry this coverage.

V If you have a newer vehicle or one in excellent condition, you may need this coverage to replace or repair the vehicle in case of loss. Comprehensive Pays: The cost of replacing or repairing the car if it is stolen or damaged by fire, vandalism, hail, or another cause other than collision.

Comprehensive coverage also pays for a rental car or other temporary transportation if the car is stolen. As with collision, the policy will not pay for an auto theft unless you report it to the police. Payment is limited to the car’s actual cash value, minus any deductible.

Collision/Comprehensive Both coverages are subject to exclusions and limitations as outlined in the policy. Physical changes caused by wear and tear, freezing, mechanical breakdown, or parts failure are not covered. Some added equipment, parts, or special paint may not be covered, or are subject to a dollar limit unless optional coverage is purchased. Losses under these coverages are for the current value of the automobile adjusted for depreciation. Keep in mind that any losses incurred under this coverage is for the current value of the car, adjusted for depreciation. Uninsured Motorists This coverage pays legally collectable damages if the insured is killed or injured in an accident with an uninsured automobile.

This coverage does not cover property damage. This coverage should be purchased to protect the insured from those who may not have purchased insurance, as required by law. Coverage limits apply to “each person” and to “each accident” as shown on the Policy Declarations. Exclusions apply to Uninsured Motorist coverage. For policy exclusion details, the insured should consult the policy, or contact their Licensee. Uninsured Motorist Bodily Injury Uninsured Motorist Bodily Injury covers the insured, the insured members of their household and their passengers for bodily/personal injuries, damages or death caused by an at-fault uninsured or hit-and-run driver.

If the insured is involved in an accident where the other driver is at fault but has no insurance, the policy will cover medical expenses, up to the limit on the policy. Uninsured Motorists Property Damage This coverage pays legally collectible damages for loss or damage to your automobile caused by an uninsured automobile. How much protection does this coverage provide? If a person does not have Collision coverage, Uninsured Motorist Property Damage coverage pays up to a certain amount for repairs to the insured car (some states have limits at $3500, some are lower and some are higher).

If the insured has Collision coverage, Uninsured Motorist Property Damage coverage only pays the insured’s Collision deductible (in some states). Does this coverage replace Collision coverage? Uninsured Motorist Property Damage alone is not enough to cover all potential car repair/replacement costs, and only applies if you are involved in an accident caused by a driver without insurance coverage. Who’s covered?

V Policyholder v Other drivers covered by the policy v Passengers How much protection does this coverage provide? If the other driver involved in an accident is uninsured, this coverage pays up to the limit purchased. The coverage limits refer to the maximum amount that will be paid per person, per incident, respectively.

Who might benefit from buying uninsured motorist bodily injury coverage? Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, the insured will be responsible for paying the additional amount. Uninsured and Underinsured Motorist Coverage In states where Uninsured Property Damage is not offered, companies usually just define Uninsured Motorist/Bodily Injury as Uninsured Motorists, without the added extension of Bodily Injury (BI) because there is no other Uninsured Motorist offered in that state. Underinsured Motorist Underinsured Motorist Property Damage: v Covers when property damage is sustained by an insured and the negligent operator possesses insurance, but the limits of liability carried by the negligent driver are not sufficient to cover the damages. Underinsured Motorist Bodily Injury: v Underinsured Motorist Bodily Injury (UMBI) covers the insured, the insured members of their household and the passengers for injuries, damages or death caused by the negligence of a person with insufficient insurance. If the insured has an accident with a person whose coverage cannot meet all damages, the insured’s policy will meet the difference up to the limit of liability listed on the policy.

V If the insured gets into a fender-bender and discovers that the at-fault driver is uninsured, it is not a pleasant situation. Uninsured/underinsured motorist coverage is an important self-help tool that generally is affordable. It is important for people to protect themselves in case an accident occurs with someone who either has no auto insurance or does not have enough coverage. A consumer probably cannot afford to drive without it. V Everyone must have it if he or she lives in a state that mandates that coverage, and about a dozen states do.

The automobile insurance provider needs to be able to tell the consumer whether that coverage is mandated or is optional. Beyond that, if the insured buys it, then a decision must be made to determine how much coverage is needed. How much is needed depends on whether the consumer has adequate health insurance to cover potential accidental health issues and whether compensation is desired for ‘pain and suffering, which is sometimes a part of uninsured/underinsured motorist policies. V The insured can protect themselves from being hurt financially by buying uninsured/underinsured motorist protection. Without uninsured/underinsured motorist coverage, the insured has little likelihood of gaining payment for damages to the insured or their vehicle sustained from an accident with a driver who is either underinsured or driving without any coverage. V Uninsured/underinsured motorist protection is characterized as an important coverage for consumers because it protects them in situations they cannot plan for. Without the coverage, their only recourse may be to sue an individual to cover their losses if the other driver does not have insurance or enough insurance.

V Uninsured coverage also covers the insured if a hit-and-run motorist hits the insured’s vehicle. With this coverage, the insured and the passengers receive compensation for medical expenses, lost wages and other injury-related losses. The insured can sue that person, but if that driver has nothing, you will get nothing even with a favorable judgment. V Underinsured motorist protection also pays the insured for damages that surpass the amount of coverage carried by a driver who is underinsured.

That is valuable, because many drivers carry minimum limits, and that may be insufficient to cover your injuries and lost wages. V Uninsured motorist protection can help in another way. If you are a pedestrian and get hit by a car while trying to cross the street, the coverage could pay any medical expenses and lost wages. Does this coverage replace Collision coverage? Underinsured Motorist Property Damage alone is not enough to cover all potential car repair/replacement costs, and only applies if the insured is involved in an accident caused by a driver without enough liability insurance coverage.

GAP Insurance At the time of this writing GAP insurance is available in all states except: Connecticut, Louisiana, Nebraska, New Hampshire, New Mexico, New York, Virginia, and Washington. Gap insurance protects a consumer in the event of their car being totaled or stolen. When a consumer drives a new car off the dealer’s lot the car has most likely lost 20% of its value. If the consumer puts less than a 20% down payment on a car, they are a good candidate for gap insurance. How does gap insurance work? If a car is stolen or declared totaled, the auto insurance company will pay the insured the actual cash value of the car. The actual cash value can be a lot different from what is still owed on the loan.

Without gap insurance the lender will hold the consumer responsible for paying the difference between the actual cash value and the amount left on the loan. This might mean having to come up with hundreds even thousands of dollars to pay that debt. Gap insurance will eliminate having to pay the difference and eliminate the stress of having to come up with that money.

1) Which is NOT considered in setting premiums for automobile insurance? Driving history 2) Which is NOT a means of establishing how much the car is used? Estimation B.

Monthly reports C. Odometer-based D. Cents-per-mile 3) Many states issued laws preventing insurance companies from mainly utilizing ______ to establish on-line insurance rates. Area codes C. Military service 4) When an accident occurs that is not the insured’s fault and the other driver has no insurance, what type of coverage can pay the claim? Underinsured motorist B. Uninsured motorist C.

The insured’s comprehensive D. No insurance company will pay 5) The difference between gap and total loss coverage is: A.

Amount of money paid B. When the payment is made C. No payment made with gap D. No payment made with total loss coverage 6) True/False. Men average more driving miles per year than women. 7) True/False. Teen drivers pay less if they have no driving record.

8) Traditionally, car towing insurance only covered towing involving an accident. What does it include now? Most types of roadside assistance B. Free GPS unit C. Towing for flat tires and running out of gas only D.

A free service to find a towing company, but no payment for the actual tow 9) True/False. The insured should choose the maximum deductible within their financial means. 10) ______ is the process by which the price of the insurance coverage is determined. Personal Line Insurance is meant to cover risks of person and property of individuals or groups of individuals or liability developing upon them. Insurance of persons would include: v Personal Accident v Medical Claim v Critical Illness Insurance of property would include: v Householders Insurance v Renter’s Insurance Insurance of liability would include: v liability on a person arising out of his personal actions / inactions v out of the practice of his/her profession, such as, Personal Liability, or Professional Malpractice for a Doctor / Lawyer, etc. This course will focus only on aspects of the automobile insurance industry and other motorized vehicles. Automobile insurance is probably the most common form of personal insurance and covers both legal liability claims against the driver and loss of or damage to the insured’s vehicle.

Throughout most of the United States an automobile insurance policy is required to legally operate a motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to a no-fault system that reduces or eliminates the ability to sue for compensation, but provides automatic eligibility for benefits. Non-owned Vehicle The insured, using a car or utility trailer that he or she does not own, is covered by: v their own policy v the other party’s insurance The coverage is going to be identical to the amount of coverage purchased for the insured’s own car or trailer and exclusions may apply.

Policies are offered that would cover an insured on any vehicle driven. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident. Shopping for Auto Insurance Rates vary widely among companies, so it pays for consumers to shop around. Following are some guidelines used by consumers for finding the best deal for their money: Decide before shopping what coverage is needed.

Consider factors other than price - including a company’s financial rating and its complaint index. Financial ratings indicate a company’s financial strength and stability, while its complaint index indicates a company’s customer service record. Buy only from licensed companies and agents. Understanding Rates Law requires rates for insurance to be reasonable, adequate, not excessive to the risks for which they apply, and not unfairly discriminatory. Auto insurance companies set their rates and then file them for review. In some states, companies do not have to receive prior approval before putting their rates into effect, but if it is determined that a company’s filed rates are excessive, the company can be ordered to make refunds to consumers who were overcharged. Factors that Affect the Premium (Driver Specific) v marital status v Male drivers under 25 and unmarried women under 21 have the highest rates v companies can add penalties - called surcharges - for major driving offenses and accidents resulting in property damage of $1,000 or more.

Surcharges are mandatory for rate-regulated companies and stay on the premium for three years v type of car driven. Collision and comprehensive rates are highest for luxury, high-performance, and sports cars.

Rates may also be higher for cars that damage easily or cost more to repair than others v How the insured uses the car. Rates are higher for cars driven to and from work or used for business v credit score.

Companies may consider credit scores when deciding whether to sell a policy and what to charge. However, a company cannot refuse to sell a policy or cancel or nonrenew a policy solely on the basis of credit. V Whether person drove uninsured. Companies can charge more if a person drove uninsured before applying for insurance.

However, a company cannot otherwise charge a higher rate for liability coverage because of prior lack of coverage. V add surcharges to premium – some as high as 60 percent – for the following: o accidents (the more accidents, the higher the surcharge) o moving violations (speeding, etc.) o involuntary manslaughter o driving under the influence o criminally negligent driving o driving without a license or with a suspended license. Impact on Premiums (Not Specific to Driver) The National Association of Insurance Commissioners (NAIC) notes that the following have impacts on premiums: v urban population and greater traffic density v per capita income v higher price levels v tort liability v auto laws and liability coverage requirements v labor costs, v theft and vandalism rates v incidence of fraud Where Does the Revenue from Premiums Go? 1) Rental cars are ______.

Not covered by personal insurance policies B. Covered by auto accident insurance C. Not covered for associated repairs for a covered loss D. Only covered when the insured’s car is totaled 2) According to NAIC, which does not have an impact on higher premiums? Tort liability B. Incidence of fraud C.

Labor costs D. Rural populations 3) Where does the majority of the revenue from a premium go? Taxes 4) Law requires auto insurance rates to be all of the following EXCEPT: A. Reasonable B. Not excessive D. Discriminatory 5) When an insurance company refuses to renew a policy this is called: A.

Cancellation B. Nonrenewal C. Termination D. A lapse 6) True/ False. An insurance company cannot deny, refuse to renew, limit, or charge more for coverage because of a consumer’s race, color, religion, or national origin.

7) True/ False. Law requires rates for insurance to be reasonable, adequate, excessive to the risks for which they apply, and unfairly discriminatory. 8) Aviation insurance insures against all of the following, EXCEPT: A. Liability risks 9) Which is NOT an issue that is eligible for mediation? Extent or Amounts of Damage B.

Methods of repair C. Coverage issues D. Cause of damage 10) True/ False. Mexico does not require drivers to have automobile liability insurance. A commercial motor vehicle is any motor vehicle used on a traffic way for the transportation of goods, property or people in interstate or intrastate commerce.

Examples of Commercial Vehicles: v A trucking company or individual owner/operator hauling a business’ goods for a fee. (For-Hire Carrier) v A manufacturing company hauling its own products to retail stores, and retail stores delivering products to its buyers.

(Not For-Hire Carrier) v A farm hauling its produce to or from the market. V A motor coach, airport shuttle or hotel-owned shuttle bus or limousine service transporting passengers. V Government-owned trucks and buses. V School buses transporting students to/from school or school-related activities.

V Rented or leased trucks used to transport either commercial goods. V A truck greater than 10,000 lbs. That is owned and operated primarily for commerce that is being used for personal transportation or transportation of personal goods. Commercial general liability coverage insures a business against accidents and injury that might happen on its premises, as well as exposures related to its products.

It will protect the insured from payments for bodily injury or property damage to a third party, for medical expenses accruing to the underlying incident, for the cost of defending lawsuits including investigations and settlements, and for any bonds or judgments required during an appeal procedure. No matter how diligently the insured removes all possible hazards from the business, the insured could be sued successfully for accidents resulting from something as simple as the carelessness of a customer. General liability insurance is the last line of defense against devastating claims for things over which the insured may have little or no control. A basic liability policy that covers four forms of injury: v bodily injury v property damage which results in actual physical damage or loss v personal injury v advertising injury Most companies will need to supplement their Commercial General Liability coverage with automobile insurance and workers compensation. Commercial Umbrella Liability Insurance helps to protect customers from catastrophic liability claims such as an explosion, major crash or product contamination incident that can cause long-term damage to a company’s reputation and bottom line. The umbrella policy is on top of other liability coverages, including, and even.

If the primary coverage is exhausted, the umbrella steps in, limits start at $1,000,000 and go up from there. A business owner may consider an accident that does not involve a fatality a minor item. The reality is that such an accident may result in millions of dollars of medical care, lost income and other expenses. Can the business afford a payment of millions of dollars?

Think of accidents involving vehicles that, today, are much safer than 5 or 10 years ago. That means that accidental deaths are less likely while severe head injury is very likely. Severe head trauma can significantly increase a claim’s cost because it may take up to seven years to determine the ultimate extent of injury. Recovery is often slow and sporadic.

These elements combine to make regular insurance coverage insufficient. 1) True/ False. A commercial motor vehicle is any motor vehicle used on a traffic way for the transportation of goods, property or people in interstate or intrastate commerce. 2) Which of the following injury classification is the highest level of severity?

K 3) A ______ is a truck power unit with a permanently attached cargo body. Straight truck B. Longer combination vehicle C.

Combination vehicle 4) True/ False. If a tractor-trailer hits a bridge and disables the trailer, but the tractor can be driven and the trailer has to be towed. This vehicle would not be considered a towed vehicle since the tractor can be driven.

5) Insurance premiums need to cover: A. Expected cost of loss B. Cost of issuing policy C. Cost of premium D. Both A and B 6) A truck that travels from one city to another, typically greater than fifty miles, as distinct from travel in and around the vehicle’s base is referred to as a/an: A. Over-the-road truck B.

Long combination vehicle 7) Which is not a Commercial vehicle for insurance purposes? A tractor hauling produce to the market B. A rental truck for personal items C. A limo carrying paying passengers D.

An airport shuttle (in service) 8) True/ False. Inland marine is a name for a type of coverage used to protect high risk, mobile items that are not covered by policies.

Inland marine coverage for a business can protect valuable tools, for a mechanic, artwork if you operate a gallery, or a jeweler’s inventory. 9) Commercial Auto Insurance cannot provide coverage for which of the following?

A fleet of vehicles and drivers against injury B. Loss or damage to vehicles C. Loss or damage to cargo D. Malpractice coverage 10) U.S. Transportation Department in July 2007 called on state and local governments, education officials, school bus manufacturers, safety advocates and consumer organizations to help the federal government assess the effectiveness of: A. Seat belts on school buses B. Evacuation plans C.

No Child Left Behind Program D. Fraud is the intentional lying or concealment by policyholders to obtain payment of an insurance claim that would otherwise not be paid, or lying or misrepresentation by the insurance company managers, employees, agents and brokers for financial gain. There are a number of laws meant to protect the consumer from deceptive practices used while purchasing automobile insurance. Automobile fraud is a very broad area. There are many different types of fraudulent automobile insurers including: v Insurance companies v Car Dealers v Car Manufacturers v Extended Service Contract Companies v Car Finance Companies Fraud Automobile insurance fraud is often conducted in rings, sometimes with ties to organized crime.

From fabricated losses to staged accidents, superfluous repairs and medical treatments, there has been a huge rise in fraudulent auto insurance claims that is costing consumers millions of dollars in premiums, with certain states including New York, California, New Jersey, Florida, and Massachusetts carrying the brunt of those costs, according to the National Association of Insurance Commissioners (NAIC). One might think that in states like California and New York, states with the most insured cars in the country, costs would be substantially lower due to the amount of people paying into the system (8.6 million in New York alone). However, they are not. One of the biggest drains on the system is the no-fault laws that are on the books in about a dozen states. These laws require insurers to automatically pay for personal injury claims, sometimes up to $250,000, regardless of who may be found at fault. While originally designed to reduce the litigious nature of car accidents, they have increased the rates of fraud and contributed to rising rates. The Insurance Fraud Problem Insurance fraud is one of the most costly white-collar crimes in America, second only to tax evasion.

It affects every citizen in an immediate and substantial way. While shoplifting costs the retail industry approximately $13 billion each year, insurance fraud is estimated to cost $100 billion. In both instances, the crimes translate into higher costs for everyone. Insurance researchers estimate that every U.S. Household pays $200 to $300 a year in higher premiums in order to offset fraudulent claims. What does fraud look like? Insurance fraud occurs when someone tries to make money from insurance transactions by deceiving others.

Insurance fraud is a criminal offense in most states. The following list highlights examples of insurance fraud along with a brief description. Insurance Fraud Falls into Two Categories: Internal and External. INTERNAL FRAUD Internal fraud are those perpetrated against an insurance company or its policyholders by insurance managers, executives, or other insurance employees. Examples include: v Fake/False Documents – Agent or insurer issuing fake policies, certificates, insurance identification cards or binders. V False Statements – Agent or insurer making a false statement on a filing with the State Department of Insurance.

V Pocketing Premiums – Agent or insurer pocketing premiums, then issuing a phony policy or none at all. EXTERNAL FRAUD External fraud schemes are directed against an insurance company by individuals or entities as diverse as policyholders, medical providers, beneficiaries, vendors, chiropractors and career criminals. Examples include: v Arson-for-Profit – An owner, or someone hired by an owner, deliberately burns a business, home, or vehicle to collect insurance money. V Disaster Fraud – Unscrupulous operators persuade disaster fraud victims to claim more damages than actually occurred, or they collect money to repair damaged property, but never complete the work.

V Creating a Fraudulent Claim – Creating a fraudulent claim may include: staged or caused auto accidents; staged slip and fall accidents; false claim of foreign object in food or drink; faking a death to collect benefits, or filing a phony death claim; murder-for-profit; phony burglary theft or vandalism; arson; staged auto thefts; and staged homeowner accident or burglary. V Exaggerated Claims (Overstating the Amount of Loss) – The most common perpetrators of fraud are the occasional “fibbers” or “padders” who overstate their insurance claims to make up for the deductible. Consumers pay billions of dollars annually to cover these little exaggerations.

Overstating the amount of loss can include: inflating bodily injuries from an auto accident; inflating value of items taken during a burglary or theft; inflating a physical damage claim from a minor fender bender; and medical providers inflating billing or upcoding of medical procedures to name a few. V Falsifying Theft Reports – A property owner falsely reports items stolen or exaggerates the values of items taken in a burglary to collect insurance money.

V Medical Fraud (Medical Mills) – Unethical medical practitioners or providers work in concert with scheming patients to create fictitious, accident-related injuries to collect on fraudulent disability, workers compensation, and personal injury claims. These providers usually work through middlemen who recruit patients for their scams. The doctors often bill insurers for multiple office visits and tests which never take place.

V Misrepresenting Facts to Receive Payment – Claiming prior damage occurred in the o current accident; claiming a minor injury created a partial or total disability; receiving o disability payments while working elsewhere conducting the same or similar work duties; o claiming false disability; medical providers billing for services not rendered; providing o unnecessary medical treatment; charging for non-provided medical tests; pharmacist “upcoding” for medicine by issuing generic pills and charging for name brand. V Past Posting – When a person becomes involved in an automobile accident, victim of a car theft, or finds themselves with a property loss and no coverage, he or she may decide to take a chance at “past-posting” insurance coverage. The victim may take the simple approach of going directly from the scene of the accident or theft to an insurance agency or create an elaborate scheme of events. The key is the coverage must appear to have been in force at the time of loss. V Personal Injury Schemes (Slip & Fall) – A corrupt attorney reports his client was seriously injured after falling on commercial property and demands the business’s insurance company be notified. The business owner has no prior knowledge of anyone falling and has never seen the claimant. The fall was staged or fabricated, and there was no such injury.

These con artists often target small businesses or franchise operations. V Property Fraud (Multiple Policies for Profit) – A property or vehicle owner illegally buys numerous insurance policies for one property or vehicle and then damages or destroys it, collecting on all policies. Drive Down – A driver waves on another driver, indicating its O.K. To proceed, and then intentionally hits the passing car. Hit & Run – Using a pre-damaged vehicle, criminals claim they were in an accident and can’t identify the other driver, often calling police to verify.

Paper Accidents – An owner fabricates an accident by making false police and insurance reports. Policy Misrepresentation – A vehicle owner uses a friend’s or relative’s address and misrepresents how far he drives to work to obtain a lower premium. Owner Give-Up – The vehicle owner orchestrates the destruction of the vehicle to collect insurance money. Risky Repairs – An auto body shop owner offers to “hide” the deductible or inflate the extent of damage.

Sideswipe – A driver in the inside lane of a dual left turn lane in a busy intersection drifts into the outer lane, intentionally forcing a collision. Swoop & Squat – This scam occurs when the vehicle you are following is suddenly passed by another vehicle that “swoops” in front of it. This causes the vehicle in front of you to stop abruptly, or “squat.” As a result, you are unable to avoid colliding with the rear end of the vehicle. The drivers of both the swoop and squat car planned the accident. The swoop car will never be seen again and the driver of the squat car plans to submit vehicle damage and personal injury claims to your insurer. Oftentimes, multiple occupants in the squat car will fabricate bodily injuries as well.

T-Bone – This is normally conducted with the absence of any hostile witnesses. The perpetrator waits at an intersection and intentionally rams into a car as it passes. When the police arrive, bogus witnesses are planted to tell the police officer that the victim ran a stop sign or red light. Wave – A tactic normally conducted in heavy traffic, and when there is a merge. The perpetrator waves to the victim, pretending to yield the right of way. As the victim begins to merge, the perpetrator quickly accelerates to initiate contact.

When the police arrive, the perpetrator denies ever giving up the right of way. Shady Helper – This could happen after an honest accident. A stranger approaches you after an accident and offers numbers to an auto repair shop, lawyer or doctor. This could be a setup. The auto repair shop often pads your repair cost, and a doctor may give you shady treatment or none at all. A lawyer may even try to convince you to sue the insurance company. Most scams are performed by professionals that run practice drills before actually committing the crime.

They are normally very professional and skilled at their craft, but that does not mean you can not take steps from being victimized. Here are some measures that can be taken to shift the advantage to your side. Insurance company’s countrywide spends millions of dollars yearly to defend against misleading car accident claims by mischievous individuals looking to reap the benefits of the insurance claims. How do auto insurance scams affect the consumer? The consumer pays because the insurance companies raise premiums to compensate for the loss. It is an unfortunate outcome for the honest citizen. What can the consumer do to help other consumers and the insurance companies?

Contact the insurance provider if you think you have been scammed or witnessed a scam. Everyone knows that any rear-end collision is usually the fault of the rear car. It is not hard for an opportunist to scan the roads for a Mercedes in the rearview mirrors, slam on the brakes, and file a claim. The “victim” may also go off after the accident to inflict additional damage, and he may later claim more passengers were injured than were even in his car at the time.

It can get more complicated than that, of course. Getting money to fix the car will not net much, but collecting to relieve physical pain can drive up the claim quickly. It can take some crooked body shop owners, doctors, and lawyers to pull these off successfully. Also beware of fake helpers who happen to show up on the scene at the right moment. While he may seem to be a savior, he is probably in on the scam and will likely recommend bogus body shops or physicians who will overestimate damages. Stay skeptical around overly generous motorists. One example might be a merging situation in which the driver signals his intent to willingly yield to give the victim the right of way.

Then he speeds up, a sideswipe occurs, and when the police arrive, he denies ever giving any such signal. Possibly easiest of all are “paper accidents”, where the cost of accidents are simply exaggerated on paper (by a shady body shop) or fabricated altogether. Perpetrators typically keep claims under $1,000 so insurers would be less apt to investigate. If the scam artist wants to lie, make him lie right there, unrehearsed, for the official record, to the police. Automobile fraud occurs when a retail seller misrepresents or fails to disclose material facts regarding a new or used vehicle. There are many categories of automobile fraud: v sale of wrecked vehicles v sale of previously repurchased “lemon” vehicles v odometer fraud v various financial frauds that occur in the advertising or at the time of sale or lease of the vehicle Auto Fraud Frequently Asked Questions What constitutes fraud in the sale of a wrecked vehicle? Few things are more aggravating in the purchase of a vehicle than to find out that it has sustained prior material accident damage.

It is illegal to sell a new vehicle with any unrepaired damage, any structural damage or even if repairs were made costing more than 3% of the vehicle’s value. Vehicles sold as Certified Pre-Owned vehicles, meanwhile, must live up to the dealership’s advertised certification standards. It is always illegal to sell an unsafe vehicle, and if you asked specific questions about a vehicle, new or used, the dealer is obligated to provide truthful responses (to the best of his knowledge).

So, for example, if you ask a dealer whether a vehicle has been in a prior accident and the dealer says no, that misrepresentation can be auto fraud. Likewise, if a dealership fails to disclose material damage, even if previously “repaired,” this can also be fraud. How do I know if I have been sold a previously wrecked vehicle? Consumers will typically begin to notice problems in the appearance or performance of their vehicle that may be tell-tale signs of a previous accident. Common examples of appearance items include: over-spray paint on portions of the vehicle, panels that don’t line up or fit correctly, and doors or trunk lids that don’t close properly. Common performance-related signs include accelerated or uneven tire wear and front-end pulling. The best way to tell if your car was damaged is to have it inspected by a body shop.

Signs of damage are usually fairly easy to detect, although a frame check may be required if structural damage is suspected. You should be aware that Car Fax vehicle history reports often fail to reveal prior accidents or damage – and that dealers sometimes use these (often incomplete) reports to “prove” that a vehicle has not been damaged. What are some other ways that people are defrauded through the purchase or lease process? There are numerous schemes automobile dealerships use to increase profits and defraud consumers during the purchase or lease process. These schemes include: misrepresenting discounts in advertising and not disclosing important limitations; altering the terms of the contract and forging signatures; inflating quotes of monthly payments and then selling add-on products (service contracts, paint sealant, alarms, etc.) as if they were part of the deal; and adding amounts owed on trade-in vehicles to a purchase or lease contract without disclosure to the consumer.

These schemes are sometimes complex, and most consumers never realize they have been defrauded. If the dealership cancels the sales contract within 10 days, do I get my down payment or trade-in back? The purchase contract requires the car dealer to return to you all consideration (i.e., everything) given for the purchase. This includes your trade-in vehicle. If you gave a $2,000 down payment and a car as a trade-in, the car dealer must give you back both the $2,000 and the trade-in when you return the car you purchased.

Sometimes a car dealer may tell you that it already sold your trade-in, and will offer you the value of the trade-in as listed on the purchase contract. The language of the purchase contract does not appear to give the car dealer this option. It requires the return of the trade-in. However, if the car dealer does sell your trade-in, at the very least, you should tell the car dealer that it has to give you whatever is the highest value for your trade-in out of either (1) the value of the trade-in as listed on the purchase contract, (2) the fair market value, or (3) what the car dealer received when it sold your trade-in. Can the car dealer charge me for using the car I purchased from them? The car dealer cannot charge you for using the vehicle.

For instance, it cannot charge you for the miles driven during the 10-day period. However, you are responsible for any physical damage to the car during the time it is in your possession. What if the car dealer tells me they have a new purchase contract for me to sign? If the car dealer exercises its right to cancel the purchase contract within 10 days, you are not required to sign a second contract to purchase that same car. Let me repeat this.

A car dealer cannot force you to sign a second contract. If the car dealer cancels the purchase contract within 10 days, you are obligated to return the car, and the car dealer must give you back any down payment or trade-in that you gave with the purchase. Negative Equity/Trade-In Overestimation This arises in a transaction that includes a trade-in vehicle when more is owed on the trade-in vehicle than the actual cash value of the vehicle. Generally, a customer is led to believe that the dealership is valuing the trade-in vehicle at the same amount as what is owed (thus the customer won’t owe anything on the trade-in.) In reality, the secret actual cash value (the value the dealership is really giving the trade-in) is less than the amount owed.

The difference is added to the cash price of the new vehicle (or the capitalization costs of a leased vehicle.) By inflating the cash price or cap costs of the vehicle, you the customer are illegally paying more in sales tax and registration. The dealership may also be violating the laws related to selling a vehicle for the advertised price (a dealership may not sell for more than advertised price.) A similar illegal practice may occur when a lease balance is paid off. These are still illegal practices even when the customer is told what is happening. Packing (inflated monthly payments) In a packing case, the customer is quoted an inflated monthly payment. Once the customer accepts the monthly payment amount, the dealership adds accessories (alarms, service contracts, GAP insurance, paint/fabric protection, window etching, low jack, etc.) in order to reach the inflated monthly amount.

The customer does not realize that the accessories are optional or that they are paying extra for the accessories (they are led to believe the accessories are included with vehicle or not told at all.) Scam 3. Rewritten Contracts/Backdating Often a customer will not qualify for financing with the terms on the first contract. The customer may be required to increase a down payment, accept higher APR, etc. In order to qualify for a loan. The dealership has the customer sign a second contract with the different terms but backdates the second contract with the date of the first contract.

This affects the finance disclosure laws in that the customer is being charged interest for a time period in which the contract is not yet in effect, etc. In addition to making a material misrepresentation regarding when the customer takes the obligation of the new contract, a backdated contract often also violates the single document rule (explained below) because another form (usually called Acknowledgment of Rewritten Contract) has the actual date when the contract was signed. Further, many customers are not told that they do not have to sign a second contract, instead they can choose to cancel the contract and return the new vehicle and have the down payment and trade in vehicle refunded.

Finally, a dealership only has 10 days to tell you they want to make changes to the contract or cancel the contract. After the 10 days, the dealership cannot change the deal. “Must Put It All in One Document” Rule The law provides that all obligations of both parties must be contained in a single document (this explains why purchase agreements are so long in the automobile industry.) Often, dealerships will have customers sign other documents, such as trade in forms that state that the customer agrees to pay any difference between the trade in value and pay off of a trade in vehicle if it is different than the amount on the purchase agreement (and any associated attorney fees). Or, the dealership will agree to make payments on a trade-in vehicle but not include the trade-in vehicle in the purchase agreement. Another example is a “hold check agreement” in which the customer agrees to pay additional money towards the down payment on a later date. These documents violate the one document rule.

The Deferred Down Payment Scam Many customers are unable to pay the entire down payment at the time the purchase contract is signed. Dealerships will allow customers to make down payments in payments (called deferred down payments). The code recognizes these types of payments and requires that deferred down payments be itemized, including the amount and date due for the deferred down payments. However, rather than disclosing deferred down payments are required by the code, dealerships will have customers write checks for the deferred down payments and then agree not the deposit the checks until an agreed upon date. As part of this transaction, customers are made to sign a hold check agreements that states what date the checks will be cashed and also have additional provisions regarding any returned checks, thus creating obligations that are not included in the single document (purchase agreement.) Scam 6.

Changes to the Advertised Price The law states that a dealership cannot sell a vehicle for more than the advertised price (even if the customer is unaware of the advertised price. Embarcadero Rad Studio Xe 2 Serial there. ) What is an advertisement is broadly defined to include window stickers as well as the usual media ads. If a dealer inflates the cash price of vehicle to include the would, in practice, result in selling a vehicle for higher than the advertised price.

(Which in addition affects the amount the customer is charged for taxes, licensing & registration fees and finance charges.) Scam 7. Using Your Language Against You If a lease/purchase of a vehicle is primarily negotiated in Spanish, then a Spanish translation of the contract must be provided to the customer prior to signing the English language contract. This law was recently expanded to include Chinese, Vietnamese, Tagalog and Korean. Failure to comply gives the customer right to rescind. The Whole Truth About Used Cars Dealerships are required to disclose material known facts about a used vehicle such as if the vehicle was: v involved in a prior accident (that caused substantial damage) v it was a prior rental vehicle v a lemon law buy back (the vehicle was repurchased by either manufacturer or dealer under the lemon law because of a defect) v odometer readings not accurate, etc. They are also prohibited from misrepresenting facts about the vehicle’s history (such as it’s never been in an accident, it was a trade vehicle (when it was a rental), etc. So is it New or is it Used?

The law requires that a dealership describe the vehicle being purchased as either “new” or “used”. A used vehicle also includes a “demo” or demonstrator vehicle (vehicle used by manufacturer or dealership representatives) but often the contract will state the vehicle is “new.” Also, some vehicles were previously sold but for some reason returned (usually because the failure to obtain financing) and this vehicle may also be used, but is listed as new. “Certified” Used Vehicles Several manufacturers and some dealerships have “certified” used vehicle programs. Generally, a used vehicle that passes certain standards is labeled “certified used” and is suppose to guarantee to the customer that the used vehicle is in good working order and free from major structural damage (including prior accidents.) However, a lot of vehicles that do not actually qualify as “certified” under the standards advertised are being labeled certified. Customers are ending up with certified vehicles with frame damage from prior accidents. Insurance Companies/Licensees If you are an insurance licensee contact the State Insurance Anti-Fraud Division to provide you with the appropriate information to submit a complaint. Public Citizens The Anti-Fraud Division does not require any specific forms to be filled out to report insurance fraud.

An individual should put in writing a detailed account of the complaint listing all persons who are involved in the case, any addresses or phone numbers you have and any supporting documents you have in your possession that you feel would help in our investigation. You may submit a complaint by e-mail in many states however, all supporting documentation need to be sent by regular mail. An investigation will not commence until documentation (if any) of the complaint is received.

Once the Anti-Fraud Division receives all information from the consumer, one of three things may happen: v The case will be assigned an investigator and our investigation will commence. V The case will be determined to be outside our jurisdiction for investigation and will be referred to the appropriate investigating body. V The case is too old (over 5 years) to seek any criminal charges. The consumer will be notified by mail of the action taken in the case. If the case becomes an investigation periodic updates of the case progress will be sent. The consumer may contact the investigator assigned to the case at anytime to provide further information or to discuss any questions about the investigation. Insurance fraud costs every family approximately $850 a year in higher premiums.

This money goes to pay for fraudulent actions made by individuals providers or agents. These simple guidelines help a consumer to avoid becoming a victim: v Be suspicious of an agent that will only accept premium payments in cash, money orders or cashier checks. V The buyer never receives a policy. V An agent pressures you to buy immediately because “this is your last chance.” v A hospital or medical provider bills you for procedures not performed or for office visits you did not attend. V You are in a minor accident and someone gives you the name of a doctor or lawyer who can “make you some money”.

This is not a complete list but gives you an idea of the types of things you should be aware of. About the Anti-Fraud Division Insurance Department’s Anti-Fraud Division was established to handle all types of insurance related misconduct except for Medicaid, Medicare, and workers’ compensation claimant fraud. Anti-Fraud investigators review, refer, and investigate cases from all over the state. Staff attorneys review the findings and facilitate the prosecution or other appropriate disposition of the matter. The Anti-Fraud Division has investigated hundreds of reports of insurance fraud and has obtained or assisted in the successful prosecution and conviction of cases in states throughout the nation in 2006. Those prosecutions have resulted in the return of thousands of dollars to those persons or entities that were defrauded. The Anti-Fraud Division has also participated in successful joint investigations with various other state and federal law enforcement agencies including the FBI, IRS, United States Postal Inspector, and many other state regulatory agencies.

How Does it Work? Designed to simplify the process of settling medical claims, for example, in no-fault states, each insurer pays the medical bills for the person carrying their policy.

Unfortunately, between staged accidents, unnecessary and expensive medical testing, and unnecessary visits to doctors and chiropractors, these laws have made it much easier for corruption to grow. The numbers of claims as well as their costs point directly to a sophisticated, deliberate effort rather than crimes of opportunity and normal inflation.

Over the past year, the cost of claims for medical no-fault (PIP) in New York state rose by 32%, more than twice that of Florida, which follows in second place for rising claim costs. This means that it’s getting more expensive to treat bodily injury by medical professionals. However, the cost of medical services rose only 4.1% last year, according to the U.S. Bureau of Labor Statistics, thus showing hard evidence of fraud.

In addition to the cost of claims, the frequency of claims has tripled in recent years. The National Insurance Crime Board reports that 90% of its fraud reports in New York involve auto insurance. The Insurance Information Institute (III) also states that for every $100 insurers took in over a period in 2000, they paid out $177 in claims. Who’s Doing It? Another kind of fraud that is equally pervasive is the hidden cost trick.

Certain body shops and mechanics may pad the invoice they present to a customer’s insurance company, so that their customer does not have to pay their deductible. A chiropractor may require a patient who has soft tissue damage to come for far more treatment than medically necessary, charging more for incidentals like ice and electrical stimulation. A doctor may bill for services never rendered (this is a huge burden on the system, called “medical mills”). A small number of unethical doctors and lawyers, and a few shady middlemen, are making money from these increasingly sophisticated, seemingly “victimless” crimes. Fraud in New York state’s medical no-fault system, according to the III, is a billion dollar industry. Unfortunately, it’s the insured drivers that have to make up the costs to cover these schemes.

What’s Being Done? In California, a fraud ring that was said to have staged over 100 collisions in Los Angeles over a 9-year period defrauded the insurance industry out of $2.5 million. Twelve men were arrested in connection with this crime. In Florida, Miami Dade County has made over 500 arrests related to auto insurance fraud and, as noted by the state regulator, many have shown links to organized rings.

In addition, most states have made auto insurance fraud a felony and have begun prosecuting criminals involved in these crimes. Insurers are also working on the problem, trying to recoup millions of dollars from these crime networks, using the Racketeer Influence and Corrupt Organization (RICO) Act. However, it is an incredibly expensive and arduous process. One example, from January 2000, shows a group of insurers who joined together to file a civil suit to try to recoup $2.6 million in fraudulent claims. They recovered less than half that amount and their expenses ran upwards $500,000 (a cost that will rise as defendants refuse to settle). Consumers Recent allegations concerning inappropriate insurance broker activity, has created an increased awareness for state insurance departments to enhance their collection of information from consumers, insurance producers and employees of insurers concerning alleged violations of insurance laws and regulations. In order to adhere to the NAIC Uniform Suspect Fraud Reporting Form structure, the consumer reporting the inappropriate actions will be requested to complete the following information: v Reporting Person - your contact information.

V Subject - the person suspected of fraud. V Claim - the information that was provided with the insurance company. V Fraud Type - the classification of the fraud allegedly committed.

V Fraud & Investigation - detailed information about the fraudulent activity and the status of any current investigations. V Involved Party - any person that has information regarding the fraudulent activity. How an Individual Can be Protected The Better Business Bureau recommends that a consumer of automobile insurance take the following proactive steps to avoid becoming a victim of automobile insurance fraud: Plan Ahead Purchasing insurance itself is not enough. Decide what type of coverage you want and what you can afford in terms of deductibles. Average auto insurance rates have declined in recent years. Comparison shop as you would for any other major purchase.

The cost of insurance can vary significantly from company to company. Get What You Pay For. Make sure your policy contains the coverage you selected. Take the time to review the coverage and get a second opinion from a reliable source. Check out the reputation of the agent as well as the insurance company. If you buy a policy from an unlicensed agent, you are not protected.

Don’t rely on someone’s identification for verification. Get their agent license number and call your state insurance commissioner’s office to verify an agent’s licensing status. To locate your state insurance department, visit the NAIC web site at www.naic.org/consumer/state/usamap.htm. Do not give out any financial or personal information until you do so.

Never Pay Cash. Always pay your insurance premiums by check or money order. And, if possible, make your check out to the insurance company. Protect Your Records.

Store copies of insurance documents and receipts in a safe deposit box or with an attorney. Documents should include up-to-date pictures of your vehicles. Detail Your Claims. In the event of an accident, your insurance company will meet with you to determine the validity of your claim. Keep a log of your interactions with adjusters and agents, including conversations, documents and phone calls, etc. Beware of Unsolicited Offers.

Be wary if, after an auto accident, one or more strangers contact you to offer “quick cash” or to recommend a particular medical clinic, doctor or attorney. This unsolicited help could be the work of a fraud ring. Check All Related Bills. Ask for detailed bills for all services associated with your auto insurance policy. Carefully check them for accuracy. Be sure you actually received the service(s) listed and watch for double-billing or unexplained excess charges. Report Fraud.

If you’ve been the victim of auto insurance fraud, immediately contact the fraud division of your state insurance department. Remember, detailed and precise documentation is your greatest asset when filing claims and will enhance your chances of winning back what you lost. The Mission The mission of the Antifraud (D) Task Force is to serve the public interest by assisting the state insurance supervisory officials, individually and collectively to promote the public interest through the detection, monitoring and appropriate referral for investigation of insurance crime, both by and against consumers. The Task Force will assist the insurance regulatory community through the maintenance and improvement of electronic databases regarding fraudulent insurance activities.

Disseminate the results of research and analysis of insurance fraud trends as well as case‑specific analysis to the insurance regulatory community. Provide a liaison function between insurance regulators, federal, state, local, and international law enforcement and other specific antifraud organizations. Coordinate between state and federal regulators regarding the USA PATRIOT Act anti-money laundering amendments to the Bank Secrecy Act. The Task Force will also serve as a liaison with the NAIC Information Systems Division and other NAIC committees to develop technological solutions for data collection, and information sharing. The Task Force will monitor all aspects of antifraud activities by its working groups and subgroups on the following charges. Task Force Implementation v Appoint an Antifraud Training & Seminar Working Group to identify and develop training sessions regarding antifraud issues of importance to insurance regulators, industry and interested parties.

V Appoint an Information Sharing & Technology Working Group to evaluate sources of antifraud data and propose methods for enhancing the utilization and exchange of information among insurance regulators, fraud investigative divisions, and law enforcement, insurers and antifraud organizations. Recommend secure systems for the dissemination of confidential information between insurance fraud agencies. V Appoint an Antifraud Liaison Working Group to (1) develop initiatives and guidelines to enhance relationships with industry Special Investigation Units (SIUs), external private sector antifraud entities and antifraud organizations to include but not limited to training opportunities, model protocols and bench marking projects.

Projects will include guidelines for working with insurance fraud prosecutors, state fraud bureaus, and industry referring fraud cases to state fraud bureaus. (2) Develop an Automobile Insurance Fraud Model Law. (3) Provide an advisory role for the merger of the Coalition Against Insurance Fraud, International Association of Special Investigation Unit (IASIU) and National Insurance Crime Bureau (NICB). V Appoint a Federal and International Enforcement Coordination Working Group to (1) coordinate with state, federal and international law enforcement agencies in addressing antifraud issues relating to the insurance industry, (2) support insurance regulator efforts to gain access to the FBI Fingerprint Identification Record System/Criminal History Record Identification System, and (3) monitor and recommend appropriate guidance on state issues arising from the application of 18 U.S.C.

V Appoint a Producer, Company, Unauthorized Entities & Unlawful Activities Working Group to (1) develop a program to enhance recognition, investigation, and prosecution of unauthorized entities by updating and maintaining the Unauthorized Entities Manual and by (2) identifying and developing recommendations for coordination and cooperation between state insurance department and law enforcement authorities on unauthorized issues. (3) Research and define the process to measure the impact of regulatory and law enforcement efforts to combat insurance fraud and (4) develop methods to enhance the investigation and prosecution of financial services fraud. (5) Establish guidelines on the investigation and prosecutorial resources necessary to investigate insider insurance industry fraud. V Appoint a NAIC/North American Securities Administrators Association (NASAA) Enforcement Coordination Working Group to (1) develop an education and training seminar in cooperation with NASAA. (2) Identify and develop recommendations of cooperation and communication between insurance and securities regulators. Good News There is some good news, though. While the cost of insurance is expected to rise this year, it is the smallest increase (3.5%) in four years, according to III.

Perhaps the awareness, of states, prosecutors, and insurance companies, of the size and scope of this problem is having real effects on changing the way business and legislation is being done. Consumers, by maintaining vigilance in doing business only with ethical service providers, can also do their part. Not participating in the system of corruption does pay.

(autoMedia.com 2000-2006) Decline in Deceitful Bodily Injury Claims Besides a lesser number of accidents, a lot of industry specialists state that fraud-fighting successes have played a major role in a healthy decline in deceitful BI (bodily injury) claims. Roads that ensure safe driving and vehicles that are designed to protect drivers and passengers, along with graduated licensing programs (two-step programs for new drivers, which make for safer and more educated drivers) for teens, are additional factors driving the descending spiral in vehicles coverage premium expenses. The reshaped patterns of common characteristics of the US populace, with millions of baby-boomers born during the period when birth rates increased sharply (1946 and 1964, currently all belonging to what insurers calculate to be their safest driving period, are also bringing about these cost cuts. More Examples of Automobile Fraud Odometer Tampering Critics point out the possibility of cheating the system by odometer tampering.

Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and reconnecting them later. Resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical though. There are also powerful legal deterrents to this way of stealing insurance protection. Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel.

Odometer tampering—detected during claim processing—voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail. Other Examples of Auto Fraud: v Selling an unsafe vehicle v Selling a vehicle that has a history of being salvaged or flooded v Inaccurate disclosure v Arson To report suspected arson or suspicious activity involving fires, call the State Fire Marshal’s 24-hour Arson Hot Line, if available. Case Example: Personal Automobile with Suspected Arson The truck is in the parking lot of the business and approximately 3am the car was seen on fire by the security guard. The guard called the fire department along with the business owner. The owner called the insurance licensee who came to the scene to examine the truck. The agent smelled gasoline and the security guard reported seeing a person fleeing on the video surveillance camera. Law enforcement arson specialists were called by the fire department.

The arson investigator will search for where the fire started called the point of origin. Driver Age 16 17-19 20-49 Driver error 78 69 55 Speeding 39 33 23 Single vehicle 52 45 39 3+ occupants 29 24 18 Drivers killed with 13 25 44 0.08+ BAC Driver error: Compared with older drivers’ fatal crashes, those of 16 year-olds more often involve driver error. Speeding: Sixteen-year-old drivers have a higher rate of fatal crashes in which excessive speed is a factor. Single-vehicle crashes: More of 16 year-olds’ fatal crashes involve only the teen’s vehicle. Typically these are high-speed crashes in which the driver lost control.

Passengers: Sixteen year-olds’ fatal crashes are more likely to occur when other teenagers are in the car. The risk increases with every additional passenger. Alcohol: Although this is a problem among drivers of all ages, it’s actually less of a problem for 16 year-olds. Typically, fewer than 15 percent of fatally injured 16-year-old drivers have blood alcohol concentrations of 0.08 percent or more, but alcohol quickly becomes a problem in later teen years. Night driving: This is a high-risk activity for beginners. Per mile driven, the nighttime fatal crash rate for 16 year olds is about twice as high as during the day.

Low belt use: Teenagers generally are less likely than adults to use safety belts. Teenagers perceive a driver’s license as a ticket to freedom. An effective way to reduce this toll is to enact graduated licensing, under which driving privileges are phased in to restrict beginners’ initial experience behind the wheel to lower risk situations. The restrictions gradually are lifted, so teenagers are more experienced and mature when they get their full, unrestricted licenses. Graduated systems that are well designed restrict night driving, limit teen passengers, set zero alcohol tolerance, and require a specified amount of supervised practice during the initial phase.

Graduated licensing laws have reduced teens’ crash rates in the United States, Canada, and New Zealand. But not all states have such laws, and the laws are not all strong. AAA Stats According to a recent study by the American Automobile Association (AAA) 30,917 fatalities over the past 10 years were the result of crashes involving drivers ages 15-17 years old. A third of those killed were the teenage drivers themselves ages 16-18 – while another third were passengers riding with the teenage driver.

But a third of the fatalities were occupants of other cars - --or pedestrians who just happened to be in the wrong place at the wrong time. AAA says that makes teen drivers the single most dangerous group of motorists on the road – to others as much as to themselves. The most lethal combination of all is a teenage driver with a bunch of his (or her) teenage friends along for the ride. According to AAA, the risk of a potentially fatal accident involving a teen driver more than doubles when there is a teenage passenger in the car – and quintuples with the presence of two or more teen passengers. Any former teen that made it safely to adulthood probably understands the connection immediately.

Most of us can remember being 16 – and the sense of liberation that accompanied access to a car. For a lot of us, the first thing on the agenda was to pick up some of our friends and do what comes naturally to teens – go out and have a good time. Some of us also liked to impress our friends with our driving prowess – which often as not led to our first fender-bender (and sometimes worse). Also, talking and/or eating and driving at the same time – with many a close call the result. This is common knowledge – and part and parcel of being a teen.

What’s lacking is common sense to protect teens (and the rest of us) from the natural consequences of being a teenager – and an inexperienced new driver. Several states have tried passing laws forbidding teens from driving other teens (inconvenient for them, but with solid reasoning behind it) as well as curfews and other limitations. AAA also wants every state to require a 6-12 month probationary license for all teen drivers (which could be revoked for bad behavior) as well as at least 50 hours of adult-supervised driver training during the learner’s permit stage. This is a step in the right direction but really, just a small one. It is not all teens who are the cause of so much trouble. Its inexperienced teens allowed onto the road before they have been properly trained – and adequately tested.

A great many of the accidents reported by AAA, for example, are single-vehicle crashes resulting from driver error such as over-correcting after an outside wheel inadvertently dips off the road onto a gravel shoulder. Instead of smoothly maintaining control and easing the car back onto the pavement, an inexperienced teen driver will more often than not jerk the wheel hard to the left, which in turn causes the car to skid back onto the road, over the double yellow line – and right into the path of oncoming traffic. Case Example #1: Teen Driver When their 16-year-old son Tyler missed his curfew, his parents started to fear the worst. Tyler had died with two teenage friends in a crash earlier that night.

Tyler and some friends were supposed to meet at the movies, but only a few people showed up. That’s when Tyler and others headed home.

None had been drinking, and they had only three miles to drive. But 17-year-old Tonya was going about twice the speed limit when the car veered off the road and hit a telephone pole, killing all three teens instantly. Case Example #2: Teen Driver Emma was 16 years old.

Emma died in a single vehicle crash less than a year after getting her license. It was still daylight as Emily was driving to a birthday party. She was rounding a curve in the road, drifted over the shoulder, overcorrected, struck a culvert, and was ejected through the passenger window of her car. Her parents could not believe Emma did not have her safety belt on. She was so bright and practical, and level-headed.

Sometimes, parents just assume kids are doing the things we teach them. The convenience of having Emily drive and the fun she had driving were short-lived. If parents knew the statistics, more parents make their teens go through a step-by-step process to earn driving privileges. Anything would be worth saving their kids from a fatal accident. The Most Common And Dangerous Mistakes Witnessed On The Road Pushing Buttons. Car companies and their suppliers jump through lawyers’ hoops when developing central information consoles that can include satellite navigation, stereo controls and climate gauges. And with good reason.

Tweaking these devices while driving is a leading cause of accidents and near misses, according to Drive for Life, the National Safe Driving Test and Initiative. Most new consoles will not allow you to plug directions into a satellite navigation system while the car is in gear, but almost all allow you to play with the stereo. Try to do this when stationary, at traffic lights. Aggressive Driving is a factor in about 56 percent of fatal crashes, says the latest study on driving habits from the Surface Transportation Policy Partnership. Though subject to debate, the study has classified aggressive driving as “speeding, tailgating, failing to yield, weaving in and out of traffic, passing on the right, making improper and unsafe lane changes and running stop signs and red lights.” The group says that most drivers admit to making the same mistakes they hate to see other drivers commit. Distracted by trying to read a map and directions or looking for a free parking space. Pushing the Wrong Pedal.

In November in California last year, Huntington Beach police officer Brian Knorr was honored for his actions after he rescued an 83-year-old Orange County woman whose car was partially submerged in a water channel. Uninjured, the driver told a local newspaper she thought she had pressed the brake pedal of her 1999 Chrysler Concord only to find her car accelerating off the road into the water. She also said Chrysler had not been too responsive in her efforts to find the root of the problem, which she blamed on mechanical failure. Tragically, this is an all-too-familiar story. In Santa Monica, Calif., in 2003, an 86-year-old man drove his car through a crowded farmer’s market, killing 10. Elderly drivers rank as one of the safest groups, often sustaining unblemished driving records over long periods. But self-awareness combined with oversight by family members is key to upholding driver safety.

Many more elderly drivers report trouble checking blind spots and looking over their shoulders due to physical restraints. Fatal crashes fell slightly from 43,443 in 2005 to 43,300 in 2006, or just under five every hour nationally. More than half of the fatally injured were unbuckled.

Bad Tread on Tires. Reading the tread of your tires can foretell the future. Spontaneous road-battles are the worst. When dealing with someone with road rage, suddenly you’re expected to dodge insults, trash and who-knows-what-else. A slightly obese person with road rage got stuck in her sunroof trying to climb out of her car in order to hit someone with her shoe. She got rid of her car shortly thereafter, swearing that she has too much road rage to be behind the wheel.

Grooming While Driving. Has anybody actually met someone by exchanging glances on the road going 60 mph?

It’s like a car is a dressing room for some people – people that need perfectly manicured hair and flawless skin at all times. No Turn Signals. There are two types of drivers that don’t use turn signals? There are the ones that do not use their signals because they are trying to be sneaky and grab the incredibly tight space in front of your car in bumper-to-bumper traffic. Then there’s those who just do not seem to remember or care to use their signals, like the guy who veers into a turn in front of oncoming traffic and freaks everyone out at the intersection. Slowpokes in the Fast Lane.

“Keep right except to pass.” Some drivers just do not get it. They just love that left lane, even when they’re rolling along 20 mph under the speed limit. Maybe they get nervous when cars whiz past their window.

The left lane’s no-traffic shoulder may seem friendlier. Also, it’s easier to see the scenery out the driver’s side window from the left lane, as there are no cars to block the view. Highway departments should develop something like a high-speed snowplow to come up behind these ‘pokers, and gently shove them over to the right. Driving Greedy. There was a driver so protective of his space behind a tractor trailer that, while maneuvering to keep someone else from merging, he actually got his bumper stuck on the back of the truck. The truck pulled away and yanked the whole bumper off.

And the other car jumped into the space anyway, rubbing some salt in the wound. The Multi-Lane Dash. Don’t you just love it when a car makes a desperate diagonal bee-line across three lanes for an exit? Avoiding a Speeding Ticket. People who get speeding tickets are often guilty of more than simply driving faster than the posted limit. It’s getting noticed in the first place. 1) ______ is the intentional lying or concealment by policyholders to obtain payment of an insurance claim that would otherwise not be paid, or lying or misrepresentation by the insurance company managers, employees, agents and brokers for financial gain.

Fabrication 2) Automobile fraud involves many different types of auto insurers, including all of the following EXCEPT: A. Car manufacturer B. Car finance company C.

Car dealers D. Malpractice insurance company 3) Which is NOT a type of fraudulent auto insurance scam? Fabricated losses B. High premiums C. Staged accidents D. Superfluous repairs 4) Which is a type of internal fraud? Fake or false documents B.

Arson-for-profit C. Exaggerated claims D.

Falsifying theft reports 5) Which is a type of external fraud? Pocketing premiums B. Fake/false documents C. False statements D. Arson-for-profit 6) True/ False.

Insurance fraud is a criminal offense in most states. 7) True/ False. When an owner fabricates an accident by making false police and insurance reports this is called paper accidents. 8) A pre-damaged vehicle used in a false claim where the owner claims there was another car, but cannot identify it is called A. Hit and run B.

Owner give-up C. Swoop and squat D.

Drive down A. Planning ahead B. Never paying cash C. Reporting fraud D. Generalizing claims 10) True/ False. The mission of the Anti-Fraud Task Force is to serve business’s interest by assisting the state insurance advisory officials.

State auto liability insurance laws fall into four broad categories: 1. Those based solely on the traditional tort liability system; a tort is a wrongful act other than a breach of contract that injures another person and for which the law imposes civil liability. Those that require an insurance company to pay first-party (policyholder) benefits, regardless of who was at fault in the accident, but retain the right to sue as in tort liability states; 3. Those that provide no-fault first-party benefits but restrict the right to sue except under certain conditions; and 4. Those that provide a choice between the traditional liability system and a no-fault system. These alternative systems have evolved over time as consumers, regulators and insurers have sought ways to lower the cost and speed up the delivery of compensation for auto accidents.

Additionally, car insurance fees are also impacted by the degree of coverage policyholders decide to get. State demands a legally-required amount of minimal insurance coverage for all motorists in the state. Despite this, the National Association of Insurance Commissioners or NAIC found during 2004, for instance, that 23% of drivers with insurance coverage did not take out comprehensive coverage, and as many as 28% decided against optionally getting collision coverage. Drivers who buy neither comprehensive nor collision coverage evidently have smaller car insurance premium interest rates while opting to self-insure (by putting aside a reserve fund for self-protection against a loss) to safeguard against theft and other losses and damages. Not all states require consumers to have certain types of automobile insurance, but all states do require a person to prove that a specified amount can be paid if he or she causes bodily injury or property damage while driving. The proof would be insurance or large amounts of cash or some other security. Without one of these, a consumer may lose a driver’s license and vehicle registration.

Visit the Insurance Information Institute’s web site at www.iii.org to find the specific auto insurance coverages required by each state. STATE Required?/Liability Minimums (per thousands) PIP Required No-fault State? Uninsured motorist coverage required? All 50 states have different requirements for automobile insurance.

In some states liability coverage must be proven before a car can be registered. Some do not require proof of liability, but expect the insured to have liability coverage in the event of an accident or traffic violation. The states that require liability also set the minimum amount that must be purchased. In Pennsylvania and New Jersey a hybrid no-fault system known as “choice no-fault” exists. In these states you may choose: v to be insured under a strict no-fault plan in which case you are unable to sue an at-fault driver and also cannot be sued if you are at fault.

V the other option is not to take out no-fault insurance coverage and be able to sue other drivers or to be sued. PIP only pays medical bills and lost income up to the limits of the policy. Florida The state’s no-fault law is scheduled to expire soon unless reenacted. Insurers would like to see it replaced by a new law based on the tort system because personal injury protection benefits, which pay for medical care and related treatment, have been subject to fraud and abuse. Under the current system, unscrupulous medical clinics and attorneys can run up medical care costs for minor accidents, pushing up the cost of coverage for everyone else. Insurers say that a return to the tort system could save policyholders as much as $250 a year.

A study by the Property Casualty Insurers of America (PCI) shows that auto injury claim costs have risen faster in Florida than the national average. During the first quarter of 2005, the average PIP claim cost shot up more than 17 percent, resulting in an overall increase of 44 percent since 2000. Among the explanations for soaring costs are: v a higher-than-average number of office visits to medical practitioners, v higher health care costs and v more sprain and strain soft-tissue injury cases that are harder to evaluate both for the degree of injury and recovery.

These higher costs make it easier to reach the tort-threshold limit of $10,000 and to sue for additional compensation, weakening the basis for the no-fault system. New York Regulation 68 In an attempt to address this drain on resources, New York created regulation 68, a reform measure adopted in 2002 that substantially shortens the time period for reporting auto accident injuries and submitting bills for medical treatment. It is divided into 4 parts that each address a separate regulated aspect of the no-fault reparations system: v Regulation 68-A Prescribed Policy Endorsements v Regulation 68-B Rights and Liabilities of Self Insurers v Regulation 68-C Claims for Personal Injury Protection Benefits v Regulation 68-D No-Fault Arbitration It is expected to reduce such claims. The reduced notification time allows insurers to look at the treatment plan sooner, thus providing fewer opportunities for unnecessary diagnostic tests and treatments. The most recent amendments to Regulation 68 became effective March 14, 2007. There were two amendments requiring insurers to issue no-fault denials with specific wording so that the applicants were aware that they could apply for special expedited arbitration to resolve the issue of which eligible insured are designated for first party benefits, and providing the procedures for administration of the special circumstances for arbitration for disputes regarding the designation of the insurer for first part benefits. A clarification letter regarding Regulation 68 was issued to insurers in New York by the Insurance Department for New York dated September 2006.

The agency became aware of a practice whereby the parties to a no-fault claim entered into an agreement to settle the dispute for a monetary amount without itemizing the principal and interest components of such amount. This practice does not comply with Regulation 68-C which requires the separate identification of any interest payment from the principal and that interest payments are not to be included in ratemaking calculations. Also, insurers are prohibited from taking credit for interest payments in calculating whether the maximum aggregate policy limits have been reached. Therefore, if the terms of a settlement include interest, the insurer should separately identify the amounts allocable to the principal and the interest in each case. (NY State Ins. 2007) Michigan As insurers and legislators search for ways to rein in rising costs in no-fault systems nationwide, two studies — one addressing the Michigan system, the other auto insurance in general — provides recommendations that could provide good information for debate. Both suggest adding more coverage options.

It examined the Michigan no-fault system and how it compares with other no-fault systems around the country. Michigan in the past has served as a model for other states. The Michigan report advocates a choice-no-fault system and, for those who choose no-fault, a choice of personal injury protection levels.

In addition, it suggests the creation of a fraud bureau within the office of the attorney general. Michigan is the only no-fault state without a fraud bureau and one of seven states without one nationwide.

The other study, “Auto Insurance Reform Options,” one of a series of public policy papers commissioned by the National Association of Mutual Insurers, reviews the weaknesses of auto insurance laws, both tort and no-fault systems. Among the no-fault system reforms proposed to lower costs are the elimination of compensation for pain and suffering (the “pure” option, under which lawsuits that met the threshold definition could only be filed for economic losses), the replacement of weak thresholds with strong verbal thresholds, and a pain and suffering “schedule” which would set out dollar amounts for death and various types of injuries. The study’s author also recommends giving consumers a choice between their current no-fault threshold and one that only allows recovery of uncompensated economic losses. In addition, he identifies a number of reforms that could reduce fraud, including making regular health insurance the pri.

Watch the latest video at You are in the right place if you are here looking for what is a sanctuary city, a list of sanctuary cities, what are the sanctuary cities in the US, sanctuary states, and even for information on Mexifornia. In the past 21 months, immigration authorities have issued more than 230,000 detainers, according to ICE. Since January 2014, law enforcement agencies around the country have failed to honor about 17,000 detainers, 61 percent of them in California, ICE said. You shouldn't wonder why there is so much crime related to illegal immigrants in California. As the saying goes, you get what you ask for! Martinez declares New Mexico is not a Sanctuary State Lake County, Ohio accepts Matricula Consular card as a valid form of ID Illegal Alien Raped Little Girl For Weeks in North Carolina/font>San Francisco Woman Killed by Illegal Immigrant deported 5 Times!!! Donald Trump's Illegal Alien comments stirs controversay Nevada starts issuing drivers licenses to illegals Costa Mesa and Santa Ana, California added to Sanctuary City List Immigrant status rule rescinded in Oregon Family of DUI Homicide Victim Steaming Mad Feds Failed to Deport Illegal Immigrant Killer Who's Leading Immigration Reform in the House?

ICE to expand immigrant monitor program Supreme Court to review Arizona Immigration Law Watch the illegal aliens walk into the US at this great site Sanctuary is a term for cities, counties, or states that are defying a federal law relative to the various government agencies being required to assist the federal government with their illegal immigrants. In 1996 a federal law was passed called the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIR) that requires local governments to cooperate with Department of Homeland Security's Immigration and Customs Enforcement (ICE). Contrary to this law, many of these governments are officially or unofficially defying the law and have passed various local policies to ignore the federal law and not question the status of suspected illegal immigrants.

Those in defiance of the law prefer to call them undocumented workers and help protect the illegal immigrants from being deported. ' The simple truth is that we've lost control of our own borders, and no nation can do that and survive.' – Ronald Reagan States with one or more cities offering sanctuary to illegal immigrants States offering sanctuary to illegal immigrants One or more cities considering sanctuary status No cities with sanctuary status Recent illegal immigration and sanctuary city news updates:,,,,,,,,,,,,,,,,,,,,,,,, Click on state or territory for more information * We have been contacted by Steve Salvi of Ohio Jobs & Justice PAC (OJJPAC.org) regarding the use of his sanctuary city list.

Versions of his list are all over the internet, some of which make no reference to the source. The cities listed here came from a variety of lists and since then I have added to that base list.

As a result the list here is from a variety of sources but we do want to acknowledge the hard work put in by Steve to create his list. Be sure to stop by his site for his latest list. Top Selling 'Right Minded' Books at Amazon.