Credit Based Scoring And Insurance 199f016

Insurance companies use different sources of information about a person that supplements an application. For auto coverage, motor vehicle reports are ordered. For home coverage, physical inspections may be needed. Another tool that is widely used for underwriting is credit-based scoring. Use of this method was once controversial but, by and large, it has gained public acceptance. Its origin lies in the commercial use of credit histories.

Banks and other lenders have long used credit history in their lending process. A discovery then occurred which prompted a new use. For some reason, certain elements of a person’s credit history are predictive of whether that person is likely to suffer insurance claims. A credit-based score is developed from information such as amount of debt, number of credit cards held, pattern of payments, defaults, etc. Credit-based scores are used to help decide the acceptability of applicants. They may also help a company choose to modify the premium charged to existing clients.

Insurers, after battles with regulators and consumers regarding the use of such information, routinely use credit-based scoring. It is hailed as an aide to improve their pricing and profitability. However, there is a reluctance to provide details on how scores are developed. Companies have claimed that the information is considered confidential. Insurers fear that revealing details on credit-based scores would result in losing valuable information to competitors. While a handful of states have banned the use of credit-based scoring, most others have approved its use (along with guidelines for its use).

If you have been affected by a credit-based score, you’re entitled to know. You can also get information on how to be sure that your credit history is accurate. An insurance professional is a good source to help you with questions on how your credit may be affecting your insurability.

For more information please visit us at The Liberty Company Insurance Brokers, or call us at (818)914-3960

Article Courtesy of Rough Notes

The Liberty Company Insurance Brokers Acquires C.M. Meiers

Woodland Hills, Calif.-based C.M. Meiers Co. Inc. was auctioned on Friday at a U.S. bankruptcy court near Los Angeles, with three competing bidders pushing the sales price to $1.375 million for the troubled brokerage’s assets and assumption of its liabilities, including between $400,000 to $1 million required to put the 76-year old firm back in trust.

The United States Bankruptcy Court Central District of California San Fernando Valley Division courtroom was packed on Friday afternoon with nearly 50 people, many of those were formerly producers at the company and their attorneys, who argued against transferring their books of business and client data to any winning bidder.

Attorneys for some of C.M. Meiers’ clientele were also on hand representing “highly confidential” clients arguing to ensure the security of their clients’ names and information.

The brokerage was sold by appointed trustee Bradley D. Sharp. Following a Chapter 11 bankruptcy filed on Jan. 9, the brokerage was placed in the hands of a Sharp by the court.

The winning bidder was Woodland Hills-based Liberty Co., which also has offices in San Jose, Salinas and Irvine.

The 25-year-old brokerage, which works with providers such as Mercury, Safeco, Hartford and Fireman’s Fund, has nearly $50 million in premium, and is a member of the Atlantic Pacific Insurance Brokers affiliation of Independent Insurance Agencies, according to its website. Liberty owners and attorneys hurried into a private conference room to hash out the details of the purchase and were not available to comment following the auction.

Liberty beat out two other firms. Woodland Hills-based Affinity was the stalking horse bidder. Then there was Woodland Hills-based Capitol Financial Services, owned by Gensar Saleigh, who sued C.M. Meiers and was awarded nearly $400,000 in damages plus attorneys’ fees by a commercial arbitration tribunal over a breach of contract suit brought by Capital.

Congratulations to the Liberty Company!

Click here to read the full article

Article courtesy of Insurance Journal

Please visit our website at The Liberty Company Insurance Brokers, or call us at (818)914-3960.

Sometimes Less is less

Car ownership is a large part of the family budget for most households and a major expense is insurance. Ever since automobile insurance has been offered; buyers have been sensitive to how much it costs. Many insurance company ads focus on price and new customers are acquired by companies who offer protection at a lower price.

 Many car owners have been attracted to purchasing minimum coverage. Several insurance companies are gaining customers by specializing in auto policies that contain just enough coverage to meet a given state’s financial responsibility laws.

 On a positive note, offering minimum coverage is a far better alternative to operating a car without insurance and many problems are caused by the accidents caused by uninsured drivers. On the neative side, coverage that meets state law minimums may be inadequate for the needs of many drivers.

 Car owners who place an emphasis on price may be ignoring the possibility that minimum coverage policies may not protect their own cars that are damaged in collisions or are lost by theft. Further, minimum coverage policies are of little help in major accidents that a driver may cause. Consider the legal plight of a driver who has a policy that offers a maximum of $15,000 and that driver hits a passenger-filled car and causes injuries and damage totaling more than $50,000? If sued, that driver will still be responsible for all of the claims that exceed the limits of the minimum coverage policy.

 Insurance protection works best when it provides PROPER protection. Minimum coverage policies may be more affordable, but they may end up costing their customers far too much when serious accidents occur. It’s important to contact an insurance professional to determine what coverage you need and then find out the best way to pay for it.

Article courtesy of Rough Notes.  For more information please visit us at The Liberty Company Insurance Brokers, or call (818)914-3960

Don’t Dine and Drive

Distracted drivers cause accidents. While you may suspect that this article is going to provide another warning about the danger of using cell phones in traffic….this warning is much more low-tech. While having conversing on cell phones behind the steering wheel continues to cause problems, a bigger problem lies with plain old eating and drinking.

Besides the fact that most food-related accidents happen in the morning (prime eating time), the most popular food distractions are:

• Coffee
• Hot soup
• Tacos
• Chili
• Hamburgers
• Barbecue
• Fried chicken
• Jelly Donuts
• Soft Drinks
• Chocolate

A lot of preparation accompanies the act of eating and drinking. Consider fumbling around with sandwich wrappers, adding sweeteners or cream to tea or coffee, putting in straws for cold drinks (how about getting poked in the eye with a straw), devoting one arm/hand for handling food or drink, dealing with condiments. Drivers who are eating/drinking also face reacting to spills; particularly when it involves something very messy or worse, very hot.

The key issue for drivers to remember is that, no matter one’s amount of experience; driving is difficult and dangerous. All forms of distraction should be avoided, or at least kept to a minimum. You and the persons sharing the roadways with you will be better off if you focus on driving and not on a meal.

For more information please visit The Liberty Company Insurance Brokers, or call us at(408)-246-5666

Merry Christmas and Happy Holidays!

Merry Christmas from everyone at the Woodland Hills Office!!

 

 

 

 

 

 

 

 

 

 

 

Where’s Esther?

Visit us at The Liberty Company Insurance Brokers, or call (818)914-3960.

Santa Clara’s New Office Location

The Liberty Company Insurance Brokers is proud to announce that effective  on December 9th, 2011, the Santa Clara office will be moving to its new home in…

The Liberty Company Insurance Brokers

2107 N. First Street, Suite 370, San Jose, CA 95113

please make note of the change and come visit us at our new office!

For more information please visit us at The Liberty Company Insurance Brokers, or call (408)246-5666

 

Welcome Daniel Law!

The Liberty Company Insurance Brokers Inc. is pleased to announce Daniel Law has joined the organization as Branch Manager of the Santa Clara location.  Dan has been in the insurance industry since graduating from college and has focused his efforts on helping businesses across a wide range of industries including high-tech, life sciences, non-profit and construction.  Over the years, he has committed himself to understanding the industries and specific business goals of his customers so he can more readily address their needs and concerns.  With a focus on risk control, Dan has become a valuable asset to his clients ranging from small family-run businesses to international corporations.  Dan has been awarded his Associate in Risk Management (ARM) and Construction Risk and Insurance Specialist (CRIS) designations.

 Dan was born and raised in San Jose.  He graduated from Bellarmine College Prep High School and earned a business degree from the University of San Diego. Dan and his wife Michelle recently welcomed their first child. His hobbies include golf, running and hiking.

For more information please visit The Liberty Company Insurance Brokers or call (408)246-5666

Welcome Daniel R’bibo and The Liberty Entertainment Insurance Services!!!

The Liberty Company Insurance brokers would love to welcome Daniel R’bibo and the Liberty Entertainment Insurance Services, LLC. Daniel R’bibo has more than enough clients to keep himself busy.  In one market, he is reportedly without a peer—serving the insurance needs of film-school students.

“Daniel has made incredible insurance inroads for us,” said Barbara Boyle, chair of the department of theatre, film and television at the University of California, Los Angeles. 

“We received a grant from the Bill and Melinda Gates Foundation for students to shoot eight films all over the country on public education in the United States.  There were a lot of potential risks to deal with,” Boyle explained.

The traditional entertainment insurance marketplace was too expensive for these students to purchase their insurance.

But R’bibo, President at the Liberty Entertainment Insurance Services, LLC, was able to cover the programs they were producing under one policy.  This allowed the school to bypass standard minimum premiums, saving the students thousands of dollars. R’bibo is now working with Boyle to enroll her students to cover all their film students and the department’s 200-plus productions.

In another instance, R’bibo worked the same magic with the film students at the Academy of Art University in San Francisco, the largest art school in the United States.

Daniel graduated from California State University, Northridge and is now currently the president of The Liberty Entertainment Insurance Services.

For any information please feel free to contact Daniel at (818)914-3983 or email Drbibo@libertycompany.com

Become A Better Driver

When drivers get behind the wheel of their cars they find a growing issue; the other guys and gals behind their wheels are ruder, more aggressive and are causing more accidents. Surveys typically offer the following information:

• Most drivers have recently operated their car, truck or SUV in a risky manner
• Many drivers think that other classes of drivers should have their driving skills regularly tested
• The majority of drivers think that their driving habits are fine…everyone else is the problem

It is useless for individual drivers to look any further for solutions than themselves. The only thing that is under a driver’s control is his or her own driving behavior. While you can’t predict what another driver is going to do, you can make a stronger effort to make the roads and streets safer.

Obey traffic lights, signs and road markings. All of these are important methods to control traffic and minimize accidents. Just try to figure out how much time you “save” by tailgating, lane changing and running traffic lights. If you save anything, it’s seconds, not minutes. Also, if you are involved in an accident, you’ve just lost any time ever gained by risky driving. Insurance paperwork and accident reports can claim hours and days of your life. If time is important to you, then take the time to pay attention to the rules of the road.

You will also find it healthier and safer to avoid paranoia. The other drivers in the other cars and trucks are not out to get you. Don’t take things personally since the silly things that happen in cars are usually mistaken or mindless, not malicious. Just relax and concentrate on your own driving. Yield right of way to others, stop for school buses, and watch for pedestrians and bicyclists. The more patient, respectful, and attentive drivers there are on the road, the better it will be…for all of us (and our insurance rates).

For more information please visit us at The Liberty Company Insurance Brokers, or call (818)914-3960.

Article courtesy of Rough Notes

Non-Owned Auto Coverage

Employees routinely use their own vehicles in their jobs or just to run errands for their employer. Does your company have protection in case of an accident and both your worker and your company are sued? If your company has a business auto policy, it should include coverage for ‘non-owned’ automobiles. These are vehicles owned by others (such as an employee) that are used in the business of the company. Generally a business auto policy only protects against losses involving company-owned vehicles, so it is important to add “non-owned” coverage.

Basic business auto insurance only covers employees while operating a company-owned vehicle to perform company business. An employee’s personal automobile policy typically excludes business use; so a coverage gap may exist if an employer’s vehicle policy is not modified to handle non-owned vehicles.

Another important consideration is whether the amount of non-owned coverage is sufficient. Any non-owned auto liability limits should be high enough to protect both the business and the employee. A company has to evaluate its particular coverage need in order to determine the proper level of coverage. Including ‘non-owned’ auto liability coverage on the business policy will provide coverage for the business over any deficiency in limit from the employee’s personal auto policy. This is coverage for the BUSINESS, not the employee.

If the company does not own any automobiles, it is possible to purchase business auto liability coverage for only the danger of loss involving its use of ‘hired and non-owned’ vehicles. The ‘hired’ portion would cover business travel and vehicle rentals; the ‘non-owned’ portion would cover employees using their own auto in the business.

Even if a business rarely uses non-owned autos, it only takes one serious accident to create a significant loss for the business. You should find an opportunity to discuss this coverage with an insurance professional.

For more information please visit The Liberty Company Insurance Brokers, or call (818)914-3960

Article Courtesy of Rough Notes