Headline News: Home & Auto

WEST VIRGINIA CONTINUES TO LEAD COLLISION LIKELIHOOD LIST

PR Newswire — September 28, 2009

BLOOMINGTON, Ill., Sept. 28 /PRNewswire/ — The number of vehicles on U.S.

roadways has grown by 7 percent over the last five years. But the number of times those vehicles have collided with deer has swelled by much more than that.

Using its claims data, State Farm, the nation’s leading auto insurer estimates

2.4 million collisions between deer and vehicles occurred in the U.S. during the two-year period between July 1, 2007 and June 30, 2009 (100,000 per month).

That’s 18.3 percent more than five years earlier. To put it another way, one of these unfortunate encounters occurs every 26 seconds (although they are much more likely during the last three months of the year and in the early evening).

MORE DEER-VEHICLE COLLISIONS

Among the 35 states where at least 7,000 deer-vehicle collisions occur per year (we are not including the percentage changes in the other 15 states plus D.C.

because the lower volume of total collisions makes the percentage changes less credible), New Jersey and Nebraska have posted the largest increases, 54 percent. Kansas is next at 41 percent. Deer-vehicle collisions have jumped by 38 percent in Florida, Mississippi and Arkansas. Then come Oklahoma (34 percent) and West Virginia, North Carolina and Texas (33 percent).

U.S. map showing percentage change in deer-vehicle collisions by state

LIKELIHOOD OF DEER-VEHICLE COLLISIONS

For the third year in a row, West Virginia tops the list of those states where a collision with a deer is most likely (for any one vehicle). Using its claims data in conjunction with state motor vehicle registration counts from the Federal Highway Administration, State Farm calculates the chances of a West Virginia vehicle striking a deer over the next 12 months at 1 in 39. Such an encounter is even more likely in West Virginia than it was a year ago.

Michigan remains second on that list. The likelihood of a specific vehicle striking a deer there is 1 in 78. Pennsylvania (1 in 94) and Iowa (1 in 104) remain third and fourth respectively. Montana (1 in 104) moved up three places to fifth.

Arkansas and South Dakota each dropped a spot to sixth and seventh. Wisconsin remains eighth. North Dakota and Virginia round out the top 10.

The state in which deer-vehicle collisions are least likely is still Hawaii (1 in 9,931). The odds of any one vehicle hitting a deer in Hawaii during the next year are roughly equivalent to the odds of randomly picking a piece of clover and finding it has four leaves.

U.S. map showing likelihood of deer-vehicle collision by state

Chart listing likelihood of vehicle-deer collision by state

The average property damage cost of these incidents was $3,050, up 3.4 percent from a year ago.

According to the Insurance Institute for Highway Safety, deer-vehicle collisions in the U.S. cause more than 150 fatalities each year.

AVOIDING DEER-VEHICLE COLLISIONS

These collisions are more frequent during the deer migration and mating season in October, November and December. The combination of growing deer populations and the displacement of deer habitat caused by urban sprawl are producing increasingly hazardous conditions for motorists and deer.

“State Farm has been committed to auto safety for several decades and that’s why we want to call attention to potential hazards like this one,” said Laurette Stiles, State Farm Vice President of Strategic Resources. “We hope our updated information will inspire motorists to make safe decisions.”

Here are tips on how to reduce the chances that a deer-vehicle collision involving your vehicle will be part of the story we tell in next year’s version of this news release:

    –  Be aware of posted deer crossing signs. These are placed in active deer

        crossing areas.

    –  Remember that deer are most active between 6 and 9 p.m.

    –  Use high beam headlamps as much as possible at night to illuminate the

        areas from which deer will enter roadways.

    –  Keep in mind that deer generally travel in herds - if you see one, there

        is a strong possibility others are nearby.

    –  Do not rely on car-mounted deer whistles.

    –  If a deer collision seems inevitable, attempting to swerve out of the

        way could cause you to lose control of your vehicle or place you in the

        path of an oncoming vehicle.

About State Farm

State Farm insures more cars and homes than any other insurer in theU.S., is the leading insurer of watercraft and is also a leading insurer in Canada. State Farm’s 17,700 agents and 68,600 employees serve 81 million policies and accounts

- more than 78.7 million auto fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 31 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com or in Canada statefarm.ca.

SOURCE State Farm

PR Newswire — September 21, 2009

Latest issue of consumer newsletter offers tips on disaster recovery

HARRISBURG, Pa., Sept. 21 /PRNewswire-USNewswire/ — At the mid-point of the

2009 Atlantic hurricane season, state Insurance Commissioner Joel Ario today reminded consumers to make sure their insurance policies are up to date.

“Hurricane damage usually comes in the form of property damage due to trees falling or power outages from high winds or flooding, so it important to ensure your insurance policy is up to date and covers the damage these storms can cause,” Ario said, recalling the serious impact that the remnants of Hurricane Ike had in western Pennsylvania one year ago.

“Insurance policy language is very specific about what damage is covered; a key example being that a standard homeowners insurance policy does not include flood protection,” he added. “Consumers should review their insurance policies at least once a year with their insurance agent to note any gaps in coverage that could prove costly.”

The Atlantic hurricane season runs from June 1 - November 30. If a storm strikes, Commissioner Ario says it is important to stay calm and offers these tips for dealing with the aftermath:

    –  Before making any repairs to your house, make a list of the damage and

        take photos or video;

    –  Protect your home from further damage by making temporary repairs until

        your insurance company is able to advise you. Save any receipts for

        materials purchased for repairs. Do not throw away damaged property

        until the claims adjuster advises you to do so;

    –  Do not make any permanent repairs until your insurance company has

        inspected the property and you have reached an agreement on the cost of

        repairs. If you make permanent repairs before the adjuster has seen the

        damage, your claim could be denied;

    –  Most damage resulting from fallen trees is covered by your homeowner’s

        policy. Check with your agent or company before calling a tree removal

        service as removal costs may also be covered. Also, you may be held

        responsible if one of your trees has fallen on a neighbor’s property.

        Again, check with your agent or company; and

    –  If your claim is denied, review the terms of your policy for what is or

        is not covered. You may also file an appeal to your insurance company’s

        claim manager. If questions remain, feel free to contact the Insurance

        Department.

The current edition of Consumer News You Can Use, the Office of Consumer Liaison’s quarterly newsletter, discusses hurricane season as well as Ready.Pa, the state’s campaign for consumers to “Be Informed, Be Prepared, and Be Involved.” To download a copy of the newsletter or read a brochure on disaster preparedness,visit www.insurance.state.pa.us.

Consumers with questions may also call the Insurance Department’s toll-free, automated consumer hotline at (877) 881-6388, or contact any of the department’s Bureau of Consumer Services’ regional offices: Harrisburg at (717) 787-2317; Philadelphia at (215) 560-2630; or Pittsburgh at (412) 565-5020.

    CONTACT:  Rosanne Placey or Melissa Fox

    (717) 787-3289

SOURCE Pennsylvania Department of Insurance

PR Newswire — September 17, 2009

SAN DIEGO, Sept. 17 /PRNewswire-FirstCall/ — Solera Holdings, Inc. (NYSE: SLH), the leading global provider of software and services to the automobile insurance claims processing industry, today announced that it has signed a definitive agreement to purchase up to 100% of the capital stock of AUTOonline GmbH Informationssyteme, a leading European eSalvage vehicle exchange platform from DEKRA Automobil GmbH and other sellers.

Using its online platform, AUTOonline brings together buyers and sellers of salvage and fleet remarketing vehicles. AUTOonline has established operations in Germany, Poland and Turkey and has expanded into a number of additional European markets, including France, Spain and Greece, as well as Mexico. Leading insurance companies list over 3,700 salvage vehicles per-day on AUTOonline’s platform. Over 4,100 buyers, such as vehicle rebuilders, dismantlers and dealers competitively bid on these vehicles. In addition to salvage vehicle exchange, AUTOonline also provides value verification and fleet remarketing services.

Under the terms of the definitive agreement, Solera will purchase 85% of AUTOonline’s outstanding share capital at closing for approximately $85 million (euro 59.5 million). In future periods beginning after December 31, 2009, Solera has the right to purchase and the remaining sellers have the right to sell the remaining 15% stake in AUTOonline at a purchase price of ten times AUTOonline’s consolidated EBITDA (as defined in the definitive agreement) for the most recently completed fiscal year. The entire purchase price will be paid in cash.

The transaction is subject to certain conditions to closing and is expected to close in the second quarter of our fiscal year 2010. All amounts payable to the sellers are payable in Euros, and all U.S. Dollar amounts above assume an exchange rate that approximates the current rate.

After payment of the approximately $85 million (euro 59.5 million) at closing, we will have approximately $165 million of cash on our balance sheet and no amounts outstanding under the Senior Secured Revolving Credit Facility portion of our Amended and Restated First Lien Credit and Guaranty Agreement.

“The acquisition of AUTOonline allows us to extend our core offering to now include the disposition of salvage vehicles and is consistent with our strategy of bringing high-value essential services to the auto claims process. We are happy to report this successfully concludes the second of the two large international acquisitions we referenced in our November 2008 prospectus.

AUTOonline helps customers obtain cost savings, transparency and efficiency by providing an electronic marketplace for insurance companies, independent assessors, fleet companies, auto dismantlers and rebuilders to buy and sell salvage vehicles across geographies. Additionally, we plan to extend our combined offerings into vehicle valuations. We also believe the acquisition of AUTOonline will further enhance our relationships with our insurance company and independent assessor customers,” said Tony Aquila, Solera’s Founder, Chairman and Chief Executive Officer.

Our preliminary estimate of AUTOonline’s revenue and EBITDA for the year ending December 31, 2009 is approximately $25.9 million (euro 18.1 million) and $9.6 million (euro 6.7 million), respectively. Although we do not plan to update our previously issued financial outlook for fiscal year 2010 to include AUTOonline’s financial results until our second fiscal quarter 2010 earnings release and conference call, currently anticipated for February 2010, our preliminary estimate, excluding the impact of any potential synergies, is that the acquisition will be dilutive to our fiscal year 2010 GAAP EPS by $0.06 and accretive to our Adjusted EPS by $0.02. We currently do not expect that the acquisition will have a material impact on our fiscal year 2011 GAAP EPS and we currently expect the acquisition to be accretive to fiscal year 2011 Adjusted EPS.

About Solera

Solera is the leading global provider of software and services to the automobile insurance claims processing industry. Solera is active in over 50 countries across six continents. The Solera companies include Audatex in the United States, Canada, and in more than 45 additional countries, Informex in Belgium, Sidexa in France, ABZ in The Netherlands, HPI in the United Kingdom, Hollander serving the North American recycling market, and IMS providing medical review services. For more information, please refer to the company’s website at http://www.solerainc.com.

Non-GAAP Financial Measures

We use a number of non-GAAP financial measures that are not intended to be used in lieu of GAAP presentations, but are provided because management believes that they provide additional information with respect to the performance of our fundamental business activities and are also frequently used by securities analysts, investors and other interested parties to facilitate the evaluation of our business on a comparable basis to other companies. The three primary non-GAAP financial measures that we use are Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted share. We believe that Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per diluted share are useful to investors in providing information regarding our operating results and our continuing operations. We rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management team in connection with our executive compensation and bonus plans. Adjusted EBITDA also allows us to compare our current operating results with corresponding prior periods as well as to the operating results of other companies in our industry.

We present Adjusted Net Income and Adjusted Net Income per diluted share because we believe both of these measures provide useful information regarding our operating results in addition to our GAAP measures. We believe that Adjusted Net Income and Adjusted Net Income per diluted share provide investors with valuable insight into our profitability exclusive of unusual adjustments, and provide further insight into the cash impact resulting from the different treatments of goodwill for financial reporting and tax purposes.

Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per diluted share have limitations as analytical tools, and you should not consider them in isolation or as a substitute for net income, earnings per share and other consolidated income statement data prepared in accordance with accounting principles generally accepted in the United States. Because of these limitations, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted share should not be considered as a replacement for net income. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted share as supplemental information.

Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net income

(loss) allocable to common stockholders/unitholders, excluding interest, taxes, depreciation and amortization, stock-based compensation, restructuring charges, other income - net and acquisition-related costs. Acquisition-related costs consist of transaction costs (including costs associated with potential acquisitions that we did not ultimately pursue and acquisitions not yet completed at June 30, 2009 and therefore charged to results of operations in contemplation of our adoption of Statement of Financial Accounting Standards No.

141 (revised), Business Combinations, in the first quarter of fiscal year 2010), retention-related compensation costs, legal and professional fees, severance costs and other transition costs associated with our acquisition of the Claims Services Group from ADP in April 2006.

Adjusted Net Income is a non-GAAP financial measure that represents GAAP net income (loss) allocable to common stockholders/unitholders, plus the following

items: provision for income taxes, amortization of acquisition-related intangibles, stock-based compensation expense, restructuring charges, other income - net and acquisition-related costs. Acquisition-related costs consist of transaction costs (including costs associated with potential acquisitions that we did not ultimately pursue and acquisitions not yet completed at June 30, 2009 and therefore charged to results of operations in contemplation of our adoption of Statement of Financial Accounting Standards No. 141 (revised), Business Combinations, in the first quarter of fiscal year 2010), retention-related compensation costs, legal and professional fees, severance costs and other transition costs associated with our acquisition of the Claims Services Group from ADP in April 2006. From this figure, we then subtract a provision for income taxes to arrive at Adjusted Net Income. For periods ended June 30, 2008 and prior, we used a 33% tax rate. For periods ending after June 30, 2008, we use a 28% tax rate. We use this 28% tax rate in order to approximate our long-term effective corporate tax rate, which includes certain benefits from net operating loss carryforwards, tax deductible goodwill and amortization, and a low tax-rate jurisdiction for a certain corporate holding company.

Adjusted Net Income per diluted share is a non-GAAP financial measure that represents Adjusted Net Income (as defined above) divided by the number of diluted shares outstanding for the period.

Cautions about Forward-Looking Statements

This press release contains forward-looking statements, including statements about enhancements to our products and services, the launch of new valuation products and services and stronger customer relationships resulting from our acquisition of AUTOonline, AUTOonline’s revenue and EBITDA results for calendar year 2009 and AUTOonline’s contributions to our consolidated financial performance for our fiscal years 2010 and 2011. These statements are based on our current expectations, estimates and assumptions and are subject to many risks, uncertainties and unknown future events that could cause actual results to differ materially. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent to transactions of this nature and our business, including, without limitation: we may not complete our acquisition of AUTOonline; the failure to realize the expected benefits from our acquisition of AUTOonline; our inability to successfully integrate AUTOonline’s business, including AUTOonline’s existing employees, infrastructure and service offerings, with our existing business at reasonable cost, or at all; reliance on a limited number of customers for a substantial portion of AUTOonline’s revenues; unpredictability and volatility relating to foreign currency exchange risks associated with our consolidated financial reports that include AUTOonline’s operating results; AUTOonline’s reliance on third-party information for its software and services; impacts on AUTOonline’s business of any restructuring or severance charges in future periods; effects of system failures or security breaches on AUTOonline’s business and reputation; and country-specific risks relating to expansion into new markets, including compliance with local country laws and regulations. For a discussion of these and other factors that could impact our operations or financial results and cause our results to differ materially from those in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, particularly our Annual Report on Form 10-K for the Fiscal Year Ended June 30, 2009. We are under no obligation to (and specifically disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

SOURCE Solera Holdings, Inc.

Specialized Coverage Costs Less and Offers More

PR Newswire — September 16, 2009

WARREN, N.J., Sept. 16 /PRNewswire/ — Despite a slowed economy, many car collectors are still paying top dollar for their dream machines — and to protect them.

At the Monterey Auto Auction recently, a 1965 Shelby Daytona Cobra Coupe CSX2601 sold for $7.3 million, setting the record for the highest price paid for an American car at public auction. Nearly 500 cars sold in Monterey, CA, for a total of more than $100 million.

But Paul Franklin, worldwide underwriting manager for Chubb Personal Insurance, said many car collectors are paying too much to insure these vintage vehicles and high-powered racers, and they’re not all getting the coverage they need.

“Collector car owners often add these special cars to a standard auto policy, when they should be looking at a collector car policy,” Franklin said.

Premiums are usually lower with a collector car policy, because these cars are often lovingly cared for and used for pleasure or as part of a hobby, not everyday commuting.

“Some classic cars sit in temperature-controlled garages year-round and are only taken out for car shows and special events,” Franklin said. “Unlike the car you drive to work, which probably depreciated in value the moment you drove it off the sales lot, many of these cars are appreciating in value.”

The appreciation of a classic car’s value is another reason why owners should seek a collector car policy. With agreed value coverage, the insured value of a car is determined at the time a policy is purchased, so if the car suffers a covered total loss, there’s no question regarding valuation. Also, with proper notice, a policyholder can increase the amount of coverage on the car to proper market value anytime prior to a covered loss. Standard auto policies are based on the depreciated value of a car.

Franklin added that it’s important that collector car repairs are performed by experts in repair shops that specialize in restoring these unique vehicles. An insurance company with a deep understanding of what goes into a high-quality repair can help car owners select the right repair shops. “These cars are not just ordinary conveyances, to be quickly repaired and returned to service,”

Franklin said. “Rather, they are cherished ‘members of the family’ deserving of the best care available.”

Other features to look for in a collector car policy, according to Franklin,

include:

    –  The ability to choose a body shop for repairs;

    –  No mileage restrictions;

    –  Automatic worldwide coverage for newly acquired autos, which is

        important for collectors who travel to auto shows, in the United States

        or overseas, and sometimes make new purchases;

    –  High limits for comprehensive, collision and liability;

    –  Off-premise coverage for fire, explosion and other perils while the car

        is in the repair shop; and

    –  Replacement of damaged parts with authentic or newly handcrafted parts.

The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb’s global network includes branches and affiliates in North America, Europe, Latin America, Asia and Australia. Chubb is a worldwide leader in insuring fine homes, automobiles, yachts, antiques and other collectibles, and personal liability. Additional information on Chubb can be found at www.chubbcollectorcar.com.

SOURCE Chubb Group of Insurance Companies

PR Newswire — September 16, 2009

CHESTER, S.C., Sept. 16 /PRNewswire-USNewswire/ –The Institute for Business & Home Safety (IBHS) today officially broke ground for its disaster safety research center in Chester County, South Carolina. Unique in all the world, this lab will have the ability to subject full-sized, 2,000 square foot, one- and two-story homes, light commercial construction and agricultural buildings to a variety of hazards, including realistic Category 3 hurricanes, wind-blown fire (mimicking wildfire embers), and hailstorms.

The primary purpose of this $40 million multi-peril research facility - funded entirely by property insurance companies, reinsurers and brokers - is to identify effective methods of minimizing risk and loss to homes, businesses, and communities resulting from natural disasters.

“When finished next year, this research facility will effectively represent a quantum leap forward for building science,” notes Julie Rochman, IBHS President and CEO. “IBHS will be able to meticulously recreate a variety of natural catastrophes in a very controlled, repeatable environment. This will allow us to identify and evaluate various building material and construction techniques and systems in ways that have only been dreamed of by scientists, public policymakers and industry for many years.”

Rochman said that construction of this research center is extremely complex, yet the assembled team of professionals is on track to complete construction by spring 2010. “Keeping high winds, water, fire and hail out of homes and businesses is our goal as an organization - managing high winds, water, fire and hail in a laboratory setting presents a whole different set of challenges. We are proud to be associated with Odell Associates (architect), Walter P. Moore (structural engineers), United Engineering Group (mechanical, electrical, and plumbing), and Holder Construction (general contractor) for this historic undertaking.”

In addition, Rochman stated, all of IBHS research will be made publicly available, so that consumers and builders will know which products and systems provide the best protection against wind, water, fire and hail. This will be done both by creation of written reports, and via high-speed, high-definition video of the tests that will be shared with media and on the Web.

IBHS has been a leader in using building science to develop real-world approaches to reduce the risks posed by natural disasters and other perils.

Events in recent years, including tornadoes, hurricanes and wildfires, have given IBHS researchers opportunities for field work, during which they have learned much about how to better engineer structures against certain risks.

There remain, however, knowledge gaps that can be filled only with testing in controlled environments, which the new research center will provide.

IBHS has installed a Web camera at the construction site, which takes photos every 15 minutes and provides time lapse capabilities to see the progress of the facility’s construction over time. Click here to view the latest photos:

http://oxblue.com/pro/open/ibhs/catastrophelab

Founding insurance companies and organizations that have made this new facility possible through their financial contributions include: Alfa Insurance, Allstate Insurance Company, American Agricultural Insurance Company, American Family Insurance, American Insurance Association, Amica Insurance, Andover Companies, AAA-The Auto Club Group, AAA Northern California, Nevada & Utah, Auto-Owners Insurance Company, Bankers Insurance Group, COUNTRY Financial, Enumclaw Insurance Group, Erie Insurance, Farm Bureau Mutual Group, Farmers Insurance Group, Florida Farm Bureau Insurance Group, Gen Re, Guy Carpenter, The Hartford Steam Boiler Inspection and Insurance Company, HomeWise, Interinsurance Exchange of the Automobile Club, IPCRe Limited, Liberty Mutual Insurance Group, The Main Street America Group, MetLife Auto & Home, Mississippi Farm Bureau Casualty Insurance Company, Munich Re, Munich Re America, National Association of Mutual Insurance Companies, Nationwide Insurance, Norfolk & Dedham Group, OneBeacon Insurance Group, Property Casualty Insurers Association of America, Quincy Mutual, RenaissanceRe Risk Sciences Foundation, South Carolina Farm Bureau Mutual Insurance Company, South Carolina Wind & Hail Underwriting Association, State Farm Insurance Companies, Swiss Re, Travelers, USAA, Virginia Farm Bureau Insurance.

EDITOR’S NOTE:Video of the groundbreaking ceremony and construction at the site will be available. An animated artist’s rendering of the new research facility will be included in the feed, plus sound bites from IBHS President & CEO Julie Rochman and IBHS Chairman and State Farm Underwriting Vice President Rod Matthews. The video feed will be available Sept. 18, 2009, on the Pathfire Digital Media Gateway (DMG). If you have questions or problems in locating the story, contact Pathfire Customer Support at 888-345-0489 or support@pathfire.com.

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

SOURCE Institute for Business & Home Safety

PR Newswire — September 14, 2009

I.I.I. Study Shows Dog Bite Claims Cost Nearly $390 Million Annually

NEW YORK, Sept. 14 /PRNewswire-USNewswire/–Man’s best friend is sinking its teeth into homeowners insurance costs. Dog bites account for one-third of all homeowners insurance liability claims, costing $387.20 million in 2008, up 8.70 percent from 2007, according to the Insurance Information Institute (I.I.I.).

An analysis of homeowners insurance data by the I.I.I. found that the average cost of dog bite claims was $24,461 in 2008 (the most recent figures available) down slightly from $24,511 in 2007. Since 2003, however, the cost of these claims has risen nearly 28 percent. Additionally, the number of claims has increased 8.89 percent to 15,823 in 2008 from 14,531 in 2007.

            ESTIMATED NUMBER AND COST OF DOG BITE CLAIMS, 2003-2008

                       2003        2004        2005        2006

    Value of

     claims

     ($millions)     $324.20     $319.00     $321.10     $322.30

    Number of

     claims           16,919      15,630      14,295      14,661

    Average cost

     per claim       $19,162     $20,406     $22,464     $21,987

                       2007        2008    Percent change,   Percent change,

                                              2007-2008         2003-2008

    Value of

     claims

     ($millions)     $356.20     $387.20        8.70%            19.43%

    Number of

     claims           14,531      15,823        8.89%            -6.48%

    Average cost

     per claim       $24,511     $24,461       -0.20%            27.65%

       Source: Insurance Information Institute.

“The rise in dog bite claims over the course of the past five years can be attributable to the increased medical costs as well as the size of settlements, judgments and jury awards which have risen well above inflation in recent years,” said Loretta Worters, vice president of the I.I.I.

More than 4.5 million people in the U.S. are bitten by dogs annually, and nearly 900,000 of those–half of them children–require medical care, according to the Centers for Disease Control and Prevention (CDC). More than 31,000 Americans needed reconstructive surgery after dogs attacked them in 2006, center figures show. With more than 50 percent of bites occurring on the dog owner’s property, the issue is a major source of concern for insurers.

Dog Owner Liability

There are three kinds of law that impose liability on owners:

    –  Dog-bite statute: The dog owner is automatically liable for any injury

        or property damage the dog causes, even without provocation.

    –  “One-bite” rule: In some states, the owner is not held liable for the

        first bite the dog inflicts. Once an animal has demonstrated vicious

        behavior, such as biting or otherwise displaying a “vicious propensity”,

        the owner can be held liable. Some states have moved away from the

        one-bite rule and hold owners responsible for any injury, regardless of

        whether the animal has previously bitten someone.

    –  Negligence laws: The dog owner is liable if the injury occurred because

        the dog owner was unreasonably careless (negligent) in controlling the

        dog.

In most states, dog owners are not liable to trespassers who are injured by a dog. A dog owner who is legally responsible for an injury to a person or property may be responsible for reimbursing the injured person for medical bills, lost wages, pain and suffering and property damage.

“Although some people purchase dogs for the purpose of guarding their homes, deadbolt locks and home security systems are safe burglary deterrents and that will often earn you a discount on your insurance premium,” said Worters.

How to Protect Yourself–and Your Assets

Homeowners and renters insurance policies typically cover dog bite liability.

Most policies provide $100,000 to $300,000 in liability coverage. If the claim exceeds that limit, the dog owner is personally responsible for all damages above that amount, including legal expenses. A liability policy also provides no-fault medical coverage in the event a dog bites a friend or neighbor–this enables them to submit their medical bills directly to the homeowner’s insurance company. Homeowners can generally get $1,000 to $5,000 worth of no-fault coverage.

Most insurance companies will insure homeowners with dogs. However, once a dog has bitten someone, your insurance company may charge a higher premium or exclude the dog from coverage. Some companies require dog owners to sign liability waivers for dog bites. Some will cover a pet only if the owner takes the dog to classes aimed at modifying its behavior.

A single lawsuit–even if won–can end up costing hundreds of thousands of dollars. And the greater a person’s assets, the morepotentially is at risk. The personal liability coverage available through a standard homeowners or automobile policy simply may not be enough. Therefore, the I.I.I. advises homeowners to consider purchasing a personal excess liability policy. Also known as an umbrella liability policy, it protects you against personal liabilities, such as dog bites, that could impact a substantial portion of your assets.

The amount of umbrella liability coverage usually ranges from $1 million to $10 million, and covers broad types of liability. Most insurance companies have required minimum amounts of underlying coverage–typically at least $250,000 of protection from your auto policy and $300,000 of protection from your homeowners policy. If you own a boat, then you must also have boat insurance with a specified minimum amount of coverage. Personal excess liability insurance is relatively inexpensive. The first $1 million of coverage costs about $150 to $300 per year, the second million about $75, and subsequent increments of $1 million cost about $50 per year.

The best way to protect yourself is to prevent your dog from biting anyone in the first place. The most dangerous dogs are those that fall victim to human shortcomings such as poor training, irresponsible ownership and breeding practices that foster viciousness or neglect and abuse. To reduce the chances of a dog biting someone, the following steps are recommended by the CDC:

    –  Consult with a professional (e.g., veterinarian, animal behaviorist, or

        responsible breeder) to learn about suitable breeds of dogs for your

        household and neighborhood.

    –  Spend time with a dog before buying or adopting it. Use caution when

        bringing a dog into a home of with an infant or toddler. Dogs with

        histories of aggression are inappropriate in households with children.

    –  Be sensitive to cues that a child is fearful of or apprehensive about a

        dog and, if so, delay acquiring a dog. Never leave infants or young

        children alone with any dog.

    –  Have your dog spayed or neutered. Studies show that dogs are three times

        more likely to bite if they are NOT neutered.

    –  Socialize your dog so it knows how to act with other people and animals.

    –  Discourage children from disturbing a dog that is eating or sleeping.

    –  Play non-aggressive games with your dog, such as “go fetch.” Playing

        aggressive games like “tug-of-war” can encourage inappropriate behavior.

    –  Avoid exposing your dog to new situations in which you are unsure of its

        response.

    –  Never approach a strange dog and always avoid eye contact with a dog

        that appears threatening.

    –  Immediately seek professional advice from veterinarians, animal

        behaviorists, or responsible breeders if the dog develops aggressive or

        undesirable behaviors.

“Most dogs are friendly, loving members of the family,” said Worters. “But even normally docile dogs may bite when they are frightened or when protecting their puppies, owners or food. Ultimately, the responsibility for properly training and controlling a dog rests with the owner.”

For related video, go to:

    –  How Can Children Avoid Dog Bites

    –  Dog Bite Liability

For more information about insurance, go to the I.I.I. Web site.

The I.I.I. is a nonprofit, communications organization supported by the insurance industry.

SOURCE Insurance Information Institute

PR Newswire — September 14, 2009

Superior Construction and Elevation Are Key to Home and Business Survival

TAMPA, Fla., Sept. 14 /PRNewswire-USNewswire/ — Government minimum flood elevation requirements for properties vulnerable to storm surge throughout the Gulf Coast region are woefully inadequate, according to a new study of property damage caused by Hurricane Ike, which struck the Bolivar Peninsula near Galveston, Texas one year ago yesterday, Sept. 13, 2008.

The study, HURRICANE IKE: Nature’s Force vs. Structural Strength, reveals that significantly more Gulf Coast homes and businesses are imperiled by disastrous flooding from storm surge than previously recognized by property owners or policymakers. The report was issued by the Institute for Business & Home Safety (IBHS), which is an independent, not-for-profit applied research and communications organization supported by property insurers and reinsurers.

“Lessons learned from Hurricane Ike, which is the third-costliest hurricane on record, should be used by vulnerable communities from Texas to Maine to effectively reduce property damage in all hurricane-exposed areas,” said IBHS President and CEO Julie Rochman.

“Simply put, the study found that many properties are not built high enough to withstand storm surges, tightly enough to prevent water from causing interior damage or strongly enough to prevent damage when high winds strike.”

The IBHS study questions the current basis for elevating properties along the Gulf Coast and urges the National Flood Insurance Program (NFIP) to provide greater incentives for building well above the minimum elevations now in place.

More than 50 percent of the nation’s population lives within 50 miles of the coast, with more than $9 trillion of insured coastal property vulnerable to hurricanes. The NFIP, which is the federal government program that provides flood insurance to homes and businesses, also establishes base flood elevation

(BFE) levels for properties.

According to the study’s findings, the BFE requirement for homes on Texas’

Bolivar Peninsula ranged between 13 feet for homes built in the 1970s and 17 feet to 19 feet for homes built beginning in 1983. All but a handful of properties within the first few rows of houses from the coast, built to even the highest elevation requirements, were washed away during Hurricane Ike.

By contrast, the study found that 10 homes on the Bolivar Peninsula designed and built under IBHS’s building code-plus new construction program, Fortified. .

for safer living(R), survived the storm sustaining minor damage. The Fortified homes had outdoor decks at 18 feet that were destroyed, but the homes, which were elevated to 26 feet, survived.

According to IBHS Senior Vice President of Research and Chief Engineer Dr. Tim Reinhold, most homes in coastal areas are built to or slightly above 100-year base flood elevations. “A 100-year flood means that the level of flood water has a 1 percent chance of being equaled or exceeded in any single year. However, it is well recognized in the engineering community that coastal homes built to this level have a 26 percent chance of being flooded or demolished over the life of a 30-year mortgage. This chance increases to about 40 percent in a 50-year period,” Dr. Reinhold said.

“All it takes is a breaking wave about 2 feet above the base of a house to knock out the bottom floor or destroy a frame house,” explained Reinhold. “The chances of destruction can be significantly reduced by employing what has been learned about the importance of proper elevation, which can be relatively inexpensive when building a coastal home,” he continued. “For example, building to a 500-year base flood elevation reduces the chance of storm surge exceeding the base elevation to about 10 percent in a 50-year period.”

In addition, the IBHS study achieves the following:

    –  provides a detailed, real world performance evaluation of superior

        construction techniques when tested by a truly extreme weather event;

    –  sets the course for rigorous laboratory testing to explore and resolve

        remaining issues with specific building materials and systems;

    –  proves (once again) the importance of enacting and enforcing strong,

        appropriate building codes - and proper elevation requirements in storm

        surge-prone areas; and

    –  showcases the leading edge of construction and real estate markets,

        i.e., developers choosing to design buildings to the highest standard,

        because they understand the favorable cost/benefit ratio and want to

        meet consumer demand for safety and durability.

“Beyond the actual findings, our report includes a very practical, easy-to-follow retrofit guide for Texans in coastal areas to use. The guide takes into account the current Texas building code requirements and outlines specific retrofit options that homeowners and residents can use to harden their property by doing things such as strengthening their roofs,” Ms. Rochman said.

EDITOR’S NOTE: Download a copy of the full report. View a low resolution video of the Fortified homes that survived Hurricane Ike. To request a broadcast quality version of the video, please contact Candace Iskowitz, Public Affairs Manager, at ciskowitz@ibhs.org or (813) 675-1047.

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

SOURCE Institute for Business & Home Safety

PR Newswire — September 9, 2009

CARLSBAD, CA, Sept. 9 /PRNewswire-FirstCall/ - EcoBlu Products, Inc., (OTCBB:
ECOB) announced today that EcoBlu Products protected with BLUWOOD(TM) technology were used in the construction of a home on the hit ABC television show Extreme Makeover Home Edition. The episode featured BLUWOOD(TM) coated lumber that was used to frame the entire home. EcoBlu wood components protected by BLUWOOD(TM) technology resist mold, rot and termites.

The episode featuring EcoBlu’s BLUWOOD(TM) treated lumber was centered on Connie Chapin of Seattle, Washington. “A hard working single mother and avid swimmer who turned her backyard swimming pool into a much needed community resource.(1)”
Unfortunately, her home was on the brink of collapse. Despite the rainy weather, Ty and the gang were able to come to the rescue building the Chapin family a new home.

In another episode featuring the same BLUWOOD(TM) technology, a family lost their husband and father to an illness caused by mold growth in their old property. The BLUWOOD(TM) technology was chosen because of its resistance to moisture, mold, fungus, rot and termites. “This was a real tragedy for this family and although we were not involved with this particular project, we are proud that the BLUWOOD(TM) technology was utilized to help this family,” said Steve Conboy, President and CEO of EcoBlu Products. “This type of heartbreak is all too often an occurrence and in most cases could have been avoided by using the BLUWOOD(TM) technology,” added Conboy.

Mold related claims average between $3 and $8 billion annually as reported by the Mold Policy and Cases Weatherization Assistance Program, and homeowners insurance usually excludes or limits claims due to mold-related damage.

To view the Extreme Makeover Home Edition video on YouTube go to:

http://www.youtube.com/ecobluproducts#play/all/uploads-all/1/n6INjD-FRWQ

To view videos about EcoBlu Products protected with BLUWOOD(TM) technology on YouTube go to:

www.youtube.com/ecobluproducts

About EcoBlu Products, Inc.

EcoBlu Products, Inc. is a manufacturer of proprietary wood products coated with an eco-friendly chemistry that protects against mold, rot, decay, termites and value added fire. EcoBlu products protected by BLUWOOD(TM) technology is the ultimate in wood protection, preservation, and fire safety to building components constructed of wood; from joists, beams and paneling, to floors and ceilings.

The Company is committed to the development, marketing and sales of environmentally-responsible building materials. EcoBlu products are ready to deliver the winning edge to builders and the environment with its sustainable green product line.

Safe Harbor statement under the Private Securities Litigation Reform Act of
1995: The statements in this release relating to completion of the acquisition and the positive direction are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties which may arise, the failure to obtain necessary approvals, the future market price of EcoBlu Products, Inc. common stock and the ability to obtain the necessary financing. This release has not been reviewed or approved by ABC Extreme Make Over Home Edition and nothing in this press release should be construed as an endorsement by them.
    —————————–
    (1) As stated on the Extreme Makeover Home Edition website - “Season 5 -
        Chapin Family”.
    http://abc.go.com/shows/extreme-makeover-home-edition/episode-guide/chapin-family/69950

SOURCE EcoBlu Products, Inc.

PR Newswire — September 9, 2009

Suspicious car fires up 20 percent, suspicious auto glass claims up 76 percent and product liability up 90 percent

DES PLAINES, Ill., Sept. 9 /PRNewswire-USNewswire/ — A review of suspicious insurance claims referred to the National Insurance Crime Bureau during the first half of 2009 shows increases in nearly all referral categories compared with the first half of 2008.

A total of 41,619 “questionable claims” were referred to NICB in the first half of 2009 compared with 36,743 received during the same period in 2008. These are claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of fraud. The full report is available at www.nicb.org.

As in the previous report released last April, this review reveals an increase in questionable claims submitted to NICB member insurance companies under property, casualty, commercial, vehicle and miscellaneous referral reasons.

“While there has been modest improvement within a few categories of referrals, the overall number of questionable claims for the first half of 2009 is 13 percent higher than it was at this time last year,” said Joe Wehrle, NICB President and Chief Executive Officer.

Wehrle added, “We will aggressively investigate fraudulent claims to protect our member companies and their policyholders. But all Americans should know — whether or not they are insured by one of our 1000-plus member companies — they benefit from our efforts as our success over fraud helps keep insurance costs affordable.”

About the National Insurance Crime Bureau: headquartered in Des Plaines, IL, the NICB is the nation’s leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through information analysis, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,000 property and casualty insurance companies and self-insured organizations.

Anyone with information concerning vehicle theft and insurance fraud can report it anonymously by calling toll-free 1-800-TEL-NICB (1-800-835-6422) or by visiting our web site at www.nicb.org.

SOURCE National Insurance Crime Bureau

Coastal Residents Are Urged to Take Precautions to Ensure that Property is Protected

PR Newswire — September 8, 2009

AUSTIN, Texas, Sept. 8 /PRNewswire/ — Hurricane Ike struck the Texas Gulf coast on Sept. 13, 2008, causing tremendous property damage over a wide swath of the Galveston-Beaumont region. As the one-year anniversary of the landfall of Hurricane Ike approaches, the Texas Windstorm Insurance Association is launching a consumer education campaign to help raise awareness of some basic precautions coastal residents can undertake that may help mitigate losses from future hurricanes.

Ten Tips for Hurricane Preparedness

  1. Protect your home by keeping up with routine home maintenance. For

     instance, keeping your roof in good condition and your foundation sound can

     go a long way to preventing wind and water damage.

  2. You may be able to lessen hurricane damage to your home by making some

     simple structural upgrades.

  3. Be sure you have BOTH flood and windstorm insurance coverage. Flood

     insurance does not cover wind damage and windstorm insurance does not cover

     flood/storm surge damage.

  4. At least once a year, take an inventory of your property. Consider

     videotaping a “tour” of your belongings. Keep all property records in a

     location away from your home.

  5. Insure your property for what it will cost to REPLACE your belongings

     rather than basing coverage on current value.

  6. Schedule an insurance “check-up” with your agent at least once a year well

     ahead of hurricane season.

  7. If changes to your insurance coverage are needed, plan ahead. New policies

     and/or changes to current policies cannot be accepted immediately prior to

     a hurricane.

  8. Be sure you know how to initiate an insurance claim. Keep your agent’s

     contact information with you at all times.

  9. Read your insurance policies and know what is covered and what is not

     covered. If you are not sure, discuss with your agent.

 10. Take the time NOW to ensure that you and your family will be prepared when

     the next storm strikes.

For more information about these tips and others, coastal residents are urged to contact their insurance agents.

About the Texas Windstorm Insurance Association

The Texas Windstorm Insurance Association (TWIA) is the state’s insurer of last resort for wind and hail coverage in the 14 coastal counties and parts of Harris County (east of Highway 146). TWIA provides wind and hail coverage when insurance companies exclude it from their homeowners and other property policies sold to coastal residents. TWIA employees are committed to promote hurricane safety and education, together with the development and enforcement of coastal building codes, in an effort to save lives and property.

    Contact: Meg Meo, 512-494-2867,

    mmeo@echristianpr.com

SOURCE Texas Windstorm Insurance Association