Phyllis Van Wyhe
CPCU, CIC, CSP
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The Van Wyhe Group
E-NewsLetter | PO Box 4130
Waukesha, WI 53187
Phone (800)326-4741 Fax (800)476-2945 July 1, 2009
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| | Wisconsin Passes Mandatory Auto InsuranceWisconsin and New Hampshire are the only two states where it is legal to drive without insurance. In Wisconsin, the state only requires that you show proof of financial responsibility at the time of an accident; if you cannot, your driving privileges are suspended. That has changed with the passage of the state budget bill which includes a new mandatory insurance provision. This will quell the demands of those Wisconsin residents who have been in accidents with uninsured drivers; unfortunately, it may do little to actually reduce the number of uninsured drivers on the road. About 14% of Wisconsin drivers are uninsured; at least six states have rates over 25% and all of them have mandatory auto insurance. Industry statistics show that these laws are only effective when backed by strict enforcement and substantial penalties for non-compliance. States, where the vehicle can be impounded or where fines for repeated violations are as high as $5000, have reduced uninsured rates to around 5%. What is the proposed penalty for being caught without insurance in Wisconsin? A $10 fine. I’m impressed!
Chinese Drywall UpdateThe word on the street is that some insurance carriers are bracing for potential Chinese drywall claims in the Midwest, particularly in Minnesota and Wisconsin. So much building material was sent south for rebuilding after the hurricanes of 2004 and 2005, that imported drywall was used to meet local building demands. As I mentioned last month, some drywall from China allegedly emits a noxious odor when wet and is said to cause corrosion of plumbing. While liability claims are a concern for any business in the building industry, agents should be aware that the issue has a great potential for exaggeration and hype by both the media and the legal community. Keep on the lookout and if the topic comes up in your area, get more information before you express an opinion. This is another of those no-win situations for the industry.
Privacy Battles TechnologyConsumer advocates are up in arms again about insurance industry practices. This time it concerns how some insurance carriers are using the information collected in the black box under the driver’s seat of your car. A claims adjuster, armed with a laptop and some sophisticated software, can download data that is recorded moments before and after a crash. That information can then be used in settling the claim and in determining premium at renewal. But can a company legally access that information from an insured’s vehicle? From the claimant’s vehicle? At least 12 states have passed state statutes restricting such use and several others are considering such laws. With most of these new laws, this data is defined as personal property of the vehicle owner; as such, it cannot be accessed without written permission of the owner. Most of these laws also stipulate that ownership of the data does not pass to a new owner; when the carrier takes title to the car that is a total loss, it cannot access information previously collected by the black box. As technology makes more information available to big business, business is challenged on the proper use of the information. Just another example of the ongoing battle between man and machine that is being waged in modern society. Let’s hope we win.
Quote of the Month“There’s always going to be pain in life, baby. But suffering, that one is optional.”
Tallulah Bankhead
Who We Are:InsuranceCe is brought to you by The Van Wyhe Group, an education firm coaching agents in ways to add value to the insurance transaction. Agents who master adding value attract business rather than chase it.
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