The Property Casualty Insurers Association of America convened recently to discuss the problem of public relations for their industry. Everyone agrees: it doesn’t look good.

David Sampson is president of the group. He says, “The aftermath of Hurricane Katrina is still having a significant impact on how both the public — and public policymakers — view property/casualty insurers. I know that we cannot wave a magic wand and convince the vast majority of the public to love us. But I do believe that by focusing on the fundamentals of our industry, and through more effective communications with consumers and public policymakers, we can restore their trust in our industry and their respect for our contributions to personal safety and economic security for their families, their communities and our nation.

“Enhancing our image and reputation will not be easy, nor will it occur overnight. But it is possible, and we must make this a priority for PCI and the industry.”

I’m not so concerned about the reputation as the substance behind the reputation. Property insurance is required for homeowners and I don’t know too many who are opting out of property ownership due to the industry’s reputation. The insurance industry wants to change their reputation to make sure that the next wave of insurance reforms don’t go against them. I’m just hoping that their interest in changing their rep has some positive effects on the individual consumers who invest in property insurance.

Like life insurance, auto insurance rates are affected by many different factors and there are things you can do to lower them. Here are a few tips to help you keep your bills low:

Only get coverage you need. By eliminating or reducing coverage, you can save money on your premiums. If you have an older car that may not be worth much to replace, you may want to consider dropping your comprehensive coverage which is aimed at protecting your vehicle.

Yesterday I gave you five ways to save on your car insurance and today, you get another five! Here they are:

* Pay premiums in advance. If you’ve got enough money to cover it, you can pay your yearly premium in one lump sum and pay less than if you broke it up and paid each month. Every company offers discounts if you pay up front.

* Just ask. Many companies offer discounts but don’t advertise them. Ask your insurance agent what discounts are available and see if you qualify.

* Pick your car carefully. Different cars incur different rates. It’s based on statistics-which model is most often stolen, which costs more in a collision, which needs repairs more often-and it’s not necessarily intuitive. Ask your insurance agent which cars are the best for low insurance costs the next time you’re in the market for a new car.

* Check your credit report. If there are mistakes on your credit report or old information that hasn’t been removed, it could raise your rates. Check your three credit reports each year to make sure that yours is up to date.

* Join the club. A number of trade and industry groups offer insurance at a discount. If you belong to any organizations, check and see what they have to offer.

I’m not an expert when it comes to auto insurance, but being in the insurance industry I know that there are a lot of nuiances when it comes to insurance terminology. Here are a few misconceptions that I think a lot of people get confused about.

1. No fault means it’s not my fault. This is simply not true. No fault auto insurance means that your insurance company will pay for damages no matter who’s fault it is.

2. If my friend is driving my car and gets into an accident his/her auto insurance pay for the damages. It’s not the driver that’s insured, it’s the car that’s insured, therefore it’s your auto insurance company that will pay for the claim if your friend was at fault.

3. The government sets auto insurance premiums. The government has nothing to do with your car insurance rate. Where you live, your credit score, marital status and your driving record are what actually affect your premium.

4. The new car I just purchased is automatically covered. Not necessarily: Most automobile policies require that the policyholder notify the insurance company or agent within a specified number of days, if indeed coverage is desired for the newly purchased vehicle.

5. Even without comprehensive coverage, I’m still covered for theft, windstorms, hail and deer accidents.
Many drivers believe that if they only purchase collision insurance, which covers accidents involving objects, that they will also be covered for incidents that involve vandalism, hail, animal accidents and fires. That simply is not true. You need to purchase both collision and comprehensive coverage.

Finally insurance companies are starting to wake up to the fact that preventative measures, though they cost money, can often save three and four times as much in medical costs later. It makes sense, right? Covering the cost of treating a disease costs far more than covering the cost of an annual checkup or monthly. In addition to covering wellness visits, insurance companies are starting to offer incentives for their customers who got out of their way to get healthier. It is increasingly more common for customers to be offered incentives for losing weight.

Obesity puts you at risk for a number of chronic health conditions that cost insurance companies a mint in prescription drug costs, emergency visits, check-ups and maintenance visits and trips to specialists. Some of these health problems include type II Diabetes and heart disease as well as a number of other conditions that complicate and cause co-occurring disorders.

Tom Haney is a wellness administrator at Independent Health, a health solutions company. He says, “As we begin to understand that there is a cause and effect relationship between risk and cost we’re beginning to narrow down what those risks are. And by risk I mean when people are exposed to the possibility of becoming ill over time it means we are looking at future costs. It means in this country something like 70 percent of chronic disease is avoidable.”

Now, in addition to the health benefits, there’s another incentive to lose weight!

Following is a release that just came out from AXA Equitable. This new rider is suppose to offset liquidity issues for wealthy individuals and corporations.

“Sometimes liquidity is an issue when wealthy individuals or businesses require substantial amounts of life insurance protection. That’s why AXA Equitable introduced today in approved jurisdictions a new on its Athena Universal Life (SM) Death Benefit product (Athena UL-DB(SM) CVPlus Rider). Whether it’s protecting a family’s financial future or a successful business, the CVPlus Rider reduces the need to tie up other assets or obtain letters of credit as collateral when financing life insurance. The announcement was made by Claude Methot, Senior Vice President and Chief Product Officer of AXA Equitable.

Advanced Planning for Individuals and Corporations “The financial protection life insurance offers can be critical to sustain a thriving business or protect a wealthy person’s estate but sometimes liquidity constraints delay action to protect,” said Mr. Methot. “Our new CVPlus Rider makes it easier to act, by offering a flexible alternative for clients who are reluctant to move assets for purposes of posting collateral in premium financing arrangements.” Using the CVPlus Rider, a client may get upwards of 95% of required collateral with the policy alone, minimizing out-of-pocket collateral and often obtaining more favorable financing terms.

The CVPlus Rider may also be beneficial in corporate-owned business planning. “By increasing the policy’s Cash Surrender Value,” said Mr. Methot, “the CVPlus Rider can offset the impact of the premium outlay on a corporation’s books.”

How the CVPlus Rider Works

AXA Equitable Athena UL-DB policies with the CVPlus Rider have higher early Cash Surrender Value, if the policy is fully surrendered, than policies without it. For a one-time charge of $250, there are two different ways that the CVPlus Rider increases the policy’s Cash Surrender Value:

1. For the first eight (8) policy years, surrender charges will be reduced by a specified percentage as indicated in below:

2. And refunding a portion of the cumulative premium charges deducted during the first three (3) policy years.

The CVPlus Rider must be elected at issue of an Athena Universal Life (SM) Death Benefit policy with a minimum face amount of $1,000,000 and $50,000 in annualized premium. Issue ages vary by underwriting class and tobacco user status and range between ages 0-75. Face amount increases are not permitted while the rider is in force.

* The reduction in surrender charge does not apply to any proportionate surrender charges resulting from a face amount decrease. Also, the enhanced cash value is not available if the policy is being exchanged or replaced with another life insurance policy or annuity contract on the insured, including (but not limited to) 1035 exchanges, except for policies issued in Florida.”

When you think about car accidents and what kinds of damage commonly occur during a normal day’s drive, rarely do you think deer. But interestingly-and sadly-enough, according to the folks at Erie Insurance Group there’s a high season not for deer hunting per se but for car accidents involving deer on the road.

The total cost of these incidents each year? More than $130 million, an average of about $2000 per accident.

Is it covered by your car insurance policy? Most likely. Deer crashes are deemed by most insurance providers as acts of God. It’s covered by comprehensive auto rather than collision since there is no fault involved. The problem is if you hit one deer, the costs of damages are going to be about $2000 and with a high deductible, this can nullify any savings you might enjoy on your premiums. So, if you live in a rural area where accidents with roaming animals is a high likelihood, you might consider shifting your high deductible into the lower range on your comprehensive car insurance in order to save money in the event that you become a statistic and hit a deer this year.

The U.S. Senate is finally getting serious about making sure that America’s children have health insurance coverage. They recently passed a second measure to double the funding for the State Children’s Health Insurance Program, a children’s health insurance program on a 64-30 vote after the House of Representatives passed it with a 265-142 majority. Next, on to the White House where it is expected that George W. will veto the bill as he did a few months ago on a bill that was almost exactly the same.

The State Children’s Health Insurance Program provides states with the money to make sure that its children are covered for their medical costs. Those who are for it say that providing low-income kids with health insurance will help them get the check-ups they need to prevent illnesses that will cost the state more in the long run. Those who are against it say that their parameters are too vague and will cover children whose parents can afford private coverage.

Says Senate Majority Leader Harry Reid, D-Nevada, says: “The president has manufactured phony excuse after phony excuse to mislead Americans into opposing. Regardless, we will continue to work in good faith with the president and Republican leaders … to provide 10 million American children the healthcare they need.”

According to Insurance.com’s 2007 Mid-Year Auto Insurance Pricing Report, auto insurance prices were declining. The site based its findings on data from the lowest average auto insurance rates viewed by almost 700,000 car insurance customers through June of 2007. Here are the results.

States with the biggest auto insurance decrease

States with the biggest auto insurance increase