Archive for December, 2009
What is an AOR?
An AOR (Agent of Record) is a letter from the insured appointing a new agent or agency as their agent or agency. This letter ultimately fires the incumbent and appoints the agent chosen by the insured as the exclusive agent in relation to the insurance company. This then gives the new agent all the rights and responsibilities of the original agent. The AOR is in essence the same as a BOR (Broker of Record).
Typically an insured will sign a AOR when the incumbent fails to meet the expectations of the insured or has somehow diminished the role of being a “trusted advisor”. At this point the insured has determined to find someone else to provide insurance and this can certainly be done during any point in a policy.
Although requirements may differ from one insurance company to another they all generally require the letter in writing and signed by the insured. There is then a period of time the incumbent has to rescind the letter although the insured would have to approve. However if the insured does not approve the incumbent is helpless in retaining the insurance account.
Is there any special auto insurance for Hispanics?
Although there isn’t really any special auto insurance for hispanics there are now a greater amount of Spanish speaking insurance agents throughout the country. With the increase of the Latino and Hispanic population there has been a greater understanding of the Hispanic needs in regards to purchasing auto insurance.
However, like anything else it is still important to shop around for auto insurance and not just limit your auto insurance quotes to Hispanic auto insurance advertisers. It is still best to look at a variety of auto insurance companies as many will have Spanish speaking customer service representatives.
Thanks for the question and be sure to look at all the Hispanic and Latino insurance agencies you can befor deciding what auto insurance coverage is best whether your Latino or Hispanic.
What is an additional insured?
This is a question often asked by business owners when another business asks to be listed as an “additional insured” on their insurance policy. What this means is that the other business is going to use the insurance policy of the business owner as their primary insurance in case a loss occurs. This scenario plays out usually when the skills or services of another business is needed to complete or fulfill a business obligation of the owner and he therefore complies with the request to list the other business as an “additional insured” in order to get the job completed.
In essence the owner’s commercial insurance becomes the insurance for the trade, sub-contractor or other business that is required by the owner to do a job for him/her. Although insurance companies don’t prefer doing this they normally will do it for extra premium since they are assuming a greater amount of risk. Therefore this is typically not recommended unless necessary due to no other options being available.
The main thing is to be sure that the commercial insurance carrier is notified and the policy is endorsed to reflect the “additional insured” prior to any work with the other party commencing. This will protect the named insured from a denied claim should something happen prior to the commercial insurance policy being endorsed.
Safe Driver’s Insurance
Insurance companies absolutely love safe drivers and therefore offer their deepest discounts to those whose driving record is squeaky clean. This means no accidents, no speeding tickets or generally no comprehensive claims. Combine all of these factors together and insurance companies know they can have a profitable account and customer.
When drivers are responsible and some cases fortunate, insurance companies reward them with low premiums and competive offers. Safe Driver’s Insurance is where all those on the road want to be especially in a tough economy. By having an insurance carrier’s best rates drivers will notice a significant savings in comparison to those whose driving records are not so pristine.
If your driving record is not very clean it can be worked on to earn a safe driver’s discount by staying claim free for a minimum of three years and preferrably five years. This means no traffic violations or accidents in addition to paying your premium on time. The reason payments come into play in many states is that credit scores can either positively or negatively impact your rates.
A Safe Driver’s Discount can be had but it does take some work and patience if your not already there. However, the savings is well worth the effort! So drive safe and be alert and you too can earn the Safe Driver’s Insurance.
Car Insurance Basics
The basics of car insurance for most begins with liability insurance. This insurance for your autos will cover damages that you may be found liable for in case of accident or negligence that you are responsible for. This coverage for liability is typically mandated by all states to cover the cost of indemnifying the other party. Of course the limits are different state by state as to how much liability insurance an individual must have but generally it is somewhere around $50,000. This can be determined by talking to an insurance agent in your state.
Many individuals will also carry coverage for the loss or damage to their auto as well. This normally is written as “Comp” (comprehensive) and “Collision”. This amount of coverage is typically written as Actual Cash Value of the auto minus the deductible. “Collision” coverage will insure your vehicle if your at fault and your auto is damaged whereas “Comp” will cover your vehicle for any other damage to your vehicle other than a collision. Keep in mind that if your vehicle is damaged and it’s found to be not your fault then the other party involved, if there is one, is responsible for taking care of your costs.
Another coverage that many will purchase along with their auto insurance is “uninsured” or “underinsured” auto coverage. This protects the policy holder from loss resulting from another’s fault and the owner at fault doesn’t either have sufficient limits or no insurance at all. The uninsured or underinsured coverage steps in and will cover the policy holder up to the specified limits. Generally the limit here reflects the liability coverage limits.
Some other coverage that some purchase are “Personal Injury Protection” and “Towing”. Keep in mind that there may be other coverages available that are only offered in your specific state and then other coverage that may not be covered or available. Of course by consulting with your local insurance agent this can be easily determined. Keep in mind that many auto insurance companies like Progressive, Nationwide, Allstate to just name a few normally have different bells and whistles they include. So be sure to shop around and find what best fits your basic auto insurance needs.
What are “Loss Runs”?
Every insurance carrier guards their bottom line by attempting to insure only the best risks by understanding the exposure in detail. When a prospect applies for insurance the obvious reasoning is that there is some sort of risk of loss that the prospect doesn’t want to be on the hook for. Therefore, the insurance carrier assumes risk for their insureds in turn for premium. By doing this they share the cost of risk over many.
For this reason “Loss Runs” are tracked. In essence “Loss Runs” is an insured’s insurance history at a glance. This report talks about past losses as well as open case losses. This report will state the time and the carrier along with other pertinent information. By having loss runs available an insurance company can then analyze the chance of risk with the prospective client.
Typically prospective insurance carriers will require anywhere from three to five years of Loss Runs before deciding to issue a proposal for business. Because all insurance carriers require loss runs all insurance carriers will provide loss runs as an industry standard of practice. Obviously the least amount of losses the better the insurance rates and the greater the amount of losses the higher the rates.
What this means for individuals and/or businesses alike is that it is always best to avoid or reduce risk as much as possible as a means of keeping insurance costs down. This is a direct strategy that has a direct impact on your bottom line.
