autoinsurance – Crossing T's and Dotting i's

Whose Name is Under There? (Did you say underwear? ;0)

The Underwriter wants to know everything about you — let’s learn more about them.

The Who

Insurance underwriters are trained to identify, understand and prevent risks in either life, health, or property and casualty insurance. Property and casualty is a broad field that can include business, home or auto insurance. Their specialized risk assessment knowledge enables them to determine whether they will insure something or someone and for how much. Underwriters decide whether to agree to be financially responsible to the insured if something unexpected or catastrophic happens related to the policy.

So, the underwriter decides if you are worth a monetary risk to cover you and how much premium will be charged if approved.

The What

The U.S. Bureau of Labor Statistics describes what an underwriter does as follows:

Analyzing insurance applications
Identifying the risks of insuring applicants
Screening applicants based on a specific set of criteria
Evaluating recommendations from underwriting software
Contacting field representatives, healthcare providers, and others for more data
Deciding whether to offer insurance
Determining appropriate premiums and amounts of coverage
Reviewing and updating the rules for automation software

The difference between the specialties lies in the criteria used to make the decision. For life insurance, examples of the criteria are age and financial history. For health, the main criteria are medical history and age. For auto insurance, underwriters look at driving record, age and type of vehicle. In everything they do, insurance underwriters must strike a balance between risk and caution. Too much risk means the insurance company will pay out too many claims. Too much caution and the carrier will not make enough money from premiums.

The Where

Underwriters work for insurance companies and can usually be found at desk in the company headquarters or a regional office. They use software systems to analyze and rate insurance applications, make recommendations based on risk, and adjust premium rates according to the risk. Sometimes they might work overtime or on weekends, depending on the type of underwriting, and they may inspect the property or vehicle in person. The average salary has been on the rise over the years and depends upon qualifications, education, experience and location.

The How

Insurance underwriters use a software program to recommend coverage and premiums based on the specific data provided by the applicant, and will approve or reject the application after an evaluation of the software results. For simple and common types of policies, such as those for automobile or homeowners’ insurance, the automated recommendations are commonly followed.

For more complicated types of insurance, such as workers’ compensation or business income, underwriters rely on analytical insight and experience. For example, in some cases, a reported bankruptcy or cancer treatment might impact a policy so they will review other sources such as medical records and credit scores.

The How To (become an underwriter)

{from kaplanfinancial.com}

“In general, to become an insurance underwriter, you should have excellent decision-making and mathematical skills, strong analytical and computer skills, and good interpersonal skills. You should also be detail-oriented. You’ll need a bachelor’s degree at a minimum. You do not have to be a finance or business major; however, you should plan to complete mathematics, economics, finance, and business courses. Unlike insurance agents and financial representatives who sell insurance as an investment, you do not have to have a license to become an underwriter. However, in some of the larger insurers, having an insurance license can help you stand out in a group of prospective trainees or associates.

Underwriters who are just starting out are usually required to be an associate for an established underwriter, learning about basic applications and common risk factors on the job. As they become more experienced, they begin to work more independently, and their work becomes more complex. Also, big insurance firms often offer comprehensive training for new hires. Eventually, they no longer need supervision and will work independently as underwriters. Most underwriters participate in underwriting professional development to sharpen their skills and knowledge.”

The Why

The role of an insurance underwriter includes responsibilities such as:

Evaluating information about the potential client (i.e., age, marital status, medical history, driving record, etc.)
Using underwriting software to analyze the risk profile of the potential client
Deciding whether or not insurance coverage should be offered to an individual
Calculating costs to provide coverage and establish the pricing for the premium
Developing solutions to reduce the risk of paying future insurance claims
Analyzing actuarial tables, which is the data provided by actuaries

Although some of the work is automated and is carried out by insurance software, as mentioned above, an underwriter will still be involved with a potential client if a change in risks or change in the conditions of the insurance policy is likely. The underwriter will determine whether or not the insurance company would like to continue with providing insurance coverage or if it will establish new insurance terms with the client.

The End, but actually the beginning

The term underwriter first emerged in the early days of marine insurance. Shipowners sought insurance for a ship and its cargo to protect themselves if the boat and its contents were lost. Shipowners would prepare a document that described their ship, its contents, crew, and destination and go to the local hangout or pub, usually.

An agreed-upon rate and terms were set out in the paper. Business people who wished to assume some obligation or risk would sign their name at the bottom and indicate how much exposure ($) they were willing to accept. These businessmen became known as underwriters. They would get a return on their investment or help cover the loss in the event of an accident.

{From investopedia.com/terms/u/underwriter.asp}

Don’t Go Breaking the Law: Tennessee Drivers Must Have Auto Insurance

To protect yourself and other drivers, you must carry liability and uninsured motorist insurance in Tennessee.

It’s expensive and there are so many more things you’d rather spend money on than auto insurance, but if you get pulled over or in an accident, the officer is going to ask for three things: License, registration and proof of insurance.

If you are caught driving without insurance in Tennessee, you may be charged with a Class C misdemeanor, which can result in fines or a suspended driver’s license requiring an SR-22 form to be reinstated. Ignoring the law to save money could end up costing you a whole lot more.

Since 2017, uninsured drivers in Tennessee will pay fines and risk losing their vehicle registration if they are unable to demonstrate proof of financial responsibility. A web-based program will verify insurance for all Tennessee drivers. These changes come as part of the James Lee Atwood Jr. Law.
tngov.com

If you are involved in an accident while uninsured, your charge will be bumped up to a Class A misdemeanor. Penalties for driving without insurance can include:

A fine of $300
The revocation of your driver’s license until you:
- Provide proof of insurance, and
- Retake and pass your driver’s license examination
A restoration fee of $65 to get your license back
A $50 fee to be paid to the commissioner of safety
The requirement to provide proof of insurance with an SR-22 certificate for three years

Despite these consequences, about 20% of all motorists in this state are driving uninsured vehicles. This is much higher than the national rate of 13%.

In the state of Tennessee, your car insurance policy must include the following:

Liability insurance: This covers injuries and damage you may cause to others if you are responsible for a collision. You must have at least the following amounts of coverage:
- Bodily injury liability coverage: $25,000 per person / $50,000 per accident
- Property damage liability coverage: $15,000
Uninsured motorist insurance: This covers your injuries and property damage if you are in an accident caused by an uninsured, underinsured or hit-and-run driver. You must have at least the following amounts of coverage:
- Bodily injury coverage: $25,000 per person / $50,000 per accident
- Property damage coverage: $15,000

In addition to the mandatory coverage, most car insurance providers offer a variety of coverage options that you may want to consider. These include:

Collision coverage: This covers collision-related damage to your own vehicle, regardless of fault. Pays to repair or replace your car if it is damaged in a collision with another vehicle or a stationary object. It can also cover you if you overturn your vehicle while making a sharp turn. It is often required by lenders until you have paid off your vehicle.
Comprehensive coverage: This covers non-collision-related damage to your own vehicle if it is lost or damaged due to an event such as a falling object, flood, structure fire, hailstorm, or property crime including car theft. This is also typically required by lenders until you have paid off your vehicle.
Medical payments coverage aka Personal injury protection (PIP): This provides coverage for your own medical bills if you (and your passengers) are injured in an accident, regardless of fault.
Towing and roadside assistance: This covers the cost of assistance if your vehicle becomes disabled while you are out on the road, such as if your engine overheats or you get a flat tire.
Rental car reimbursement: This can cover the cost to rent a vehicle while your own vehicle is being repaired following a covered event.

Average Cost of Car Insurance Per Year

Vehicle owners in Tennessee pay an average of $1,186 per year for their auto insurance coverage. This is lower than the national average of $1,311. Your actual quoted price for coverage will be calculated based on factors such as the make, model, trim, and year of your car, and even personal details like your driving history, age, occupation, and credit score. Comparing quotes from a variety of insurers lets you be sure that you are getting the coverage you want at a competitive price.

Car insurance policies in Tennessee generally follow the car rather than the individual. For example, if you get in a car accident while driving a friend’s vehicle, the primary source of the compensation would be your friend’s auto insurance coverage, not your own.

Tennessee is not a no-fault state.

This means that if you are in a collision, the person responsible for the accident is responsible for covering any resultant property damage and necessary medical treatment. If the at-fault driver does not have enough insurance to cover the costs, they will be expected to make up the difference out of pocket.

In no-fault states, your own insurance policy provides the first line of coverage for necessary medical treatment, regardless of fault.

FACTS

TN averages 190,636 vehicle accidents every year.
Of these, approximately 143,300 involve property damage, and 46,400 result in injuries.
The average cost of a collision in Tennessee is $13,561.
Tennessee drivers collect about $2.49 billion in insurance claims per year.
from https://www.tnindependentagents.com/car-insurance-tennessee/

Tennessee SR-22 Insurance Documents

When seeking to reinstate your driver’s license after being convicted of a DUI, driving without insurance, reckless driving, or another driving violation that results in a suspension, you must file a SR-22 insurance document. This form gives proof of future responsibility, and you might need to have it for five years from the date of the suspension.

According to the Tennessee Department of Safety and Homeland Security, if you file the SR-22 for a total of three years within the five-year period, the SR-22 might be canceled. If five years pass from the date of the suspension before you reinstate your privileges, then you don’ need to file the SR-22. If you cancel the SR-22 before the required time passes and you fail to file a new form, your driving privileges remain suspended.

Your insurance provider may be able to electronically file the SR-22 insurance documents. That way, you can get back on the road quicker, though with a little less cash in the bank.

Speed Dating: 5 questions to ask a potential agent

How do you choose? By looks, by experience, by personality, by clever marketing swag? Consider these questions first.

Now that we’ve all celebrated (or hated) Valentine’s Day, let’s turn our focus to an oft overlooked relationship in our lives: the one with your insurance agent. Quick! What’s his/her name? If you know without looking, that’s a good start, but I should stop here to add that if you don’t know the carrier of your insurance, then you aren’t ready to speed date. You need to take it slow and start at the beginning. The following questions should be asked as soon as introductions are made because the answers could quickly reveal compatibility or lack thereof.

1. What’s your specialty?

At Herron-Connell, we write all lines of insurance: home, auto, life, health, business/commercial, disability, specialty, umbrella and more. You can see how having so many options could spread one person thin on their expertise level, so ask if your needs line up best with their qualifications. You may partner up with more than one person in an agency–it’s not cheating!

2. Are you an Independent Agent or a Direct Broker?

An independent agent is not monogamous. They aren’t committed to one particular insurance company so has a wider range of options and carriers to choose from that would ideally best benefit the customer. They can play the field, to keep the analogy going. A direct broker or a captive agent only represents a specific company, like State Farm, and they cannot shop around for a better rate or other options should you lose coverage or get dropped for multiple claims, for example. Herron-Connell is an independent agency and can mix & match if a combo package isn’t best for home and auto, or different carriers have lower rates in multiple areas.

3. Do I get any discounts?

Everyone wants to save a little money, but this question will also reveal the agent’s knowledge and willingness to help. If you feel like they don’t want to take the extra steps to save you money, or heaven forbid, give you any sort of evil eye, run. This dismissive treatment is a giant red flag flapping in the wind of a customer service desert. Discounts could include a good driver discount, a multi-policy discount for bundling home & auto, a lifestyle change; it is a matter of asking and clicking boxes on the application, not very time-consuming or labor-intensive.

4. What’s your home number?

Just kidding, that’s a little much, but ask what you should do if/when you have a question or need help after office hours. Insurance incidents don’t only occur during the week between 9-5. Whether you have a car accident, need help getting a claim paid or something less urgent but important, your agent should be available and willing. When they are not accessible for any reason, they should provide after-hours contact information so that when you need assistance, you have options.

5. Got any references?

Considering all of the personal information your insurance agent asks you, it is completely reasonable, nay, responsible of you to ask them for client references. They may have nailed the interview or first impression, but what happens the day after. Will they take your call? Will they even remember your name? What others say about them counts much more than what they say about themselves. If the words trustworthy, helpful, knowledgeable never show up, them you should probably ring the bell and move on.

If you aren’t comfortable asking these questions, try emailing them to the prospect. This relationship is important and should not be one-sided. Hopefully, if all goes well, you will only hear from them before time comes for renewal or if you run into them at a ballgame or some place. But, taking the time to ask these questions before you make a long-term commitment can help avoid unnecessary heartache and frustration later.

22 Questions for Home and Auto Insurance Review

Happy 2021! Look over these 22 questions to review your home and auto insurance for the new year.

Last year brought enough unwelcomed surprises, don’t let home and auto changes negatively affect your insurance coverage. Review the following questions to make sure your policy covers what you need for 2021 and let’s all have a happy, healthy new year!

Have you completed any renovations or additions to your home/property? (Pool, dock, gazebo, deck, fencing, roof or window replacement, other improvements)

Do you own any other properties? (Secondary residence, rental property, vacant land, etc.)

Do you have any residence employees? (Nanny, housekeeper)

Do you have any income producing hobbies or operate a business out of your home? What type ?

Are you providing any other business services in your home on a regular basis?

Are you renting out any part of your home?

Do you have personal property that should be scheduled? (Jewelry, coins, stamps, artwork, collectibles, etc. are limited in coverage on the standard policy – appraisal required.)

Is there a trampoline, diving board or unfenced pool on the premises?

Photo by Karolina Grabowska on Pexels.com

Are there any dogs, horses, exotic pets or farm animals on premises?
If yes, what breed(s)?
How many?

Photo by Ave Calvar Martinez on Pexels.com

Do you own or operate any drones or other unmanned aircraft?

Photo by The Lazy Artist Gallery on Pexels.com

Do you participate in AIRBNB or similar home sharing services?

AUTOMOBILE SECTION

Is every person in your household who holds a driver’s license listed as a driver on your policy?

Is anyone who regularly drives one of your vehicles listed as a driver on the policy?
(A housekeeper or nanny who regularly drives your vehicle)

Are all vehicles you own listed on your policy?

Do you drive any vehicles furnished for your regular use that you do not own?
(Company car)

Photo by Andrea Piacquadio on Pexels.com

Are all the vehicles listed on your policy titled to you and/or your spouse?

Are any of the vehicles on your policy customized or altered?

Are any of the vehicles garaged at a different address?
(i.e. a child at school with a vehicle)

Are any vehicles used in business, for sales or deliveries?

Do you own any recreational vehicles or watercraft?

Do you own any motorcycles, mopeds, minibikes or scooters?

Do you use your ride sharing programs?

GENERAL INFORMATION

Are you interested in learning more about the following protection?

Umbrella Liability
(An additional layer of liability over your home & auto policies)

Flood Insurance
Business Insurance
Life, Health, or Disability Insurance

This list is just the beginning. Review your policy with your agent each year for a thorough check. We’re happy to answer any questions you might have and provide a complimentary review of your home, auto, life, health or commercial insurance policies at Herron-Connell. Give us a call at 865-483-8483.

Introducing…

Herron-Connell Insurance Group is firmly planted and proudly rooted in East Tennessee since 1945.

Picture it–not Sicily, but Oak Ridge, 1945.

The Manhattan Project is no longer top-secret and WWII comes to a victorious end. Honorably discharged from military service, Mr. Herron opens an independent agency with Mr. Connell, aptly named Herron-Connell Insurance.

Same company, fifty years later: Father & son, Steve & Addison Koella, buy the agency and continue the longstanding family tradition of providing personal, commercial, health and life insurance coverage from more than 40 different carriers to the people of Oak Ridge, Anderson, Knox and other counties. Red Williams’ agency joins the family in 2005; O’Kain & Clark in 2015; then Jim Condra & Employee Benefit Solutions of Tennessee come along in 2017.

Herron-Connell Insurance Group is firmly planted and proudly rooted in East Tennessee since 1945.

665 Suite A Emory Valley Road
Oak Ridge, Tennessee 37830
865-483-8483

We offer the same digital services as national companies through our website, social media and a new, free app. If technology isn’t your thing or you prefer to sit and discuss options, we are just down the road. We will be socially distancing for a bit longer, so the office is currently closed to the public, but we are here. As Mike said the other day, this is not the new normal. We look forward to returning to the old normal of hugs and handshakes. Meanwhile…

“Prepare the umbrella before it rains.”
a translation of a Malayan proverb: Sediakan payung sebelum hujan.

In Tennessee, we say, “Grab an umbrella just in case. Better safe than sorry.”

That’s what insurance is. You hope for the best and prepare for the worst. We are here to help you every step of the way, through all sorts of weather. We also say, “If you don’t like the weather, wait ten minutes and it’ll change.”

We saved the best for last!

Meet our agents and the heart of Herron-Connell Insurance Group:

From top left: Billie Layfield, Mike Clark, Frannie Hamrick Middle row: Katie Rymer, Steve Koella, Cyndi Jeffers Bottom row: Susan Anderson, Dan Brown and Hugh Neil.