AIG Policy Protects Against Domestic Workers' Allegations
AIG Private Client Group, a division of American International Cos., offers employment practices liability coverage that protects individuals against allegations of sexual harassment, wrongful termination and discrimination made by nannies, housekeepers, gardeners, personal assistants and other domestic help employed by the insured.
According to the Bureau of Labor Statistics, there are nearly 1 million people employed in private residences across the United States. New laws have been enacted protecting the rights of the employee, and employment-related complaints and jury awards have dramatically increased.
While employment practices liability insurance has been an important coverage for businesses for many years, AIG Private Client Group is now pioneering the application of this coverage to address the employment practices exposures facing high-net-worth individuals.
The employment practices liability coverage is offered automatically to AIG Private Client Group excess liability policyholders. The policy provides coverage of up to $250,000 for settlements and judgments awarded as a result of employment-related allegations, as well as the full cost of defense. Coverage is provided for up to five employees, including part-time employees, working more than 15 hours a week. In addition to employment practices liability coverage, AIG Private Client Group excess liability policyholders also receive the Employment CrisisFund, which provides up to $25,000 to cover the fees of an approved public-relations firm to help policyholders minimize damage to their reputation.
AIG Private Client Group offers families with private staff further protection through workers' compensation insurance and access to pre-employment background checks.
The insurance product offerings include automobile, homeowners, private collections, excess liability, kidnap and ransom, aviation and watercraft coverage.
Mechanical Breakdown Policy Available for New Automobiles
To help offset car-repair costs, auto owners of new and leased cars are increasingly turning to mechanical breakdown insurance that typically provides broader coverage than car manufacturer or dealer warranties.
John Zinno, president of Geico's Safe Driver Motor Club and assistant vice president of Geico, says the insurer's mechanical breakdown insurance makes sure that covered repairs don't cost the car owner more than $250 of out-of-pocket expenses.
Geico's product combines components of collision and comprehensive coverage and covers items that not all manufacturer or after-market warranties guarantee, such as exhaust systems, clutch and electrical accessories.
Under the policy's provisions, Geico pays 100% for covered mechanical repairs, minus the deductible. Auto owners can take their car to any licensed repair facility, although repairs still under manufacturer's warranties must be repaired by a dealer.
The coverage must be added within the first 11 months of purchase of a new car or within the first 11,000 miles. It then becomes part of the regular Geico policy and can be renewed up to 100,000 miles or seven years.
Another advantage of the plan is that it can be transferred at no charge, provided the new owner is or becomes a Geico policyholder.
Washington Mutual Now Offers Pet Insurance, Home Warranty
Washington Mutual Home Loans and Insurance Services Group has added pet insurance and home warranty plans to its online product offerings via its Web site at www.WaMuIns.com.
"More and more customers were asking for pet insurance and our home loan customers wanted the convenience of a home warranty plan that could be added to their mortgage," said Carl Formato, president of Washington Mutual Insurance Services Inc. for Washington Mutual's Home Loans & Insurance Services Group.
Washington Mutual Insurance Services partnered with Veterinary Pet Insurance to offer this product to customers. Depending on the type of plan selected, coverage can include an annual exam, vaccinations, heartworm protection, prescription flea control, choice of spaying/neutering or routine teeth cleaning. Veterinary Pet Insurance has plans for dogs, cats, birds, rabbits, ferrets, reptiles and other exotic pets.
And since home repairs can be expensive and finding qualified technicians can be a challenge, Washington Mutual has created a home warranty plan to help customers minimize the hassle of repairs. The plan is issued and administered by American Home Shield, which has more than 30 years of service experience. The plan includes coverage for customers' essential systems and appliances, including electrical, plumbing and heating systems.
Technology Helps in Complying With Anti-Telemarketing Laws
Insurers, agents and brokers that sell through telemarketers need to be aware that several states have instituted do-not-call laws, which establish lists of consumers who do not wish to receive solicitations over the phone.
Not complying with these laws can be costly: State fines range from $2,000 to $25,000 per infraction; federal fines can reach up to $11,000 per violation.
Gryphon Networks offers a network-delivered service that is designed to prevent violations of these do-not-call laws. The technology automates compliance for businesses that make outbound sales or telemarketing calls to consumers, at both the state and federal levels.
"What makes this into a potential 'killer app' is that it can be easily integrated into any of the carriers' networks, without interrupting the transport and be a clear revenue-generator due to the high demand and high regulatory pressure," said Rick Boudrieau, Gryphon Networks' chief technology officer.
The do-not-call application instantly blocks calls made by a telemarketer to either a state-run list registrant or to a phone number on a company's proprietary no-call list. When a number on either of these lists is called, the telemarketer hears, "You have reached a do-not-call restricted number; please dial a new number now." The phone never rings in the consumer's home.
The technology also enables numbers to be added quickly to the company's no-call list. If a telemarketer receives a request from a consumer to be placed on the list, the telemarketer simply hits a two-digit key code. Within seconds after the two-digit function is activated, the application will block telemarketers from that company from calling the number again.
To date, 26 states have passed do-not-call laws. With the recent addition of California, Texas and New York, virtually 70% of the consumer market is protected by the do-not-call regulatory umbrella. At the state level, consumers can register their phone numbers on do-not-call lists to avoid receiving telephone solicitations. Federal regulations enforced by the Federal Trade Commission, National Association of Securities Dealers, Municipal Securities Rulemaking Board and New York Stock Exchange require companies to maintain lists of consumers who specifically request to no longer be contacted.
Farmers Buys Computers for Its Agents
Farmers Insurance Group is outfitting its agency force with new Dell personal computers. About 14,000 agents and district managers will receive these computers for business use.
Farmers agents typically are responsible for their own equipment. Agents and district managers currently use the IBM AS400 system, and they will continue to use this as the staple of their operations. Farmers decided to provide agents with a personal computer as it will complement the existing system, expand the agents' capabilities in better serving their clients and help agents transform to the company's vision of e-enablement, or what Farmers calls the "e-agent."
"While we are committed to a high-tech, connected future, this does not mean Farmers is becoming an online insurance provider," said Martin D. Feinstein, chairman of the board, president and chief executive officer of Farmers. "Our existing technology, coupled with these computers, will enable agents to better and more professionally operate their agencies so they can devote themselves even more to building relationships of trust with their customers and provide unsurpassed personal service in insurance and financial services."
Study: Most Often, It's Price That Sells Policies Online
Consumers buy insurance online based almost exclusively on price, according to a new study by Compete Inc., a consulting firm. The study also found that Internet distributors are outpacing traditional insurance carriers in attracting customers to their Web sites.
By examining the "clickstream" data of more than 10 million active Internet users, Compete analyzed shifting consumer preferences and trends within the property/casualty insurance market from September 2001 to November 2001. Compete divided the market between carriers that underwrite insurance policies-such as Allstate, Geico, Progressive and State Farm-and distributors, such as InsWeb, Quotesmith, Insurance.com and Answer Financial.
"Insurance carriers need to discourage price-focused consumer behavior and begin developing deeper, service-based relationships that lessen the effects of price sensitivity over time," said Derick Sutton, vice president at Compete.
Compete named Progressive as an insurance carrier that has been able to successfully bridge brand and pricing transparency by offering unbiased, competitive quotes on its home page, while it appeals to brand-oriented consumers with high-quality account-servicing capabilities.
Increased traffic at the distribution sites has begun to draw direct customers away from the top insurance carriers' Web sites, the study found. For instance, InsWeb, the largest distributor, attracted nearly 400,000 unique visitors a month, nearly 60% more than Allstate and State Farm, which each averaged fewer than 250,000 visitors a month.
Property/Casualty Marketplace is compiled by Senior Associate Editor Lynna Goch.
