Insurance News - Thursday, February 28, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, February 28, 2013:

• Arch Insurance non-renews 2,500 taxis and limos as the business remains unprofitable despite 2010 auto insurance reforms.
• Ontario Human Rights Tribunal rules that Ontario insurers can charge elderly drivers higher premiums.  Ruling is consistent with 1992 Supreme Court of Canada decision Bates v. Zurich.
• Today was the launch of Fraud Prevention Month.

Insurance News - Wednesday, February 27, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Wednesday, February 27, 2013:

• Insurers using mobile, social media to tackle customer retention problems.
• Maine Bill requiring ‘full disclosure’ of credit use in insurance-scoring models fails.  So much for transparency.
• NDP and Tories claim Ontario highways not cleared of snow fast enough leading to higher collisions and fatalities.
• Ontario Court of Appeal decides that insurance brokers may take book of business elsewhere, absent an agreement.
• Finally, how to protect your car from hail damage:

Insurance Topics - Tuesday, February 26, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, February 26, 2013:

• Georgia state House approves use of electronic auto insurance card, proposal now heads to state Senate.
• Opinion piece by Howard Pawley in Windsor Star: Public auto insurance: Why not? 
• Fraud Prevention Month begins on Friday. FSCO and others will be attending media launch at Toronto Police Headquarters on Feb 28th at 10 am.
• Aviva planning to return to Usage-Based Insurance but instead of a 'black box' they intend on using smartphone technology.
• British Columbia Automobile Association has introduced a free online tool to calculate the cost of vehicle ownership.
• Strange but true, it can cost you $448 to drive just one mile.
•  This is a collision you don't see every day:

Insurance News - Monday, February 25, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, February 25, 2013:

• Anonymous tip line in Sudbury to ‘rat out’ unfit elderly motorists unfairly targets seniors according to CARP.
• NDP continues to press for auto premium reductions in the Ontario budget.  My guess is that any insurer that was planning to reduce rates will now wait and see. 
• 2010 Ontario auto insurance reforms has a significant impact on Accident Benefit claim costs in 2011.
• Good weekend for stunt driving charges.  Suspended driver clocked at nearly 150 kilometres an hour on Don Valley Parkway and then a second man was clocked at 188 kilometres an hour on the Gardiner Expressway.
• New Forum Research poll suggests that Hudak Tories could form a minority government, Horwath NDP have lost some support and Wynne Liberals have stopped falling in the polls. An election right now would be impossible to call.

Insurance News - Thursday, February 21, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, February 21, 2013:

• Another blog post on usage-based insurance: Auto insurers bank on Big Data to drive new business.
• How insurers thrive in an era of ‘stable instability.’
• Hey it's not just the Ontario NDP. Florida Senate Leader to Insurers: Where Are Savings from PIP Reforms?
• Florida apologizes to Canadians for driver’s licence mix-up, seems we do speak English. But the law is still in force so what happens to Canadian drivers that get into accidents?
• NDP reiterate their pre-throne speech demands for lowering auto insurance rates, closing tax loopholes and a 5-day home care guarantee.
• Economical Insurance reports 2012 net income of $152.7 million, compared to $91.0 million in 2011, increase of 67.8%.

Insurance News - Wednesday, February 20, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Wednesday, February 20, 2013:

• State Farm sues Assessment Direct Inc. for $11 million over false and fraudulent documentation.
• 7 US states now allow digital proof of insurance instead of a pink slip. When will Ontario and the rest of Canada?
• SMA survey shows 70% of U.S. auto insurers plan some form of usage-based insurance.
• From the Ontario Throne Speech: implement the recommendations of the Auto Insurance Anti-Fraud Task Force and work to reduce insurance rates across Ontario; improve rural roads and bridges, suburban transit, and solve gridlock that threatens to cripple the GTA and Hamilton; and restrain program spending to reduce Ontario's debt-to-GDP ratio to 27%, while eliminating the deficit by 2017-2018.
• Fraser Institute Study: Ontario debt is worse than California, Province must address soaring public sector wages to slay deficit.

Insurance News - Tuesday, February 19, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, February 19, 2013:

• Steep hikes proposed for motorcycle insurance by Saskatchewan Government Insurance.
• What if the black box in your new car becomes a tool to invade your privacy? What if, on the other hand, it winds up saving your life after an accident?
• NICB reports a 27 percent rise in questionable claims since 2010 covering property, casualty, commercial, workers’ compensation, vehicle and miscellaneous. 
• Small tweaks will cut fraud at root of high auto insurance premiums.
• Car insurance based on driving habits comes to Utah.
• Calls for a national accreditation system to identify top body shops and pay them better rates.
• Movement against texting while driving develops across U.S. 

Insurance News - Friday, February 15, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Friday, February 15, 2013:

• Oklahoma insurance commissioner creates new advisory board to increase the effectiveness of the Oklahoma Insurance Department’s Anti-Fraud Unit.
•  New teen drivers would face cellphone ban under proposed U.S. Senate Bill approved by the Senate Committee on Public Safety.
• The Co-operators report 2012 net income of $257.7 million, compared to $150.3 million in 2011, an increase of 71.5%.
• Distracted driving is the new DUI, having cost 100 B.C. lives (30% of road fatalities) in 2012.

Insurance News - Thursday, February 14, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, February 14, 2013:

• Florida now requires Canadian drivers carry an international driving permit. Exemption may be coming but not before spring break. UPDATE: State Police indicate they will not enforce new requirement on Canadians.
• According to an American Trucking Association study, 70%-75% of fatal car-truck collisions are caused by the driver of a car. 
• Windsor Star Editorial: "Auto insurance: Dealing with high premiums" - looks like the NDP plan to make auto insurance rates into an election issue.
• Oregon bill would boost fines for drivers on phones to up to $1,000.
• When putting together a fraud case keep this story in mind - New York dentist smeared in Spitzer Medicaid fraud witchhunt wins $7.7 million from former governor's staff.

Insurance News - Monday, February 11, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, February 11, 2013:

• Google and regulators at odds over timing of self-driving cars, but they are coming. 
• Residents of Florida retirement community upset over insurance rules for souped-up golf carts, are they motor vehicles?
• Should socio-economic factors affect auto insurance?
• Big financial impact from weekend blizzard, especially for businesses still recovering from Sandy.
• Charles Sousa likely to become Ontario's next Finance Minister and get the auto insurance file, will he move forward on DR review, catastrophic impairment definition changes, implementing anti-fraud task force recommendations?
• Abacus Data online poll shows Wynne, Hudak and Horwath in dead heat. 

table source: Abacus Data

Insurance News - Saturday, February 9, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Saturday, February 9, 2013:

• NB consulting on minor injury cap and definition, both changes will allow more people to sue for damages.
• Star: Ontario’s NDP tiptoes back into the auto insurance minefield.
• Canadian Underwriter has a story on recent developments helping auto-fraud fighting efforts in Ontario.
• Fraud is driving auto insurance rates through the roof in New York City but still no reforms in sight.
• NICB Report: Pickup Truck Tailgate Thefts - if you don't know what that is watch this video below.

Insurance News - Thursday, February 7, 2013:

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Thursday, February 7, 2013:

• Dwight Duncan confirms resignation on Twitter yesterday, gives up his seat on February 14, so are the rumours true that Charles Sousa will be the next Finance Minister.
• AAA Foundation Study: Traffic safety attitudes show 'culture of indifference' to bad behaviour like drunk driving, text/cellphone use while driving and speeding. 
• Sun Editorial: Ontario auto insurance system a disgrace, cutting rates won't fix it. 
• Proposed New Jersey legislation would create statutory right for insured to file “bad faith” claim against insurer and recover legal fees.
• Oklahoma considering confiscating license plates of uninsured drivers.

Insurance News - Wednesday, February 6, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Wednesday, February 6, 2013:

• Google sees self-driving cars available to consumers in 3 to 5 years, regulators and insurers aren’t so sure it can happen that quickly.
• Premier-designate Kathleen Wynne signals her government will stay the course, says fighting auto insurance fraud is best way to cut auto insurance rates.
• Michigan politicians considering capping no-fault medical benefits on catastrophic claims which has triggered a clash between insurers and medical providers.
• Intact reports 2012 net operating income of $675 million up $215 million (47%) from 2011 on higher underwriting and investment income.
• Colorado lawmakers are debating a change in state law that would allow cars without drivers on roads

Judge Rules Auto Insurer Must Defend Policyholders Even After Paying Policy Limits

A recent Ontario Superior Court ruling has created some confusion regarding an insurer's responsibility to defend a policyholder in an action.  The confusion is the result of language used in the Insurance Act and the standard Ontario Automobile Policy (OAP 1).

Section 245 of the Insurance Act states:

Every contract evidenced by a motor vehicle liability policy shall provide that, where a person insured by the contract is involved in an accident resulting from the ownership, or directly or indirectly from the use or operation of an automobile in respect of which insurance is provided under the contract and resulting in loss or damage to persons or property, the insurer shall,

(a)  upon receipt of notice of loss or damage caused to persons or property, make such investigations, conduct such negotiations with the claimant and effect such settlement of any resulting claims as are deemed expedient by the insurer

(b)  defend in the name and on behalf of the insured and at the cost of the insurer any civil action that is at any time brought against the insured on account of loss or damage to persons or property;

(c)  pay all costs assess against the insured in an civil action defended by the insurer and any interest accruing after entry of judgment upon that part of the judgment that is within the limits of the insurer’s liability;

(d)  where the injury is to a person, reimburse the insured for outlay for such medical aid as is immediately necessary at the time.

The OAP 1 which is intended to provide a plain-language description of the law states:

3.3.1  If Someone Sues You

By accepting this policy you and other insured persons irrevocably appoint us to act on your or their behalf in any lawsuit against you or them in Canada, the United States of America or any other jurisdiction designated in the Statutory Accident Benefits Schedule arising out of the ownership, use or operation of the automobile.

If someone sues you or other insured persons insured by this Section for losses suffered in an automobile incident, we will provide a defence and cover the costs of that defence, including investigation costs. We will pay all legal costs the court assesses against you and other insured persons in the lawsuit we have defended.

If there is a judgment against you or other insured persons, we will pay any post-judgment interest owed on that part of the amount the court orders that falls within the liability limits of your policy.

We reserve the right to investigate, negotiate and settle any claim out of court if we choose.

If you are sued for more than the limits of your policy, you may wish to hire, at your cost, your own lawyer to protect yourself against the additional risk.

The Judge noted that the Insurance Act provides no qualifications with regards to defending a policyholder who has been sued while the OAP 1 indicates that the policyholder is expected to hire a lawyers if sued for more than the policy limits.  Since the Act takes precedence over the policy language, the insurer was held to be fully responsible to defend the policyholder in this case. 

 In this particular case Jevco Insurance has written an auto insurance policy for Vishal Malaviya, who was sued as a result of an auto accident in October 2005. In 2008, after hiring a lawyer who filed a statement of defence for Malaviya, Jevco offered to pay $200,000, which was the limit of Malaviya's policy, to the party suing Malaviya.

The action against Malaviya was still proceeding, so Jevco applied to the court to get a declaration it has "has no continuing duty to indemnify or defend" Malaviya, who argued that the policy "requires a full defense ... until it is tried on the merits or a final settlement is reached."
 

Insurance News - Tuesday, February 5, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Tuesday, February 5, 2013:

• Two-thirds of the states could be restricted in how they spend some of their federal highway funds this year because they haven't complied with mandates to combat drunken driving.
• Almost half of U.S. states are considering changing legislation to allow drivers to use smartphones to show proof of insurance coverage.
• IBC responds to NDP: Lower rates require lower costs, let's work together on a sustainable auto insurance product.
• Researchers identify links between driver visibility and road safety as a result of roadway lighting.

Studies Confirm that Multitasking, Such As Driving And Texting, Affects Performance

Zheng Wang, assistant professor of communication at Ohio State University, has conducted considerable research on multitasking. One study she conducted in 2012 indicated that multitasking hurts performance, but makes people feel better.  “There’s this myth among some people that multitasking makes them more productive,” according to Wang.  She noted that “they seem to be misperceiving the positive feelings they get from multitasking. They are not being more productive – they just feel more emotionally satisfied from their work.”

The study appears in the Journal of Communication.

Another study she conducted in 2012 has significant implications for distracted drivers.  Her research indicated that trying to do two visual tasks at once hurt performance in both tasks significantly more than combining a visual and an audio task.  So a driver who is texting on their phone is likely more “impaired” than if they were speaking on their phone.  They are both dangerous but the research showed that texting is much more dangerous.

But what’s really scary is that when people who tried to do two visual tasks at the same time were asked to rate their performance they rated themselves as better than those who combined a visual and an audio task.  In fact, their actual performance was worse.

The study appears in the journal Computers in Human Behavior.

Another recent study showed that those who frequently multitask are actually bad at it.  The study by Professor David Strayer and  Professor David Sanbonmatsu, both at Utah University, shows that people who frequently talk on their cellphone while driving are probably the ones who shouldn’t be doing it.  Their perception is that they are good at multitasking.

The study indicated that those who scored highest on the ability to multitask tended not to engage in it because they were more able to focus attention on what they are doing.

Their study is available on an online journal PLOS ONE.

Recently a woman distracted by a text fell feet-first into a frozen canal in Birmingham — and the entire incident was caught on tape by one of England's many CCTV cameras. This vividly illustrates have difficult it is to multitask.  What would have been the outcome has she been driving instead of walking?

So what is this all mean?  Distracted drivers are a greater hazard than they realize.  They do not believe that texting or talking on their phone impairs their driving ability and those who are worst at doing both are actually more likely to multitask.

Insurance News - Monday, February 4, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Monday, February 4, 2013:

• The Ontario NDP is calling for a 15% drop in auto insurance rates as one of their demands to support Kathleen Wynne's minority Liberal government.
•  Medical identity theft and fraud is a significant problem in the U.S. - although not as prominent, still an issue for Ontario auto insurance and HCAI.
• If marketing Usage Based Insurance for lower premiums doesn't attract drivers, how about offering them free Tim Horton's coffee for a policy year?
• Phase 2 of Nova Scotia's auto reforms is coming on April 1 and will introduce DCPD, limited vicarious liability for rental companies and minor injury treatment protocols.

Insurance News - Friday, February 1, 2013

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Friday, February 1, 2013:

• Thomson, Rogers video on anticipated changes to catastrophic impairment definition.
• In the U.S. auto insurers spends billions on marketing, but fewer drivers switching companies, maybe consumers only care about price.
• Fraser Institute likens Ontario to economic basket-cases as province’s debt climbs.  I guess that means what Greece is to Europe, Ontario is to Canada?
• According to a recent Insurance Market report by Marsh, favourable Canadian P&C market conditions will continue into 2013 with some possible upward rate pressure in second half of the year.