Q: I bought a new car a week ago, but I didn't want to call my insurance company yet, since I know my premium will go up. How long can I wait?
A: Do not wait. We're not kidding about this. Some auto insurance policies limit automatic coverage for a new or replacement vehicle to 14 days after purchase. Some others allow up to 30 days.
Here's why it's not worth the risk: If you wreck your new car and your claim is denied, you'll be out a lot more money than you saved on the premium.
The upshot: immediately contact your agent or insurer to add the vehicle and update your coverage.
Monday, August 13, 2012
Thursday, August 9, 2012
Woman charged with insurance fraud after pawning ring and claiming it was lost
A Snohomish County Woman has been charged for claiming that she'd lost a diamond ring that she had actually pawned.
The Attorney General's Office has chaged Laura Anne Dunn with attempted first-degree theft and insurance fraud. Arraignment is scheduled for Aug. 23 in Snohomish County Superior Court.
In January, Dunn told her insurer, Liberty Mutual Insurance, that she'd lost her ring during a New Year's Eve stay at a casino. The ring was valued at more than $9,000.
Investigators for Liberty Mutual checked with the casino's security staff, which had no record of Dunn reporting her ring missing. They asked Dunn to provide a number of records, including all photographs taken during her stay at the casino.
The investigators also checked pawnshop records. They discovered that Dunn had actually pawned the ring back in September 2011. In fact, the ring was still at the pawnshop until she picked it up in mid-March 2012.
Two weeks after she filed the claim, Dunn sent a note to Liberty Mutual.
"I have been extremely lucky," she wrote, saying that she'd found the ring snagged in a glove. "...Thanks for your time and effort on my behalf."
The following day, the insurer's investigators visited a local pawnshop, where they found and photographed the ring that Dunn had reported missing. They closed the claim and reported the case to Insurance Commissioner Mike Kreidler's Special Investigations Unit, which specializes in insurance fraud cases.
Update: On Dec. 19, 2012, Dunn pleaded guilty to attempted first degree theft. She was sentenced to 80 hours of community service and $600 in costs.
The Attorney General's Office has chaged Laura Anne Dunn with attempted first-degree theft and insurance fraud. Arraignment is scheduled for Aug. 23 in Snohomish County Superior Court.
In January, Dunn told her insurer, Liberty Mutual Insurance, that she'd lost her ring during a New Year's Eve stay at a casino. The ring was valued at more than $9,000.
Investigators for Liberty Mutual checked with the casino's security staff, which had no record of Dunn reporting her ring missing. They asked Dunn to provide a number of records, including all photographs taken during her stay at the casino.
The investigators also checked pawnshop records. They discovered that Dunn had actually pawned the ring back in September 2011. In fact, the ring was still at the pawnshop until she picked it up in mid-March 2012.
Two weeks after she filed the claim, Dunn sent a note to Liberty Mutual.
"I have been extremely lucky," she wrote, saying that she'd found the ring snagged in a glove. "...Thanks for your time and effort on my behalf."
The following day, the insurer's investigators visited a local pawnshop, where they found and photographed the ring that Dunn had reported missing. They closed the claim and reported the case to Insurance Commissioner Mike Kreidler's Special Investigations Unit, which specializes in insurance fraud cases.
Update: On Dec. 19, 2012, Dunn pleaded guilty to attempted first degree theft. She was sentenced to 80 hours of community service and $600 in costs.
Wednesday, August 8, 2012
"Hobo Prince Economic Project" founder fined $1 million by Oregon regulators
Back in April, we issued a cease and desist order against Shelby H. Bell, a man who runs the "Hobo Prince Economic Project."
The Clark County, Wash. man was promising people seven years' worth of weekly $900 payouts in exchange for a $25 signup fee. He maintained that each person’s contract would be financed through a complex series of transactions, including issuance of a $500,000 “reverse” insurance policy purchased with a $25,000 payment from an unnamed bank.
Since he wasn't licensed to transact insurance at all in Washington, Insurance Commissioner Mike Kreidler ordered Bell to stop trying to sign people up for this highly dubious offer. (We subsequently received numerous calls from people across the country who'd signed up for the plan and blamed us for dashing their hopes of a big payout.)
Yesterday, the Oregon Department of Consumer and Business Services fined Bell $1 million, saying that none of Bell's investors have apparently made any money.
"Bell in less than a year attracted more than $187,000 from at least 7,480 people in multiple states and U.S. territories," the department said in a press release, accusing Bell of "offering false hope to thousands of people."
"Bell claimed to be worth billions with backing from the U.S. Treasury through an International Bill of Exchange, which actually has no value," Oregon regulators continued. "Also, investigators determined that Bell used investors’ money to pay for food, movie tickets, a vehicle, and other personal expenses."
Here's a link to Oregon's order.
The Clark County, Wash. man was promising people seven years' worth of weekly $900 payouts in exchange for a $25 signup fee. He maintained that each person’s contract would be financed through a complex series of transactions, including issuance of a $500,000 “reverse” insurance policy purchased with a $25,000 payment from an unnamed bank.
Since he wasn't licensed to transact insurance at all in Washington, Insurance Commissioner Mike Kreidler ordered Bell to stop trying to sign people up for this highly dubious offer. (We subsequently received numerous calls from people across the country who'd signed up for the plan and blamed us for dashing their hopes of a big payout.)
Yesterday, the Oregon Department of Consumer and Business Services fined Bell $1 million, saying that none of Bell's investors have apparently made any money.
"Bell in less than a year attracted more than $187,000 from at least 7,480 people in multiple states and U.S. territories," the department said in a press release, accusing Bell of "offering false hope to thousands of people."
"Bell claimed to be worth billions with backing from the U.S. Treasury through an International Bill of Exchange, which actually has no value," Oregon regulators continued. "Also, investigators determined that Bell used investors’ money to pay for food, movie tickets, a vehicle, and other personal expenses."
Here's a link to Oregon's order.
What's the "Washington Fair Plan?"
Q: My home (or business) insurance has been canceled, and the cancellation notice refers to the Washington Fair Plan. What is that?
A: The Washington Fair Plan was established in 1968 to provide basic property insurance to consumers who could not obtain property insurance in the voluntary, or standard insurance market. Although many years have passed and the home insurance market of today offers many options for home insurance, the Fair Plan still exists and functions under the rules and regulations of our office.
Participation in this program is mandatory for all property insurers in Washington. All companies writing property insurance are members of the Fair Plan. Every insurance agent or broker who is licensed to write property insurance in Washington is required to know about and help consumers if they want the services of the Fair Plan.
The Fair Plan application may only be completed by a licensed insurance agent, and must be signed by the agent and the applicant. Basic fire insurance coverage may be provided for dwelling and commercial risks.
Although you will need to have a licensed insurance agent file an application on your behalf, you may still get coverage information directly from the FAIR Plan.
A: The Washington Fair Plan was established in 1968 to provide basic property insurance to consumers who could not obtain property insurance in the voluntary, or standard insurance market. Although many years have passed and the home insurance market of today offers many options for home insurance, the Fair Plan still exists and functions under the rules and regulations of our office.
Participation in this program is mandatory for all property insurers in Washington. All companies writing property insurance are members of the Fair Plan. Every insurance agent or broker who is licensed to write property insurance in Washington is required to know about and help consumers if they want the services of the Fair Plan.
The Fair Plan application may only be completed by a licensed insurance agent, and must be signed by the agent and the applicant. Basic fire insurance coverage may be provided for dwelling and commercial risks.
Although you will need to have a licensed insurance agent file an application on your behalf, you may still get coverage information directly from the FAIR Plan.
Monday, August 6, 2012
How long can an insurance company take to investigate an auto claim?
Q: Another driver hit my car last weekend, and I haven't been paid yet. How long does an insurer have to investigate and pay my claim?
A: Generally, when a claim is uncompliated (no injuries, not a large number of witnesses, no specialized reports needed), 30 days is considered to be a reasonable time frame to investigate and make coverage decisions.
This is true whether you've made the claim against your own insurer or someone else's. Many claims are investigated and paid within 30 days.
Sometimes -- particularly in complex property damage or injury claims -- it can take longer to agree on a settlement. But you should expect reasonable promptness getting answers to your questions during the process.
You can help expedite things by providing requested information, giving statements and answering questions promptly. And if things drag on too long and you live in Washington state, you can file a complaint with our office. (We're the state agency that regulates the insurance industry in Washington.)
A: Generally, when a claim is uncompliated (no injuries, not a large number of witnesses, no specialized reports needed), 30 days is considered to be a reasonable time frame to investigate and make coverage decisions.
This is true whether you've made the claim against your own insurer or someone else's. Many claims are investigated and paid within 30 days.
Sometimes -- particularly in complex property damage or injury claims -- it can take longer to agree on a settlement. But you should expect reasonable promptness getting answers to your questions during the process.
You can help expedite things by providing requested information, giving statements and answering questions promptly. And if things drag on too long and you live in Washington state, you can file a complaint with our office. (We're the state agency that regulates the insurance industry in Washington.)
Friday, August 3, 2012
Auto insurance and diminished value
Scenario: Your car is struck by another driver, who is at fault. His insurer pays for the repairs, but you believe that your vehicle -- since it has been in a wreck -- is worth less than it was before the crash.
Can you demand that the insurer compensates you for that diminished value?
Yes, but it can be difficult to prove. Diminished value can be part of a claim, but it is up to the claimant -- that's you, in the scenario above -- to prove that the value of the vehicle is diminished after the repairs have been completed.
Doing that may mean getting dealer testimony or an appraisal showing the value of the vehicle before the accident and after the repairs.
Our office, unfortunately, cannot force insurers to pay diminished value claims. You may need to seek legal advice to negotiate a settlement.
Can you demand that the insurer compensates you for that diminished value?
Yes, but it can be difficult to prove. Diminished value can be part of a claim, but it is up to the claimant -- that's you, in the scenario above -- to prove that the value of the vehicle is diminished after the repairs have been completed.
Doing that may mean getting dealer testimony or an appraisal showing the value of the vehicle before the accident and after the repairs.
Our office, unfortunately, cannot force insurers to pay diminished value claims. You may need to seek legal advice to negotiate a settlement.
Wednesday, August 1, 2012
What does personal injury protection cover?
Here in Washington state, auto insurance policies commonly offer personal injury protection, widely known as PIP. You can opt to add it your auto coverage. If you're in an auto accident, it will help pay for certain costs, up to certain limits.
Like what? It helps pay for:
But there are some things that it won't cover. For example, PIP coverage doesn't cover injuries caused when using:
Also -- and this is important -- PIP coverage does not cover services that your insurer decides:
Like what? It helps pay for:
- Medical expenses
- Lost wages
- Lost services
- and funeral expenses.
But there are some things that it won't cover. For example, PIP coverage doesn't cover injuries caused when using:
- Farm equipment
- Off-road vehicles
- Mopeds
- Injuries sustained while racing
- Or injuries sustained while committing a felony.
Also -- and this is important -- PIP coverage does not cover services that your insurer decides:
- Are not reasonable
- Are not necessary
- Are not related to the accident
- or are not incurred within three years of the accident.
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