Ouch!

Statistically, half of all households and businesses are underinsured by as much as 50%. Just this summer, I have come across:

•  2 homeowners who were insured at 60% of replacement cost – and it didn't cost 'em another penny to insure at 100% with me!
• 3 organizations who were severely (13 to 22 cents-on-the-dollar) underinsured... and one organization didn't know it until they had a fire last year. Their $70,000 fire damage cost them $47,000 out-of-pocket because they didn't have enough insurance. They were only expecting to pay their $1,000 deductible. They had to fight hard to get any payment. This was such a rudimentary blunder, it should have been avoided... or at least anticipated.

I am seeing these situations all too often. And I am concerned. I'm also honored to say that 2 of those 3 organizations are now sufficiently insured. We'll have the third taken care of shortly.

Your broker/agent should be reviewing your coverages with you at least once every 3 years... Don't you pay for someone to watch your back? Your church, your business, life - health - accident - boat - motorcycle - your house or new invention... unfortunately, most of us buy insurance, hoping that we'll never need to use it... and so we fight for the lowest price (often unaware of what we give up) – and then forget about it except when we write the check or make a claim.

We're licensed in 49 of 50 states (I'm just looking for a good reason to go to Hawaii)... and we represent hundreds of insurers. Is it time for you to discover the value of an independent broker?

Thank-you for reading...

~ Jon
jon@merriaminsurance.com

Just a donation [part 3 & Final Comments]

One day recently, I received an email that expressed a unsettlingly common dilemma quite a bit more clearly than most subtle hints I have received. “...unless you can provide equal coverage with a premium savings of 10% or more, and donate to the [non-profit organization] cash in excess of $10,000 per year and provide volunteers to the tune of 300hrs plus per year, I don’t think we need to talk.”

It seemed clear enough. My reply (hopefully gracious) included brief comment on the Ethical ramifications of the request.

Ethical: Thinking about “expected donations” in terms of “kick-back” or “bribe” may help clarify a bit. Even though it is for a good cause, I have struggled to bring myself to believe that an expected donation is considered “fair business practice.” Assuming that we derive our ethical principles from the Bible, there seems to be some instruction that we are not to engage in dishonest or immoral business practices. Exodus 23:7 mentions bribery, Deuteronomy 25:13-16 discusses the use of differing measures in business. In addition, the scriptures seem to teach that we ought to be above reproach in all we do (Numbers 32:22; 1 Tim 3:2; Titus 1:6) and that bribes and greed can get us into lots of trouble (Proverbs 15:27). I’m still amazed every time it is suggested that I make a donation to be recognized. 

Final Comments & Thoughts: Incidentally, I did recently receive a reply to my response, indicating that I completely misunderstood the email as a mandate for a donation and volunteer hours. It was actually just intended to communicate that they “do like their current broker and have not plan or desire to part ways with him.” That is a much simpler answer to contend with. Regardless, we have faced the same issue with quite a few other non-profit organizations. And while we’d like the opportunity to work together, we find it unappealing, illegal, unethical and un-Biblical. We believe that our contributions are a matter between us and God – and we strive to honor Him in all that we do.

Just a donation [part 2]

One day recently, I received an email that expressed a unsettlingly common dilemma quite a bit more clearly than most subtle hints I have received. “...unless you can provide equal coverage with a premium savings of 10% or more, and donate to the [non-profit organization] cash in excess of $10,000 per year and provide volunteers to the tune of 300hrs plus per year, I don’t think we need to talk.”

It seemed clear enough. My reply (hopefully gracious) included brief comment on the Biblical ramifications of the request.

Biblical: In Matthew 6:1-4, Jesus spoke of the Pharisees making a big deal about their tithe - and he mentioned that we should be so subtle that our left hand does not know what our right hand is doing. I can’t figure out how this Biblical instruction fits with the expectation of a donation in exchange for discussing the possibility of working together. This instruction seems to be connecting back to Matthew 5:6 (blessed are those who hunger and thirst for righteousness) by giving real-life examples of how we, as disciples, live out our Righteousness before our Lord... ultimately, it’s a matter of the heart.

Another example of wrong coverage

I was meeting with a small company that owns 4 vehicles. The company's insurance policy specifically excludes bodily injury coverage for employees in section 4 of the exclusions... but the vehicles are for the employees to use for work purposes. Now, how does that work... And who thought that was a good idea?

Just a donation

One day recently, I received an email that expressed a unsettlingly common dilemma quite a bit more clearly than most subtle hints I have received. “...unless you can provide equal coverage with a premium savings of 10% or more, and donate to the [non-profit organization] cash in excess of $10,000 per year and provide volunteers to the tune of 300hrs plus per year, I don’t think we need to talk.”

It seemed clear enough. My reply (hopefully gracious) included brief comment on the legal ramifications of the request.

Legal: I am legally bound in my duties, responsibilities, and freedoms since insurance is regulated both at the federal and state level. Morally and ethically, I have even tighter restrictions. The federal regulations are very clear. No monetary exchange (or even promise) can be in response to the purchase (or promised purchase) of insurance. Anti-kickback laws have been on the books since the 1970’s. The insurance companies take the regulations seriously – and in some instances, even alleged kickbacks can trigger an exclusion of coverage for “actual or alleged violation of any federal, state or local anti-kickback, illegal remuneration, self-referral or healthcare fraud and abuse law, or amendments to or regulations promulgated under any such law.” In addition, according to law research Trans-Lex, “Contracts based on or involving the payment or transfer of bribes ("corruption money", "secret commissions", "pots-de-vin", "kickbacks") are void.”


~ Jon

The Attack

I am amazed how conditioned people are... I've recently sent out an email to a few people, asking them if they'd be willing to share their input and opinion about an insurance program their association has endorsed. I've received replies like "No thank-you" and "I don't want to get involved with this at this time."

Are we conditioned to assume that all such requests will end up as sales calls?

Brief Survey... want your input.

I've noticed some interesting trends recently and would like your input.

If you were to receive some information about insurance that was of interest, would you be inclined to:

1. Leave it somewhere and forget about it.
2. Quick search on the internet
3. Reply by email
4. Pick up the phone & call
5. Mail something (stamp not required)

Would you reply with a number? Any additional commentary or explanation would be a bonus!